06/05/2025
Treasurer Russell Commends General Assembly on Passage of Key Agency Legislation to Invest in Families and Education, Support Vulnerable Populations, and Promote Economic Stability in Connecticut
Treasurer Russell Commends General Assembly on Passage of Key Agency Legislation
to Invest in Families and Education, Support Vulnerable Populations, and Promote Economic Stability in Connecticut
Hartford, CT — Connecticut State Treasurer Erick Russell on Thursday applauded the General Assembly for enacting several important pieces of legislation proposed or supported by his office that will deliver tax relief to families and businesses, enhance healthcare and protections for vulnerable populations, and help to ensure Connecticut’s long-term economic prosperity.
“These laws, which balance tax relief and fiscal responsibility with bold investments in our families, children, and vulnerable communities, reflect our commitment to Connecticut’s progress. I thank the General Assembly for its work during the 2025 legislative session and its partnership in helping to craft and pass this important legislation,” said Treasurer Russell.
Key laws proposed or supported by the Office of the Treasurer and passed during the 2025 legislative session:
INVESTING IN FAMILIES AND EDUCATION
Early Childhood Education Endowment
The State Treasurer will serve as the financial steward of Connecticut’s first-in-the-nation, permanent, independent investment vehicle for childcare. Beginning in Fiscal Year 2028, families earning less than $100,000 will receive free childcare through the endowment, and all others will pay no more than 7% of their household income.
“The establishment of the Early Childcare Education Endowment is a major achievement for Connecticut that will expand access to early care and education across our state. This innovative approach allows us to continue paying down long-term liabilities while also making meaningful long-term investments in Connecticut’s families and children,” said Treasurer Russell.
“I want to thank Governor Lamont, Legislative Leaders, Office of Early Childhood Commissioner Beth Bye and all of the dedicated advocates who have made this a priority. My office looks forward to collaborating with all of them as we oversee the administration and stewardship of the Endowment, which will create better options for parents, enhance the state’s available workforce, and provide greater opportunities for every child in Connecticut.”
CHET Tax Credit
Effective July 1, 2025, employers will be eligible for a 25% tax credit for contributions made to employee Connecticut Higher Education Trust (CHET) 529 college savings accounts. Proposed by the Office of the Treasurer and supported by the Connecticut Business and Industry Association (CBIA), this credit will encourage more employers to offer CHET contributions to employees as part of their benefits packages, enabling employees to save more for their family’s education expenses. The credit is capped at $500 per employee.
“By incentivizing businesses to offer this valuable benefit, we’re supporting more students and families in planning and saving for higher education—helping to reduce financial barriers and build a stronger foundation for Connecticut’s workforce and economy,” said Treasurer Russell.
The CHET Direct program currently has about $5 billion in assets under management and nearly 200,000 accounts. The Office of the Treasurer manages another $1 billion in assets in the CHET Advisor program marketed to families through a network of financial advisors developed by our partner, Fidelity.
Over the past four years, families have redeemed approximately $800 million to cover education costs for students attending nearly every public and private college in Connecticut, and schools in other states.
Expansion of ABLE
The Office of the Treasurer administers ABLE CT, a federally qualified program that allows people with disabilities to save money without losing their eligibility for federal or state benefits such as Medicaid or Supplemental Security Income (SSI).
On the Treasurer’s recommendation, the ABLE CT statute has been updated and expanded to align with recent federal law changes in two important ways. Effective January 1, 2026, the age of onset, which determines eligibility for an ABLE account, will be raised from 26 to 46, significantly increasing the pool of eligible beneficiaries, including an estimated one million military veterans nationwide who became disabled in service to our country. Additionally, the value of ABLE CT accounts will now be disregarded for all means-tested programs.
“The ABLE program has transformed countless lives by reducing the number of impossible financial and moral decisions for people with disabilities and the families who support them. Before ABLE, saving for the future often meant risking essential benefits like Medicaid, making financial planning a major challenge,” said Treasurer Russell.
“By protecting these benefits and expanding access to older, other-abled adults – including wounded veterans – ABLE offers more peace of mind when saving for vital expenses such as housing, education, assistive technology, and medical care. ABLE is a pathway to independence, opportunity and dignity and a step toward greater inclusion and fairness or our society.”
SUPPORTING VULNERABLE POPULATIONS
Establishing the CT Safe Harbor Fund
The Safe Harbor Fund, administered by the Office of the Treasurer and funded entirely by private donations (no taxpayer dollars), will provide resources to local providers and community organizations to help individuals in financial need travel from states that deny reproductive or gender-affirming care to states like Connecticut to access the safe, legal, and compassionate care they need. The fund will assist with expenses like travel, lodging, or childcare.
Treasurer Russell is leading the effort to establish a nationwide network of Safe Harbor states. Last week, State Treasurers and Financial Officers from California, Colorado, Illinois, Maryland, Massachusetts, Rhode Island, and Vermont joined Treasurer Russell in expressing their support for the Connecticut legislation and nationwide initiative.
“The ability to make and access personal healthcare choices should never depend on where you live or how much money you have,” said Treasurer Russell. “Safe Harbor Funds can serve as a vital lifeline for people in need of care that is legal and available in our state but prohibited in theirs. History has shown that when access to essential care is restricted, our most vulnerable suffer. Those with financial resources will always have the means to access the care and treatment they need, but these restrictions disproportionately impact low-income individuals – often communities of color, youth, members of the LGBTQ+ community and others facing systemic barriers to healthcare.”
FURTHER HELPING CONNECTICUT CONSUMERS AND TAXPAYERS
Making the STF Cap Permanent
In recent years, reserves in the Special Transportation Fund (STF) had grown significantly. Last year, Treasurer Russell and the Lamont Administration proposed using funds in excess of 18% of operating expenses to pay down long-term debt. This provision was adopted by the legislature for the current Fiscal Year and enabled the early payoff of $570 million of debt, saving taxpayers an estimated $726 million over the next decade. The new law, proposed by the Treasurer and enacted during this legislative session, makes this provision permanent.
“Retiring state transportation debt early benefits Connecticut taxpayers by reducing the debt burden while we continue to fund and invest in the critical transportation projects they rely on,” said Treasurer Russell. “This simple but powerful approach to fiscal management was one of the true successes of the 2024 legislative session, and it will now benefit Connecticut taxpayers for years to come.”
Modernizing Connecticut’s Unclaimed Property Program and Strengthening Consumer Protections in Towing Laws
Several legislative changes were recently enacted to modernize and streamline the handling and disposition of unclaimed property, including key updates to the treatment of funeral service contracts, notification processes, and the reporting and management of abandoned property.
Additionally, with input from the Office of the Treasurer, the legislature passed a bill enhancing transparency and consumer protections in the towing industry. Under the new law, towing companies must maintain detailed records of all tows and notify vehicle owners prior to sales. Companies are now required to wait 30 days before selling vehicles valued under $1,500—doubling the previous 15-day waiting period. They are also prohibited from requiring cash-only payments for vehicle release and must wait longer before towing vehicles just because of an expired parking permit.
Importantly, any unclaimed proceeds from the sale of towed vehicles must be deposited into the state’s unclaimed property fund, overseen by the Office of the Treasurer, so vehicle owners have a clear process to get their money back.
In Fiscal Year 2024, the Office of the Treasurer returned $82 million in unclaimed property to 44,065 individuals, businesses, and organizations across Connecticut. Residents can visit CTBigList.gov to search for unclaimed property, which may include savings or checking accounts, uncashed checks, matured certificates of deposit, stocks, bonds, mutual funds, traveler’s checks, money orders, and life insurance proceeds.
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About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit: Connecticut Office of the Treasurer Erick Russell.
Contact: Brett Cody
brett.cody@ct.gov | (959) 529-2468