Lamont wants to tap $500M emergency reserve fund

(The Center Square) — Connecticut Gov. Ned Lamont is asking for permission from lawmakers to tap into a $500 million emergency fund to help offset the impact of federal cuts and policy changes.

A plan submitted by the Democrat to legislative leaders on Thursday calls for diverting more than $164 million from the fund to cover costs for food pantries and homeless services, subsidize health care premiums for residents who stand to lose enhanced Obamacare tax credits of the year, and plug funding gaps for women’s reproductive services, among other priorities.

“We should be supporting programs that increase access to food, healthcare, and homelessness prevention and response, and it is a shame that the federal government is cutting back on these services that provide a safety net for those who are most in need and which ultimately support the health and safety of our entire country,” Lamont said in a statement.

“These are services that must continue to be supported, and here in Connecticut we will stand behind them and do what we can to ensure that this most basic assistance remains available,” he added.

Under Lamont’s plan, a majority of the money, or nearly $115 million, would be devoted to replacing the expiring Affordable Care Act tax credits for Connecticut residents who get their healthcare through the federal exchange. Another $5 million would go to supplemental payments to federally approved health centers to help promote access to primary and preventive care.

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The plan also calls for devoting $24.5 million to regional food pantries and nonprofit organizations to expand their capacity to distribute following cuts to the federally funded Supplemental Nutrition Assistance Program, also known as food stamps.

Another $8.5 million would go to Planned Parenthood of Southern New England to offset the impact of federal funding cuts. The group would get another $1.9 million for “family planning and related preventive health services” under Lamont’s plan.

Lawmakers, meeting in a special session last month, approved $500 million in surplus funds for the emergency reserve and authorized the governor to unilaterally use the money. But the law also requires Lamont to get permission from legislative leaders to allocate funding in some situations.

Earlier this week, Lamont announced that he was tapping $5.2 million from the fund to help offset the impact of a reduction in federal support for homelessness programs.

And last week, he pledged $70 million to partly offset the anticipated loss of $295 million in enhanced federal tax credits through the Affordable Care Act, which are set to expire at the end of the year, absent last-minute congressional intervention.

There was no immediate response from legislative leaders about Lamont’s plan, but Democrats who control the Connecticut state Assembly and Senate had previously voiced support for his move to draw down $5.2 million for homeless services.

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“In November, our state prepared an emergency response reserve for moments like this, where the Trump administration puts important funding in limbo, and Connecticut residents are left picking up the pieces,” Senate Majority Leader Bob Duff, D-Norwalk, said in a statement. “I’m grateful for our state’s work to back up our commitments to the people of Connecticut and to help those in harm’s way.”

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