Lamont proposes new nonprofit advisory board

Hartford Business Journal – Tuesday, February 10, 2026
By David Krechevsky

Gov. Ned Lamont has proposed a bill intended to strengthen Connecticut’s nonprofit health and human services providers as they face increasing financial and administrative pressures tied to federal policy changes.

The legislation, Senate Bill 87, would create a nonprofit provider advisory board and a new state nonprofit policy coordinator position to improve coordination between the state and nonprofits. The bill also seeks to protect volunteers and reduce financial uncertainty for organizations that deliver care to some of the state’s most vulnerable residents.

Nonprofit providers deliver a wide range of services to more than half a million people in Connecticut, according to Gian-Carl Casa, president and CEO of The Connecticut Community Nonprofit Alliance, a statewide association of community nonprofit organizations.

Casa said his members support Lamont’s bill.

“Nonprofits do work in communities so that state and local governments don’t have to,” he said. “They’re cost-effective, they’re very efficient, but contracts to do that work are worth more than $2.9 billion.”

Those contracts, though, can be complicated because they can be funded by multiple state agencies, Casa said.

“So to have a forum where these things can be discussed can only help smooth out some of those areas to make the system more efficient overall,” he said.

The Lamont administration says the nonprofits provide a variety of services, including behavioral health care, disability services, housing assistance and support for seniors. All of those organizations expect increased demand as enhanced federal Affordable Care Act subsidies expire and Medicaid eligibility standards tighten, changes that could leave more residents seeking services while increasing administrative strain on providers, it said.

Establishing a nonprofit provider advisory board and creating a nonprofit policy coordinator position would improve communication between nonprofits and state agencies, streamline administrative processes, promote volunteer engagement and develop collaborative policy solutions aimed at reducing costs and improving efficiency, the administration said.

The bill also includes several insurance-related provisions intended to address specific challenges faced by nonprofits and their volunteers.

One section would prohibit auto insurers from imposing surcharges or canceling policies solely because a policyholder volunteers as a driver providing free rides to seniors. State officials say concerns about insurance penalties can discourage volunteers, limiting transportation options for older adults who rely on nonprofit programs for medical appointments and daily needs

Another provision in the bill would shorten the time during which insurers can seek repayment of funds previously paid to nonprofit providers. Current state law allows insurers to claw back payments for up to 18 months; the bill would reduce that window to 12 months, a change the administration says would lower financial risk and improve cash-flow predictability for providers operating on tight margins

The Lamont administration describes the bill as a proactive response to an uncertain federal landscape and argues that stronger state-nonprofit partnerships are needed to maintain access to essential services statewide.

Casa also notes that nonprofit organizations, not including colleges and hospitals, employ 118,000 people in Connecticut, making them a significant part of the state’s economy.

With the 2026 legislative session just underway, Casa said he expects to see changes to the bill before it comes to a vote.

“We’ll be talking to legislators and with the governor’s office about that,” he said.

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