CHA Applauds Governor’s Plan to Support Homelessness Prevention and Healthcare Insurance Subsidies with Emergency Funds

Governor Ned Lamont today submitted a plan to the bipartisan leadership of the Connecticut General Assembly to use funding from the recently created Emergency State Response Reserve to support essential health and human services supports, including homelessness prevention and healthcare insurance subsidies.

“We appreciate the governor directing Emergency State Response Reserve funds toward essential human needs and health,” CHA said in a written statement.

Preserving Subsidies for Access Health CT and Covered CT Enrollees

The plan includes $64 million to replace expiring enhanced premium tax credits for residents enrolled in Covered CT, including adjusting the current assessment on total premiums to reimburse carriers for potentially higher utilization in this program through June 30, 2027.

It also includes $50.7 million to fund the replacement of the loss of enhanced healthcare subsidies for individuals between 100% Federal Poverty Level (FPL) and 200% FPL who are not on Covered CT and 50% of the lost subsidy for individuals between 400% FPL and 500% FPL during calendar year 2026.

CHA applauded the governor’s initial announcement last week during which he outlined his plans to provide temporary relief and address the looming expiration of COVID-era enhanced premium tax credits for individuals enrolled in plans through Access Health CT.

“We share the Governor’s view that rising uncompensated care harms patients and puts significant strain on the entire healthcare delivery system,” read CHA’s statement. “These stopgap measures offer important support for many individuals and families.”

Read CHA’s full statement here.

Homelessness Prevention and Support

The governor’s plan also includes $6.88 million in funds will be directed to providers in the state that receive funding through the U.S. Department of Housing and Urban Development’s (HUD) Continuum of Care program, which has been paused nationwide. The program provides support services and homeless prevention grants for about 170,000 families across the country.  Democratic Congresswoman Rosa DeLauro (CT-03) has raised concerns about the 9,000 Connecticut households supported by the program.  HUD is behind on renewing the existing funding levels for Continuum of Care providers, and the agency recently cancelled renewal applications.  It is unclear when the funding renewal applications will be accepted.

“We applaud Governor Ned Lamont’s commitment to preventing homelessness and prioritizing funding for response services.  Stable housing is foundational to health, and addressing housing instability is critical to improving health outcomes, reducing avoidable hospitalizations, and advancing equity across our communities,” CHA said in a statement.  

“Hospitals throughout Connecticut work closely with community partners to support housing resources and ensure individuals experiencing housing instability have the services and care they need.  The pause in federal support is deeply concerning and threatens to undermine these efforts.  When essential housing services are eliminated through funding cuts, the need does not disappear.  Individuals experiencing housing instability will be forced to seek shelter and support from other trusted community institutions, including hospital emergency departments.  While hospitals are a critical component of a community’s emergency care system, they cannot—and should not—serve as a substitute for stable housing,” read the CHA statement.

Learn more about Connecticut hospitals’ initiatives that support housing in local communities here.

Read the governor’s announcement here.

Additional Provisions

The governor’s plan to utilize emergency reserve funds also includes requests to withdraw funding from the reserve to support multiple other human services initiatives, including:

• $24.5 million in funding for the statewide network of community food banks and pantries to increase their capacity to serve residents impacted by the eligibility changes in SNAP through June 30, 2027
• $5 million (state share) in supplemental payments to federally qualified health centers to help promote access to primary and preventive care for those individuals with incomes below 100% of the FPL at risk of losing coverage due to elimination of all federal health plan subsidies through June 30, 2027
• $8.5 million to cover the lost federal reimbursement for services provided by Planned Parenthood of Southern New England facilities from July 4, 2025 through July 3, 2026
• $1.9 million to replace funding for Planned Parenthood of Southern New England’s frozen federal Title X grant, which provides individuals with comprehensive family planning and related preventive health services
• $4.7 million in additional funding to 2-1-1 to support additional call volume and Community Action Agencies to support community outreach and assistance for SNAP recipients in understanding and meeting new eligibility requirements through June 30, 2027
• $1.54 million to support operational costs for the Connecticut Department of Social Services to help Medicaid and SNAP clients meet new eligibility rules and program requirements to the extent possible, including modifying information systems and increasing vendor call center support

Read Governor Lamont’s letter to legislative leaders detailing the plan here.