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SB 1358 Connecticut Senate · 2025 Regular Session

AN ACT CONCERNING INFLATIONARY RATE INCREASES FOR STATE-CONTRACTED NONPROFIT HUMAN SERVICES PROVIDERS.

SB 1358 adjusts funding rates for state-contracted nonprofit human services providers (such as childcare centers, mental health clinics, and elder care agencies) to match annual inflation. This prevents their budgets from shrinking as costs rise, ensuring they can maintain services without cuts. The law directly affects these nonprofits by requiring state agencies to update contract payments each year based on the official inflation rate. It became law as Public Act 25-151 after the governor signed it on July 8, 2025. The change applies retroactively to contracts renewed or adjusted in 2025.
Issues: ✓ HealthcareSupports HealthcareAdjusts funding for mental health clinics and elder care providers to match inflation, preventing service cuts and maintaining access to healthcare services.95% confidence
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
May 2025
Senate Passage
May 2025
House Passage
Jun 2025
Signed into Law
Jul 2025
Introduced Feb 20, 2025 Signed Jul 8, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Raised Bill → HS Joint Favorable Substitute · 4 edits
MODERATE
This bill was revised from a 'Raised Bill' to a 'Joint Favorable Substitute' version, incorporating significant changes to how nonprofit human services providers are compensated and regulated. The most notable change is the addition of an automatic annual rate increase mechanism tied to the consumer price index, ensuring providers receive compensation that keeps pace with inflation. Several reporting requirements were modified, with the original bill's focus on reviewing and eliminating burdensome reports being replaced by a requirement for the Secretary to file a triennial report on contract rates and funding needs.
Scope change
The bill's scope expanded to include an automatic annual rate adjustment for recurring contracts with nonprofit human services providers, while the definition of 'state agency' was narrowed from referencing section 4-70b to section 4-37e of the general statutes.
FISCAL

Added a requirement that state agencies must increase contract rates annually by the percentage increase in the consumer price index for all urban consumers in the northeast region, with a floor preventing rate decreases.

REQUIREMENT

Replaced the original requirement for the Secretary to review and eliminate burdensome reporting requirements with a new requirement for the Secretary to file a triennial report on contract rates and funding needs.

DEFINITION

Changed the definition of 'state agency' from referencing section 4-70b of the general statutes to referencing section 4-37e of the general statutes.

TIMELINE

Modified the effective date for the new reporting requirements in Section 1 from February 1, 2026 to July 1 annually for rate adjustments, and changed the reporting frequency from every five years to every three years.

Floor votes · Senate May 28, 2025 · House Jun 4, 2025

How they voted

28–8
Passed
Total votes 36
May 28, 2025
D Democratic25
25 Yea
100% Yea
R Republican11
3 Yea 8 Nay
72% Nay
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
26
Key actions
7
Committee
3
Amendments
2
Jul 8, 2025
Signed into law
SIGNED BY GOVERNOR
upper
Jun 4, 2025
Lower · Passed
HOUSE PASSED, SEN. AMEND. SCH. A
lower
Jun 4, 2025
Lower · Passed
HOUSE ADOPTED SEN. AMEND. SCH. A
lower
May 28, 2025
Upper · Passed
SEN. PASSED, SEN. AMEND. SCH. A
upper
May 28, 2025
Upper · Passed
SEN. ADOPTED SEN. AMEND. SCH. A
upper
May 5, 2025
Upper · Passed
Joint Favorable
upper
Mar 5, 2025
Upper · Passed
Joint Favorable Substitute
upper
Feb 20, 2025
Committee
REF. TO JOINT COMM. ON Human Services
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.