Budget & Taxes

SB 298 reallocates state funds across multiple agencies for the 2025-2026 fiscal year. It reduces $3.4 million from Temporary Family Assistance (TANF) funding for the Department of Social Services while appropriating $1.7 million to the Labor Department for unemployment program IT upgrades and $1.7 million to the Department of Education for Adult Education. The bill allocates $1.5 million to five school districts (Newington, Wethersfield, Cromwell, Rocky Hill, Middletown) for high-acuity school-based mental health programs and $750,000 for a teacher residency program operated by the Capitol Region Education Council. These changes directly affect TANF recipients, school districts, mental health providers, and teacher training initiatives.

This bill establishes the "Federal Cuts Response Fund" to help the state address reductions in federal funding for state programs. It transfers $330,811,954 from the state's Budget Reserve Fund into this new fund, which can be used by the Office of Policy and Management to respond to federal policy changes (like P.L. 119-21) that reduce funding for state programs. Unspent funds can carry over to the next fiscal year, but the state legislature must be notified of all spending or transfers and has 24 hours to disapprove any action. Any remaining balance in the fund must be returned to the Budget Reserve Fund by June 30, 2027, ending the fund's operation.