Senate Democrats Unveil Legislative Agenda Focused on Affordability
HARTFORD – Senate Democrats today outlined an ambitious legislative agenda to counter rising costs in the Trump economy by proposing broad tax relief for Connecticut families, expanded healthcare access, and new protections against private equity exploitation as residents face mounting costs from tariffs, the elimination of healthcare subsidies, and the deterioration of privacy and constitutional rights.
At a press conference Thursday at the Legislative Office Building, Senate President Pro Tem Martin M. Looney and Majority Leader Bob Duff, joined by members of the Senate Democratic Caucus, highlighted priority legislation addressing affordability, healthcare costs, consumer privacy protections, online safety, support for children and families, as well as educational equity.
Senate Bill 1: Making Connecticut More Affordable
The caucus’s flagship proposal, Senate Bill 1, includes sweeping tax relief measures designed to reduce costs for Connecticut families. The legislation would eliminate the sales tax on school supplies, prepared food purchased at grocery stores, clothing under $100, and certain major home appliances, such as washing machines, dryers, and refrigerators. Additionally, the bill will establish a renters’ tax credit, create a tax credit for family members caring for elderly or disabled relatives, and eliminate the state income tax on Social Security benefits.
Sales Tax Cuts
- School Supplies – $12.9 million
- Prepared Food at Grocery Stores – $65 million for the entire 7.35%
- Clothing under $100 – $175 million per year
- Home Appliances – $12 million per year, if based on the Maryland model of exempting Energy Star appliances
Income Tax Cuts
- Elderly Care – Exact cost still being analyzed OFA, but a maximum of $60 million
- Rental Tax Credit – Exact cost still being analyzed OFA, and parameters to be determined, but as high as $395 million
- Social Security – $54 million: Of the 737,000 receiving Social Security, 225,000 people still pay the tax.
“Reckless federal policies have created an affordability crisis for American families,” Senator Looney said. “Tariffs that function as taxes on consumers and the elimination of healthcare subsidies have made it harder for families to make ends meet. While we cannot stop Washington Republicans from ratcheting up costs, we can work to reduce the everyday expenses that strain household budgets. Senate Bill 1 provides relief where families need it most, cutting taxes on clothing, school supplies, and groceries while providing tax credits for those caring for elderly or disabled relatives.”
“While Washington Republicans prioritize billionaires over working people, Connecticut is stepping up to provide real relief,” Senator Duff said. “Whether it’s eliminating the sales tax on back-to-school clothes and supplies or making sure families aren’t facing unnecessary taxes when they buy groceries, Senate Bill 1 puts money back in people’s pockets. We’re not going to sit by while GOP policies drive up costs for Connecticut families.”
Senate Bill 2: Supporting Local Commerce
Senate Bill 2 will reduce operational costs for Connecticut’s small businesses and strengthen municipal resources. The bill eliminates the 6.35% sales and use tax on electricity and natural gas for commercial and industrial customers with gross income under $10 million, providing immediate relief to Main Street businesses struggling with high energy costs.
Additionally, the proposal redirects revenue from the existing 1% meals tax increase to support communities and tourism: half of the collected funds will be returned directly to municipalities as local aid, while the other half will be deposited into the state’s Tourism Fund. By reducing costs businesses pass on to consumers and reinvesting in local communities, this proposal aims to make Connecticut more competitive for small business owners while ensuring towns and cities have the resources they need to thrive.
Senate Bill 3: Healthcare Affordability
After Donald Trump and Congressional Republicans allowed the federal enhanced premium tax credits to expire at the end of 2025, Connecticut residents saw their premiums on Access Health CT skyrocket. While Connecticut has provided full subsidies to families earning 100-200% of the Federal Poverty Level and partial subsidies to those earning 400-500%, middle-income families are still struggling with these price hikes. Senate Bill 3 proposes full subsidies for families earning 400-600% of the Federal Poverty Level, ensuring Connecticut families can afford to stay healthy.
Senate Bill 4: Consumer Privacy
Building on Connecticut’s national leadership in consumer privacy protections, Senate Bill 4 introduces comprehensive privacy measures that address emerging threats to consumer data in the digital age. The bill will tackle critical privacy concerns, including the lightly regulated sale of geolocation data, the proliferation of license plate readers and facial recognition technology, and the exploitative practices of data brokers.
Given federal law enforcement’s current overreach and violations of civil rights, this bill will help prevent third-party vendors from retaining or providing data that tracks individuals’ movements and locations to federal agencies, including ICE.
The proposal also addresses dynamic pricing schemes and ensures price transparency on car sales by requiring retailers to disclose costs attributable to tariff increases on receipts. To effectively enforce these enhanced protections, the bill includes increased funding for the Attorney General’s office.
Senate Bill 5: Online Safety
Senate Bill 5 advances critical artificial intelligence legislation to protect Connecticut residents from emerging digital harms, with a primary focus on preventing AI-driven threats to mental health and youth safety. The bill establishes accountability measures for chatbot platforms and AI systems that encourage self-harm or suicidal ideation.
The legislation will hold technology companies responsible when their AI systems promote dangerous content or behaviors, ensuring that platforms cannot evade liability for harm caused by their algorithms. This bill sets clear rules to keep AI safe and stops companies from using AI to unfairly discriminate against job applicants. Connecticut is leading the nation in making sure AI helps people instead of putting them at risk, especially those who are most vulnerable.
Senate Bill 6: Supporting Children and Families
Recognizing the rising cost of living in Trump’s economy, Senate Bill 6 proposes relief through a refundable child tax credit covering up to three children. The credit would support families earning up to $100,000 for single filers or up to $200,000 for joint filers.
With grocery costs high and families struggling, the bill also seeks to increase funding to provide no-cost breakfast and no-cost lunch through the school meal program. The expected cost of providing free breakfast is $13 million per year.
Senate Bill 7: Educational Equity
Senate Bill 7 proposes a historic increase in state funding for public education by adjusting the Education Cost Sharing formula’s foundation grant. The foundation grant is the basic, per-pupil funding each district receives under the ECS formula before other adjustments. Increases in the foundation grant benefit every town and city in Connecticut.
Currently, the foundation sits at $11,525 per pupil. Senate Bill 7 would raise that amount to $12,500 in fiscal year 2027, $13,500 in fiscal year 2028, $14,500 in fiscal year 2029, and $15,500 in fiscal year 2030. The projected cost of raising the foundation grant in the first year is approximately $194 million.
On the fourth year of scheduled increases in state education support, the bill would index the foundation grant to economic indicators, ensuring that Connecticut communities have school funding that keeps pace with current conditions.
The bill will also establish a working group to evaluate the Education Cost Sharing grant and recommend improvements.
Finally, Senate Bill 7 will establish a program for paid student teaching positions in low-income districts for educators who will continue to work in those districts in Connecticut for the first 5 years after their student teaching ends.
Senate Bill 8: Supporting Graduate Students
For 20 years, American students have used the federal GradPLUS loan program to access lower-interest loans to bridge financial gaps in paying for their graduate studies. The Trump administration has cut the program and implemented lower borrowing limits for students pursuing critical degrees such as nursing, education, and social work. Senate Bill 8 proposes expanding the Connecticut Higher Education Supplemental Loan Authority to backfill GradPLUS cuts, thereby investing in workforce development and offering Connecticut students a pathway to affordable higher education without relying on high-interest private loan servicers.
Senate Bill 9: Supporting Commuters and Microtransit Services
In 2024, Connecticut funded $19.5 million for a two-year pilot program that implemented nine micro transit systems across the state. These programs provide on-demand, accessible, and affordable transportation to connect underserved areas and bridge the “last-mile” gap that keeps seniors, people with disabilities, and those without transportation from reaching larger transit hubs. The pilot program was successful, and Senate Bill 9 proposes a $9 million one-year continuation of the program, as well as a commuter tax credit and leasing of airspace over Department of Transportation (DOT)-owned land to build more housing.
Additional Work on Behalf of Residents
Beyond the caucus’s low-number bills, Senate President Pro Tem Looney and Majority Leader Duff have outlined additional high-priority issues in a series of letters to the chairs of the legislature’s subject matter committees as part of their work on behalf of Connecticut residents. Those issues include:
Protecting Constitutional Rights from Federal Overreach
The unprecedented attack on civil and Constitutional rights by the Trump administration, as it weaponizes the federal Immigration and Customs Enforcement agency against American residents, must stop. Senate Democrats will introduce legislation to address ICE overreach and a variety of Constitutional concerns, including creating a new cause of action for wronged individuals to sue federal agents; clarifying the state Inspector General’s ability to investigate federal officers who use deadly force in Connecticut; banning all law enforcement officers from wearing masks; prohibiting armed military forces from entering Connecticut without the governor’s permission; requiring judicial warrants for arrests in certain areas like hospitals, homeless shelters, schools, and places of worship; and creating a database to track ICE activities in Connecticut.
Implementing No-Excuse Absentee Voting
On Election Day 2024, 58% of Connecticut voters approved a change in the state Constitution allowing any Connecticut voter to request an absentee ballot without having to meet any of the existing criteria for voting absentee. Senate Democrats will work to establish the rules and procedures for implementing no-excuse absentee voting.
Supporting Workers’ Rights
Senate Democrats will introduce legislation to provide unemployment benefits to striking workers who have been on strike for more than two weeks, representing a step forward for middle-class families in Connecticut by providing financial support during labor disputes. New York and New Jersey already have such laws.
Expanding Health Coverage Options
The Connecticut Health Security Act will focus on small-business employees, entrepreneurs, and part-time workers whose employers don’t offer health care coverage.
Criminal Justice Reform
Senate Democrats are advancing criminal justice reforms, including codifying into state law the Department of Corrections’ informal policy not to deny any inmate medical treatment based on their ability to pay. Another proposal would require prisons to allow inmates two or three in-person visits per week, building on research showing that regular family visits reduce recidivism by 26% and reduce prison misconduct by 25%.
Restricting Private Equity Across Critical Sectors
Senate Democrats have called for comprehensive action to limit the growing influence of private equity firms across multiple sectors that impact Connecticut families.
Education & Special Education Services
In a letter to committee leadership, Senators Looney and Duff called on the Education Committee to restrict private equity firms in Connecticut’s education and special education services. The senators noted that private equity-owned companies are twice as likely to go bankrupt and requested legislation to protect students, families, and education workers from profit-driven models that prioritize returns over quality services.
“At a time when Connecticut residents are watching their bills pile up and struggling to make ends meet, the last thing they need are risky private equity deals threatening their jobs, their communities, and their security,” the senators wrote.
Child Care
As child care costs rise, private equity firms are entering the field with the resources and capital to acquire significant market share, seeking higher profitability at the expense of families and workers. Proposed legislation will counter the effects of private equity ownership in child care and ensure families can access affordable, high-quality early child care.
Health Care
Private equity weakened several important community hospitals in Waterbury, Manchester, and Vernon-Rockville over the last decade. Building on concepts developed in 2025, new legislation will seek to limit private equity ownership of Connecticut hospitals and health care facilities, increase oversight, and protect the security of existing health care operations in Connecticut.
Nursing Homes
The Aging Committee is expected to consider legislation restricting private equity ownership of nursing homes in Connecticut. In a letter to committee leadership, Senators Looney and Duff highlighted the need to protect seniors, their families, and nursing home workers from profit-driven models that threaten the stability and quality of long-term care facilities.
Housing
Connecticut is home to one of the most constrained housing markets in the United States, with limited supply and high demand elevating prices. Studies show that private equity ownership makes homeownership less accessible for first-time buyers and pushes housing prices even higher, with private equity owning up to one in 11 residential parcels in urban locations. Legislation will limit private equity’s ability to acquire swaths of the housing market by preventing private equity companies from making offers on one- and two-family homes for the first 75 days after listing or face a $250,000 fine.
FOR IMMEDIATE RELEASE
Contact: Kevin Coughlin | kevin.coughlin@cga.ct.gov | 203-710-0193
