Senator Hochadel Votes to Pass State Budget Including Funding for Nonprofits

Senator Jan Hochadel, D-Meriden, voted Tuesday to approve the 2026-27 biennial state budget. The budget dedicates significant resources to education and childcare, and invests in nonprofit organizations, which serve vulnerable populations throughout Connecticut.

The bill, which passed the Senate 25-11, preserves a $50 million funding increase in the fiscal year ‘25 budget for Connecticut nonprofits. Additionally, it contains a $45 million funding increase for nonprofits, including $15 million to increase Medicaid rates for nonprofit providers and $30 million to fund cost of living increases for at some nonprofit organizations.

“We rely on nonprofits to care for some of the most vulnerable people in our communities and, too often, we ask them to do that work without the financial support they need,” said Senator Jan Hochadel. “For instance, Beth Fisher and her team at Kuhn Employment Opportunities in Meriden work every day to support adults with disabilities through job training and day services that also give their families the ability to work and care for their loved ones. Unfortunately, funding hasn’t kept pace with the rising costs of providing care. My hope is that this budget begins to close that gap and gives organizations like Kuhn the resources they need to continue their important work.”

The balanced $56.16 billion two-year budget does not increase taxes, reduces state costs and maintains fiscal responsibility in addition to making needed investments in Connecticut communities. It grows at a 5.4% rate in the 2026 fiscal year and 5.5% in the 2027 fiscal year.

The budget invests $200 million in early childcare education, expanding access to Early Start CT childcare programs at affordable rates for families and allowing children receive high quality childcare from birth to five years old, also funding a health care subsidy for care providers.

Important provisions of the new budget include:

-A $250 tax refund for hundreds of thousands of workers with children through an expansion of the Earned Income Tax Credit program, which will benefit as many as 195,000 households – one out of every seven

-Projected state surpluses and continued investment in the state’s Rainy Day Fund

-A total of $2.4 billion in Education Cost Sharing grant investment, with $186 million of new investments for the two-year period; this includes “holding harmless” 81 towns that would have seen a decrease in ECS funding

-$80 million in additional special education cost savings and $75 million in additional new special education funding for a total of $442 million in special education excess cost spending

-Tax credits supporting refundable personal income tax credits for home daycare owners and farm investments

-Fully funding Medicaid, with more than $400 million in increased funding to support the program 900,000 Connecticut residents rely on

-Investing $7 million in Connecticut Foodshare, helping feed hungry Connecticut families

Investing $3 million in heating assistance as federal programs may see funding reductions