Today, State Senator Norm Needleman (D-Essex) joined the State Senate’s approval of the 2026-27 biennial state budget. This budget, which passed by a 25-11 vote, invests significant amounts in education and childcare statewide, invests in families through an increase to the Earned Income Tax Credit and provides significant investments to local communities, including $2,418,015 in new support for the 33rd Senate District in the two-year period. That support includes enhanced education investments, special education funding and municipal project aid.
“As we wait to see the impact the federal budget will have on our nation and our communities, this state budget offers significant investments in important systems and retains effective programs our communities rely on,” said Sen. Needleman. “I’m heartened to invest in early child care for countless families feeling financial pressure and to provide relief to working parents in our communities statewide. After months of hard work, this budget comes with no new taxes and retains the state’s fiscal responsibility, all while providing our region with new funding supporting our towns.”
The balanced $55.16 billion two-year budget does not increase taxes, reduces state costs and maintains the state’s 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 parts of the new budget include:
-A $250 tax refund for tens of thousands of workers with children through an expansion of the Earned Income Tax Credit program, which will benefit as many as 195,000 children
-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
-Investing $76 million in nonprofits in the second year of the budget to support worker wages
-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
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