CT Democrats call for ‘fiscal emergency’ in response to deep Trump cuts
Connecticut could lose up to $1 billion in federal funding for schools, health care and other critical services. A "fiscal emergency" would let lawmakers dip into budget reserves and suspend pension payments.
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Top Democrats urged Gov. Ned Lamont to declare a “fiscal emergency” in response to massive federal funding cuts from the Trump administration.
The controversial move could suspend the state’s “fiscal guardrails” and pension payments.
Without drastic action, Democrats said Connecticut could experience catastrophic impacts. But Republicans blasted the proposal as an excuse to spend more money.
TRUMP CUTS
On Day 1, President Donald Trump promised massive cuts in federal spending.
“The inflation crisis was caused by massive overspending,” Trump said during his inauguration speech.
Since then, the White House has followed through, slashing billions on everything from food banks to libraries. While the potential impact on Connecticut is unclear, Trump eliminated $150 million just in public health grants.
On Tuesday, House Speaker Matt Ritter (D-Hartford) said the cuts could blow a huge hole in Connecticut's budget.
“We really don’t know what’s going to happen. And if it was Joe Biden in The White House, I'd say the same thing,” he told reporters. “There’s so much that we don’t know that’s coming at us at a daily basis, that sometimes the best thing you can do is just pause.”
Advocacy groups said the federal cuts could devastate the state's poorest residents.
“Working class and middle class people are in a cost of living crisis, and the fiscally responsible, smart thing for state leaders to do is to act now," said Melvin Medina with the Connecticut Project Action Fund. “People can’t afford for our state to sit by while D.C. slashes funding for essential services. State leaders need to look at the storm of uncertainty from the federal government and make a responsive budget."
“FISCAL EMERGENCY”
Declaring a “fiscal emergency” would let Connecticut dip into its Budget Reserve Fund – estimated to be around $5.6 billion this year – and suspend around $1.4 billion in pension payments.
“We have a responsibility to respond to federal actions, and they're causing a great deal of uncertainty,” said state Rep. Jason Rojas (D-East Hartford), the Connecticut House majority leader.
Republicans blasted the proposal, calling it an end-run around the state’s “fiscal guardrails” that limit spending.
“The Democrats are setting us up for tax increases and more spending because they’re ignoring their own fiscal health they could be fixing right now,” said House GOP leader Vin Candelora (R-North Branford). “If we are faced with a situation down the road that we need to use some of that Rainy Day Fund, yes, I think that is something that we could do. But to suggest that we should start dismantling the guardrails, and not allow the emergency process to go into place, is disingenuous.”
Republicans in the state Senate urged Lamont to resist the calls from his own party.
“Stand strong against your fellow Democrats who want to break the guardrails. Stand strong against the job crushing tax hikes that this will cause,” said Senate GOP leader Stephen Harding (R-Brookfield). “Connecticut needs you to lead. No more historic tax hikes.”
LAMONT RESPONDS
Lamont has stood by the state’s spending caps, calling them “sacrosanct” earlier this year.
The governor said he's not ready to declare an emergency yet, but agrees that the situation is serious.
“The federal government represents about $12 billion of our revenue,” Lamont said on Monday. “So if they cut even 10% or 20% of that, there's no way – no way – we can make up that shortfall.”
None of this is a done deal yet. Democrats met with Lamont on Wednesday afternoon to discuss how to proceed.
"We're not trying to rattle markets or alarm people,” Ritter said. “I think any state in our position would do the same thing.”
