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Since the end of legislative session, we have been working alongside our state agency partners to confirm the specifics of key investments in the homeless response system.
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Session Overview: At the end of the 2025 legislative session, the budget contained a $13.2 million increase for FY26 and a $26.4 million increase for FY27 in the Department of Housing (DOH) Housing and Homeless Services line item.
We have confirmed that these numbers include $3.5 million in FY26 and $5 million in FY27 for cold weather emergency services. While we are grateful for the guarantee of funding for these critical services, there is a remaining gap of $1.5 million to meet the need in winter.
The final budget also includes:
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$3.5 million in FY26 and $5 million in FY27 for the Coordinated Access Network hubs.
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$613,356 in both FY26 and FY27 to support annualization of the private provider cost of living adjustment (COLA)
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$6 million in bonding for Rapid Re-Housing (RRH)
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$15 million for capital improvements to shelter (for existing facilities)
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$800 million in investments to produce more housing
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$100 million in funding for Time to Own, for an estimated 6,300 families to become first time homeowners
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300 studios to house those with complex cases
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Several grants specifically appropriated for individual shelters
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$6.7 million in FY27 for new Rental Assistance Program (RAP) vouchers, which will fund 212 new HeadStart on Housing vouchers, 77 new DDS vouchers, and 250 new vouchers for older adults and people with disabilities.
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In addition to the Department of Housing, the Department of Mental Health and Addiction Services (DMHAS) will receive $1.39 million in FY26 and $1.95 million in FY27 in increased funding for the Housing Supports and Services line item.
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Collectively, all community nonprofit services are set to receive a COLA of $50 million in FY26 (a 2.4% increase over FY24) and a further $76 million in FY27 (which includes annualization of FY26 and adds 3%).
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Finally, in exciting news for all of Connecticut’s nonprofit human services providers, the Governor has signed S.B. 1358 into law! S.B. 1358, An Act Concerning Equitable Compensation for State-Contracted Nonprofit Human Services Providers, will index nonprofit funding in the state budget to inflation each year.
You can review the full breakdown of funding for all nonprofit human services providers in the CT Nonprofit Alliance’s Final Budget Analysis here.
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