CONNECTICUT — Gov. Ned Lamont has submitted a plan to Connecticut legislative leaders to withdraw nearly $168 million from a newly created Emergency State Response Reserve to offset recent federal funding delays and reductions affecting health and human services programs.

The proposal, totaling $167.9 million, marks the first time Lamont has sought to access the reserve, which was established in November under Special Act 25-1. The fund contains $500 million in state surplus dollars and was created in anticipation of potential federal funding reductions.

According to the administration, the proposed expenditures would help reduce health insurance costs for more than 150,000 residents, provide food assistance to more than 35,000 people and help keep approximately 3,500 individuals housed.

The plan includes funding to bolster food banks and pantries affected by changes to the Supplemental Nutrition Assistance Program, replace expiring enhanced health insurance subsidies linked to the Affordable Care Act, and provide interim support for homelessness prevention programs facing federal grant delays. It also would cover lost federal reimbursements for services provided by Planned Parenthood of Southern New England and expand capacity at the state’s 2-1-1 information and referral system.

“We should be supporting programs that increase access to food, healthcare, and homelessness prevention and response,” Lamont said in a statement. “Here in Connecticut we will stand behind them and do what we can to ensure that this most basic assistance remains available.”

Office of Policy and Management Interim Secretary Joshua Wojcik said the funding would help close gaps created by federal actions while supporting vulnerable residents.

“This is a responsible use of taxpayer resources to support our most vulnerable residents,” Wojcik said, adding that the administration continues to assess additional needs.

Under the proposal, $24.6 million would go to community food banks and pantries through June 2027, while $64.1 million would replace expiring enhanced premium tax credits for residents enrolled in Covered Connecticut. Another $50.8 million would address the loss of enhanced federal health insurance subsidies for certain income groups.

Additional allocations include $6.9 million for expiring homelessness grants and supportive housing vouchers, $10.4 million to replace lost federal funding for Planned Parenthood services and Title X programs, $4.7 million to expand 2-1-1 call center capacity and community outreach, and $1.5 million for administrative costs at the Department of Social Services.

As required by law, bipartisan legislative leaders have 24 hours after receiving the plan to review it and, if they choose, disapprove the proposed expenditures before funds are transferred.

If approved, $332 million would remain in the Emergency State Response Reserve. The governor is authorized to make withdrawals from the fund through Feb. 4, 2026, the opening day of the next regular legislative session.

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The U.S. Treasury asked major philanthropic donors to contribute to new investment accounts for children Wednesday as part of what Secretary Scott Bessent called a “50 State Challenge” to raise funds for the Trump Accounts program.

“The president is calling on our nation’s business leaders and philanthropic organizations to help us make America great again by securing the financial future of America’s children,” Bessent said in an address.

The billionaire hedge fund founder Ray Dalio, along with his wife Barbara, announced they would commit $250 to 300,000 children under 10 in Connecticut who live in ZIP codes where the median income is less than $150,000. Dalio founded the investment firm Bridgewater Associates and lives in Connecticut.

“I have been fortunate to live the American Dream. At an early age I was exposed to the stock market, and it changed my life,” Ray Dalio said in a statement, adding that he sees the accounts as putting children on a path toward financial independence.

The Dalios’ $75 million commitment follows the $6.25 billion pledge from billionaires Michael and Susan Dell earlier in December. The Dells promised to invest $250 in the accounts of 25 million children 10 and under who live in ZIP codes across the country that also have that median income.

The new investment accounts were created as part of President Donald Trump’s tax and spending legislation, passed over the summer. Under the new law, the U.S. Department of the Treasury will deposit $1,000 into the investment accounts of children born during Trump’s second term.

The Treasury has not yet launched the new accounts.

“Starting on July 4th, our nation’s 250th anniversary, parents, family members, employers and friends will be able to contribute up to $5,000 to each Trump Account each year,” Bessent said Wednesday.

Brad Gerstner, a venture capitalist, who championed the accounts, said the Treasury will create an account for every child in the U.S. who has a Social Security number but private companies will eventually administer the accounts. Parents or guardians will have to claim the accounts on behalf of their children. For children born before Trump came to office and who don’t qualify for the funds from the Dells and the Dalios, their families can open and fund their own Trump Account if they choose.

Money in the accounts must be invested in an index fund that tracks the overall stock market. When the children turn 18, they can withdraw the funds to put toward their education, to buy a home or to start a business.

Bessent said employers, family members and philanthropists can put funds into the accounts and that the administration hopes states will also eventually set up programs to invest in the accounts. Companies including Visa and BlackRock have also pledged to contribute in some way to the accounts of their employees’ children.

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Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.