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Nonprofit Alliance Praises CT Congressional Delegation for American Rescue Plan
Funds will help hundreds of community nonprofits across the state

(Hartford, CT) — CT Community Nonprofit Alliance, which represents community-based human service, arts, and cultural programs across the state, today thanked Connecticut’s Congressional delegation for their leadership and support for the passage of the $1.9 trillion American Rescue Plan that will bring desperately needed funding for nonprofit programs across the state.

Gian Carl Casa, President & CEO of the Alliance, said almost half of the $10 billion coming to Connecticut will support nonprofit services, which have been underfunded for more than a decade and further stressed with during the coronavirus pandemic.

“Connecticut’s Congressional delegation was been out in front advocating for the federal rescue package and we thank them for their leadership,” Casa said. “The influx of federal funding combined with the state’s strong Rainy Day Fund, and more than $400 million in unexpended Medicaid funds, puts the state in the unique position to use those funds to directly support programs that have struggled with long term inadequate funding and the financial pressures of the pandemic, which is great news for nonprofits across the state.”

Casa noted that the federal funding is particularly welcome because it would not be subject to the state’s budget spending cap.

“The federal dollars can go directly to programs in need without complicating the state budgeting process,” Casa said. “Congress intended to help Americans across the country who have struggled over the past year and we can make that happen here in Connecticut.”

Connecticut will receive an estimated $4.2 billion in direct aid to state and local government, with a substantial portion in an enhanced federal match (FFP) the state gets from Medicaid expenditures.

Under previously enacted federal law, Connecticut Medicaid expenditures were enhanced by 6.2 percent enhancement, which $233 million matching funds in the past fiscal year and contributed to a substantial surplus in the Medicaid account for FY20 and more than $450 for the current fiscal year.

The American Rescue Plan Act also includes increases the match for certain community residential services by an additional ten percent. Because the state currently spends $650 million in residential services which means the total enhanced federal match will net the state $105 million in federal dollars.