House Bill No. 5402, also known as File No. 175, is a legislative proposal that seeks to amend the general statutes to exclude certain types of federal benefits and assistance payments from income calculations when determining eligibility for various state and municipal programs. The bill specifically targets benefits administered by the United States Department of Veterans Affairs and the United States Department of Defense, as well as temporary financial assistance under sections 27-125 and 27-140, which are granted to veterans or their surviving spouses. The bill includes insertions of new legal language and deletions of existing language, such as the removal of explicit exemptions for aid and attendance payments for seven programs. The bill's provisions are set to take effect on July 1, 2024, for most sections, and on October 1, 2024, for sections related to municipal property tax exemptions and a technical change.

The fiscal impact of HB5402 includes potential significant costs to the Department of Social Services (DSS), contract costs to the Department of Housing (DOH), and potential costs to the Department of Aging and Disability Services (ADS) due to increased eligibility for the Alzheimer’s Respite Program. Municipalities may also experience a reduction in their grand list, potentially affecting local property tax relief programs starting in FY 26. The bill's impact is dependent on the number of veterans participating in relief programs, the benefit amounts being disregarded, and the income limits of the programs. The bill also includes technical, conforming, and other changes that have no fiscal impact. The Veterans' and Military Affairs Committee has given a joint favorable report on the bill with a unanimous vote.

Statutes affected:
Raised Bill: 12-81l
VA Joint Favorable: 12-81l
File No. 175: 12-81l