Substitute House Bill No. 5540 seeks to amend the temporary family assistance program managed by the Department of Social Services by introducing a state-funded component to avoid federal penalties while maintaining eligibility criteria consistent with the federal program. The bill repeals Section 17b-112 of the 2026 supplement to the general statutes and replaces it with updated language that clarifies the definition of "family" and eligibility conditions. Key provisions include exemptions from time-limited benefits for families facing specific hardships, the ability to petition for extensions of benefits, and the disregard of a portion of earned income when determining eligibility. Additionally, starting October 1, 2023, families will not be denied assistance based on assets unless they exceed $6,000, with a complete disregard of asset-based eligibility criteria beginning July 1, 2027.

The bill also establishes a two-year pilot program aimed at addressing "benefits cliffs" for 200 households receiving public assistance, which will be developed in collaboration with various state departments. This program will provide transitional benefits for families whose earnings exceed the federal poverty level, allowing them to retain 100% of their previous benefits for six months, followed by a gradual reduction. The bill mandates referrals to child care subsidy programs and includes provisions for disregarding certain financial assistance received by family members in approved programs. Furthermore, it introduces an annual cost-of-living adjustment for temporary family assistance benefits and ensures that families are informed about available services as they transition out of assistance. The estimated costs for implementing these changes are projected to be at least $2.6 million in the first year.

Statutes affected:
Raised Bill:
HS Joint Favorable:
File No. 444: