Skip to main content

How the CARES Act Federal Stimulus Affects Connecticut

8 April 2020

U.S. Congress Coronavirus Aid, Relief, and Economic Security (CARES) Act

Connecticut Allocation Update

April 8, 2020

On March 27, 2020, the United States Congress passed The Coronavirus Aid, Relief, and Economic Security Act (H.R. 748), also known as Stimulus 3.

This $2 trillion bipartisan coronavirus aid and economic relief agreement contains $330 billion in new funding to address the needs of the American people as we confront the coronavirus pandemic, including funding for affordable housing and homelessness assistance programs. This funding is in addition to the $150 billion Coronavirus Relief fund that will provide aid to state, local, and tribal governments passed previously this month.

Information continues to develop on how this funding will be distributed to the states. We have included anticipated Connecticut allocations in BOLD.

Highlights Include:

HUD & Department of Transportation:

The bill includes a total of $48.5 billion for transportation and housing activities. Targeted resources are directed to communities to help the 11 million low-income Americans living one paycheck away from homelessness by providing assistance to prevent eviction, to help the over half a million homeless individuals living on the streets find shelter or temporary housing, and for the most vulnerable, to self-quarantine and gain access to supportive services in order to diminish the risk of exposure. Highlights include:

  • Community Development Block Grant – $5 billion is provided for the Community Development Block Grant (CDBG) program to enable nearly 1,240 states, counties, and cities to rapidly respond to COVID-19 and the economic and housing impacts caused by it, including the expansion of community health facilities, child care centers, food banks, and senior services.
    • In Connecticut, $8.2 million is included for the state, and an additional $16 million is included for local governments.
  • Emergency Solutions Grants – $4 billion is included to assist individuals and families who are homeless or at risk of homelessness, and to support additional homeless assistance, prevention, and eviction prevention assistance. Eviction prevention activities including rapid rehousing, housing counseling, and rental deposit assistance will mitigate the adverse impacts of the pandemic on working families.
    • In Connecticut, Emergency Solutions Grants are funded at $16.3 million for the state, as well as an additional undetermined share of $2 billion for state and local governments based on need.
  • Rental Assistance Protections for Low-Income Americans – $3 billion is included for housing providers to help individuals currently assisted by HUD to safely remain in their homes or access temporary housing assistance in response to economic and housing disruptions caused by COVID-19, including $16.6 million in tenant-based rental assistance for Connecticut households, with an additional undetermined share of $400 million based on need. This funding will help low-income and working class Americans avoid evictions and minimize any impacts caused by loss of employment, and childcare, or other unforeseen circumstances related to COVID-19. This includes:
    • $1.935 billion to allow public housing agencies (PHAs) to keep over 3.2 million Section 8 voucher and public housing households stably housed.
      • Connecticut is expected to receive $10.7 million in funding.
    • $1 billion to allow the continuation of housing assistance contracts with private landlords for over 1.2 million Project-Based Section 8 households.
      • Connecticut will receive an undetermined share of this $1 billion.
    • $65 million for housing for the elderly and persons with disabilities for rental assistance, service coordinators, and support services for the more than 114,000 affordable households for the elderly and over 30,000 affordable households for low-income persons with disabilities; and
    • $65 million for Housing Opportunities for Persons with AIDS in order to maintain rental assistance and expand operational and administrative flexibilities for housing and supportive service providers.
      • Connecticut will receive $475,421, as well as a possible undetermined share of $10 million for certain grantees.

Other:

  • Supplemental Nutrition Assistance Program (Department of Agriculture) – The bill includes $15.5 billion in additional funding for SNAP to ensure all Americans, including seniors and children receive the food they need.
    • Connecticut is expected to receive $3.2 million in SNAP funding.
  • Justice Assistance Grants (Department of Justice) – Funding is used for a variety of criminal justice purposes including law enforcement, prevention and education, corrections, substance abuse, and mental health treatment programs, support for crime victims and witnesses and criminal justice policy planning and evaluation.
    • Connecticut is expected to receive funding of $5.9 million for the state and an additional $2.8 million for local governments.
  • Community Services Block Grant (Department of Children and Families) – The bill includes $1 billion for CSBG to help communities address the consequences of increasing unemployment and economic disruption.
    • Connecticut is expected to receive $11.9 million for CSBG.
  • Child Care Development Block Grant (Department of Children and Families) – CCDBG provides funding for the Care4Kids program through subsidized childcare, professional development, and technology supports.
    • Connecticut will receive $23.3 million in funding for CCDBG/Care4Kids.
  • Corona Relief Fund (Department of Treasury) – Provides $150 billion fund to states, territories, local and tribal governments to use for expenditures incurred due to the public health emergency, COVID-19. Connecticut is expected to receive $1.4 billion for the Corona Relief Fund, to be used for expenditures incurred.
    • Further details regarding the allocation of funds to Connecticut are forthcoming.

We will continue to do our best to provide important updates during this unprecedented time. Please reach out to info@pschousing.org with any questions.