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Connecticut regulates legislatively directed funds and restricts Other Expenses grants

Original title: AN ACT REQUIRING TRANSPARENCY AND ADDITIONAL OVERSIGHT OF THE DISTRIBUTION OF CERTAIN LEGISLATIVELY DIRECTED FUNDS AND APPROPRIATIONS FOR OTHER EXPENSES.

Last action · May 19, 2026: Signed by the GovernorSponsors: REQUEST OF THE GOVERNOR PURSUANT TO JOINT RULE 9 and 37 others

Introduced
Committee
Floor Vote
Passed
Law

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Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Does

Connecticut law now requires the Office of Policy and Management to establish uniform oversight, distribution rules, and reporting for and prohibits state agencies from using '' appropriations for grants or pass-through payments without specific legislative acts.

Why it matters

State agencies, municipalities, nonprofits, and community-based organizations receiving state funds face new disbursement schedules, advance payment limits, reimbursement documentation rules, and mandatory annual reporting.

Background
  • House Bill 5039 was introduced pursuant to a request of the Governor under joint rule 9 to implement budget recommendations. context
  • Legislatively directed funds are targeted state appropriations often colloquially referred to as earmarks or community project grants allocated by the General Assembly. context
  • The Office of Policy and Management serves as the Governor's principal staff agency responsible for formulating and implementing the state budget. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

recipients of legislatively directed funds

Recipients must execute written agreements, comply with standardized reimbursement and documentation procedures, and submit annual utilization reports.

Directly affected

state agencies

State agencies must administer funds according to new OPM policies, participate in pre-award conferences, process reimbursements within 45 days, and adhere to Other Expenses restrictions.

Directly affected

nonprofit organizations

Nonprofits receiving state funds are subject to standardized reimbursement rules designed to avoid administrative barriers while ensuring oversight.

Directly affected

Auditors of Public Accounts

The auditors must annually review state agency Other Expenses expenditures and report any grant-like expenses to the Secretary and legislative committees.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What are 'legislatively directed funds' under this law?
They are appropriations authorized by public or special act of the General Assembly for a specific amount of money for a contract, grant, loan, or economic assistance to a specific entity, excluding emergencies, state agencies, formula grants, and State Bond Commission funds.
How are fund disbursements handled for amounts over $150,000?
The administering state agency may provide an initial or advance payment, with the remaining balance distributed in subsequent payments or on a reimbursement basis upon documentation of eligible expenditures.
Can state agencies use operating funds for grants?
No, state agencies are prohibited from using funds appropriated for for grants or pass-through payments unless specifically authorized by a public or special act enacted by the General Assembly.

What else do you want to know?

News Coverage

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Where This Stands

Current status: Signed into law.

Procedural history

22 actions
  1. May 19, 2026Governor of ConnecticutEnrolled
    Signed by the Governor
  2. May 15, 2026Governor of Connecticut
    Transmitted by Secretary of the State to Governor
  3. May 15, 2026Connecticut General Assembly
    Transmitted to the Secretary of State
  4. May 14, 2026Connecticut General AssemblyEnrolled
    Public Act 26-27
  5. May 4, 2026Connecticut General Assembly
    In Concurrence
  6. May 4, 2026HouseFloor
    Senate Passed as Amended by House Amendment Schedule A
Show 16 earlier actions
  1. May 4, 2026Senate
    Senate Rejected Senate Amendment Schedule A 5896
  2. May 4, 2026HouseFloor
    Senate Adopted House Amendment Schedule A
  3. Apr 13, 2026Connecticut General Assembly
    File Number 605
  4. Apr 13, 2026Senate
    Senate Calendar Number 367
  5. Apr 13, 2026Senate
    Favorable Report, Tabled for the Calendar, Senate
  6. Apr 9, 2026HouseFloor
    House Passed as Amended by House Amendment Schedule A
  7. Apr 9, 2026HouseFloor
    House Adopted House Amendment Schedule A 3954
  8. Mar 18, 2026Connecticut General Assembly
    File Number 66
  9. Mar 18, 2026House
    House Calendar Number 71
  10. Mar 18, 2026House
    Favorable Report, Tabled for the Calendar, House
  11. Mar 18, 2026Connecticut General Assembly
    Reported Out of Legislative Commissioners' Office
  12. Mar 18, 2026Connecticut General Assembly
    Referred to Office of Legislative Research and Office of Fiscal Analysis 03/23/26 5:00 PM
  13. Mar 17, 2026Connecticut General Assembly
    Filed with Legislative Commissioners' Office
  14. Mar 17, 2026Connecticut General Assembly
    Joint Favorable
  15. Feb 20, 2026Connecticut General Assembly
    Public Hearing 02/24
  16. Feb 5, 2026Connecticut General AssemblyCommittee
    Referred to Joint Committee on Government Oversight

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

REQUEST OF THE GOVERNOR PURSUANT TO JOINT RULE 9Primary sponsorNo profile match
Show 33 more sponsors
Rep. Stephen R. Meskers, 150th Dist.CosponsorNo profile match

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Shift from Unregulated Pass-Throughs to Strict OPM Oversight

The legislation ends informal or ad-hoc grant distributions through general operating accounts by mandating rigorous OPM policies, written agreements, and public database tracking.

Connected Entities

Black and Puerto Rican Caucus, Judicial Department, General Assembly and 5 more
OrganizationBlack and Puerto Rican Caucus“Chairperson and vice-chairperson receive notifications regarding policy and proc”Map →
OrganizationJudicial Department“Excluded from specific legislatively directed funds and recipient definitions.”Map →
OrganizationGeneral Assembly“Authorizes appropriations and receives reports on state funds.”Map →
OrganizationOffice of Policy and Management“Administers policies, procedures, and databases for legislatively directed funds”Map →
OrganizationLegislative Department“Excluded from specific legislatively directed funds and recipient definitions.”Map →
OrganizationState Bond Commission“Authorizes funds pursuant to section 3-20 of the general statutes.”Map →
OrganizationAuditors of Public Accounts“Review state agency Other Expenses expenditures and report inconsistencies.”Map →
OrganizationOffice of Fiscal Analysis“Issues Connecticut State Budget Agency Sheets and consults on reclassification p”Map →

Sources

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz35
    Current news / social attention level

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