Stimulus bill may send state $400M for care

WASHINGTON — Connecticut may see over $400 million in additional federal aid under a coronavirus stimulus package that may be passed by the U.S. House of Representatives Friday.

If passed, the bill could direct about $440 million in additional Medicaid funding to Connecticut, according to recent estimates by the Center on Budget and Policy Priorities.

The money would be in addition to millions than could be made available to Connecticut after President Donald Trump on Friday declared a national emergency, a move that makes about $50 billion in emergency funds available to states, territories and local governments on the front lines of fighting the virus.

Trump made the emergency declaration in a lengthy speech and press conference in the White House Rose Garden, as his administration continued days of negotiations with House Democrats on an economic stimulus package to help workers and businesses during the crisis.

Trump tweeted his support Friday night for the House package that will provide free coronavirus testing to all who need it, offer paid sick days and medical leave and expand food assistance.

“This bill will follow my direction for free CoronaVirus tests, and paid sick leave for our impacted American workers,” Trump said.

Both the House bill, if passed, and Trump's emergency declaration will unleash a wave of federal funding and government supports for individuals, local governments and states dealing with the growing health crisis.

They come one week after Congress passed and Trump approved an $8.3 billion coronavirus spending package directing funding to state and local health authorities fighting the crisis and funding coronavirus vaccine and treatment development. That bill sent over $7 million to Connecticut already. The new federal Medicaid dollars possible under the House bill are important because states and the federal government split these Medicaid costs for low-income state residents. Under the bill, the federal government would pay a higher share.

States have worried that the growing coronavirus epidemic means they will be shouldering enormous health care expenses in 2020, when governmentsubsidized health care is already typically the largest source of state spending in a normal year.

CBPP estimate of $440 million for Connecticut is based on a formula under which the federal government would increase Medicaid payments to each state by 6.2 percentage points for the duration of the health crisis. The CBPP estimate assumes a one-year duration.

Connecticut will also see a direct injection of an estimated $18.5 million in emergency grants so they state can provide unemployment benefits to more people who lose a job during the coronavirus epidemic, according to estimates obtained by Hearst CT Insider. The proposed House bill provides a total of $1 billion in state grants for unemployment purposes in 2020.

Focused on providing relief to workers and businesses hit by the epidemic, the proposed bill will also ensure everyone can get free coronavirus testing — if it’s ordered by a doctor and available — and expand food assistance for children and families, while removing work requirements for the benefit. It would also allow furloughed workers to access more unemployment benefits.

On Capitol Hill, the most controversial part of the bill are key provisions for paid sick days and medical leave. House Democrats proposed proposed providing 14 days of paid sick leave to all workers whose employers do not offer the benefit and up to three months of paid medical leave for people who have longer illnesses or must care for the sick.

Rep. Rosa DeLauro, D-3, is the architect of leave provisions and has spent days in negotiations with House leaders over the language of the bill.

The testing, food assistance and leave programs — if approved — would all direct more federally funded help to eligible Connecticut residents.