AN ACT CONCERNING THE PARAEDUCATOR HEALTH CARE SUBSIDY PROGRAM.

Senate
SB223 / File No. 695 1

General Assembly File No. 695
February Session, 2026 Senate Bill No. 223

Senate, April 20, 2026

The Committee on Appropriations reported through SEN.
OSTEN of the 19th Dist., Chairperson of the Committee on the
part of the Senate, that the bill ought to pass.

AN ACT CONCERNING THE PARAEDUCATOR HEALTH CARE
SUBSIDY PROGRAM.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 203 of public act 23-204, as amended by section 124 1
of public act 24 -81, is repealed and the following is substituted in lieu 2
thereof (Effective July 1, 2026): 3
(a) As used in this section: 4
(1) "Health benefit plan" has the same meaning as provided in section 5
38a-1080 of the general statutes; [,] and 6
(2) "Partnership plan" has the same meaning as provided in section 3-7
123aaa of the general statutes. 8
(b) For the fiscal [years] year ending [June 30, 2024, and June 30, 2025] 9
June 30, 2027, and each fiscal year thereafter , the Comptroller shall 10
establish a program to provide a subsidy, within available 11
appropriations, to each paraeducator who (1) opens a health savings 12
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account, pursuant to Section 223 of the Internal Revenue Code of 1986, 13
or any subsequent corresponding internal revenue code of the United 14
States, as amended from time to time, or is eligible for Medicare and 15
enrolls in a high deductible health plan, and (2) is employed [by a local 16
or regional board of education] in a public school. Such subsidy shall be 17
in an amount up to a certain percentage, as specified by the Comptroller, 18
of the deductible for the health plan in which such paraeducator is 19
enrolled, minus the amount of any employer contributions to a health 20
savings account or health reimbursement account, and not exceeding an 21
amount specified by the Comptroller. No paraeducator may receive 22
more than one subsidy pursuant to this section. The Comptroller may 23
work with the local or regional board of education that employs such 24
paraeducator to distribute such subsidy. 25
(c) For the fiscal year ending [June 30, 2025] June 30, 2027, and each 26
fiscal year thereafter , the Comptroller shall establish a program to 27
provide a subsidy, from any funds appropriated for such purpose, to 28
each local or regional board of education that provides coverage to 29
paraeducators and their dependents under a health benefit plan or a 30
partnership plan for such fiscal year or any portion thereof. Such 31
subsidy shall be (1) in an amount not more than ten per cent of the 32
aggregate premium cost, inclusive of the employee and employer 33
shares, paid by such board of education for coverage under such health 34
benefit plan or partnership plan, divided by the number of 35
paraeducators employed by such board of education and enrolled in 36
health coverage, and (2) used to offset the employee's share of such 37
premium that is deducted from the payroll check of each paraeducator 38
employed by such board of education during any pay period during 39
such fiscal year. The provisions of this subsection shall not apply to a 40
local or regional board of education that provides coverage under a high 41
deductible health plan, as that term is used in subsection (f) of section 42
38a-520 of the general statutes. Pursuant to the provisions of subsection 43
(b) of section 10 -66dd of the general statutes, the provisions of this 44
section shall apply to charter schools. 45
[(d) The Comptroller and the Commissioner of Education shall enter 46
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into a memorandum of understanding, in accordance with the 47
provisions of section 4 -97b of the general statutes, to allow the 48
Comptroller to utilize the sum of $5,000,000 that is appropriated to the 49
Department of Education for assistance to paraeducators pursuant to 50
section 1 of public act 23 -204 to implement the provisions of this 51
section.] 52
This act shall take effect as follows and shall amend the following
sections:

Section 1 July 1, 2026 PA 23-204, Sec. 203

ED Joint Favorable C/R APP
APP Joint Favorable

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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Comptroller GF - Cost 10 million 10 million
Note: GF=General Fund

Municipal Impact: None
Explanation
The bill extends the paraeducator health care subsidy program
within the Office of the State Comptroller (OSC) from FY 27 onwards
and expands eligibility to paraeducators employed in charter schools,
resulting in an annual cost of $10 million.1
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.

1 Funding for this program ranged between $5 to $10 million beginning in FY 24. The
FY 26 and 27 Budget appropriated $10 million to this program within OSC. Subsidies
were dispersed subject to fund availability.
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OLR Bill Analysis
SB 223

AN ACT CONCERNING THE PARAEDUCATOR HEALTH CARE
SUBSIDY PROGRAM.

SUMMARY
This bill makes permanent t wo health care subsidy program s for
paraeducators employed by local or regional board s of education and
expands the program s to include paraeducators at charter schools.
Under current law, the programs expired on June 30, 2025 (but the state
budget included funds for the comptroller to continue the subsidies for
FY 26).
One program provides subsidies for paraeducators who (1) open a
health savings account (HSA) or (2) are Medicare -eligible and enroll in
a high deductible health plan (HDHP). The subsidy covers a percentage,
determined by the comptroller, of the deductible for the paraeducator’s
health plan minus the amount of any employer contributions to an HSA
or health reimbursement account.
The second program provides subsidies to school boards that provide
paraeducators coverage under an employer health plan (generally, a
health insurance plan) or the partnership plan (a health benefit plan the
comptroller offers to nonstate public employers and certain others). The
subsidy covers up to 10% of the aggregate premium cost (including both
the employee and employer shares), paid by the board of education for
the coverage, divided by the number of paraeducators the board
employs who are enrolled in the health plan. The subsidy must be used
to offset the paraeducators’ share of the premium.
The bill also eliminates an obsolete provision.
EFFECTIVE DATE: July 1, 2026
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COMMITTEE ACTION
Education Committee
Joint Favorable Change of Reference - APP
Yea 42 Nay 2 (02/27/2026)

Appropriations Committee
Joint Favorable
Yea 42 Nay 9 (04/01/2026)