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SB00388 • 2026

AN ACT CONCERNING THE MASHANTUCKET PEQUOT AND MOHEGAN FUND.

AN ACT CONCERNING THE MASHANTUCKET PEQUOT AND MOHEGAN FUND.

Budget Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Appropriations Committee
Last action
2026-04-15
Official status
File Number 647
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Restoring Funding for Towns from the Mashantucket Pequot and Mohegan Fund

This law keeps current grant levels through fiscal year 2027 and increases the total annual amount to $152.4 million starting in fiscal year 2028.

What This Bill Does

  • Keeps funding for town grants at current levels through June 30, 2027.
  • Increases the total annual grant amount transferred from the General Fund to $152,378,676 starting July 1, 2028.
  • Requires money received from tribal agreements to be deposited into the state's General Fund before being moved to the Mashantucket Pequot and Mohegan Fund.
  • Sets up three payment dates each year for town grants in December, March, and June.
  • Prevents these transfers from being reduced unless the Governor submits a certification of an emergency to the General Assembly.

Who It Names or Affects

  • The Office of Policy and Management
  • Connecticut towns that receive state grants
  • The Mashantucket Pequot Tribe and Mohegan Tribe

Terms To Know

Mashantucket Pequot and Mohegan Fund
A separate, nonlapsing account in the state budget that holds money from tribal agreements to pay grants to towns.
General Fund
The main pool of state revenue where funds are deposited before being transferred into specific accounts like this fund.

Limits and Unknowns

  • If the total grants exceed available money in a year, each town's grant will be reduced by the same percentage.
  • Individual town amounts depend on calculations based on factors such as population and property value.

Bill History

  1. 2026-04-15 LCO

    Reported Out of Legislative Commissioners' Office

  2. 2026-04-15 Connecticut General Assembly

    Favorable Report, Tabled for the Calendar, Senate

  3. 2026-04-15 Connecticut General Assembly

    Senate Calendar Number 410

  4. 2026-04-15 LCO

    File Number 647

  5. 2026-04-09 LCO

    Referred to Office of Legislative Research and Office of Fiscal Analysis 04/14/26 5:00 PM

  6. 2026-04-02 LCO

    Filed with Legislative Commissioners' Office

  7. 2026-04-01 APP

    Joint Favorable Substitute

  8. 2026-03-06 Connecticut General Assembly

    Public Hearing 03/12

  9. 2026-02-27 Connecticut General Assembly

    Referred to Joint Committee on Appropriations

Official Summary Text

To restore the Mashantucket Pequot and Mohegan Fund to its original intent of funding all towns.

Current Bill Text

Read the full stored bill text
Senate
sSB388 / File No. 647 1

General Assembly File No. 647
February Session, 2026 Substitute Senate Bill No. 388

Senate, April 15, 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 substitute bill ought to pass.

AN ACT CONCERNING THE MASHANTUCKET PEQUOT AND
MOHEGAN FUND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 3 -55i of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2026): 2
(a) (1) There is established the "Mashantucket Pequot and Mohegan 3
Fund" which shall be a separate nonlapsing fund. All funds received by 4
the state of Connecticut from the Mashantucket Pequot Tribe pursuant 5
to the joint memorandum of understanding entered into by and 6
between the state and the [tribe] Mashantucket Pequot Tribe on January 7
13, 1993, as amended on April 30, 1993, and any successor thereto, or 8
from the Mohegan Tribe of Indians of Connecticut pursuant to the 9
memorandum of understanding entered into by and between the state 10
and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as 11
amended from time to time, shall be deposited in the General Fund. 12
[During the fiscal year] 13
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sSB388 / File No. 647 2

(2) For the fiscal years ending June 30, 2015, [and each fiscal year 14
thereafter] to June 30, 2027, inclusive , from the funds received by the 15
state from the tribe pursuant to said joint memorandum of 16
understanding, as amended, and any successor thereto, an amount 17
equal to the appropriation to the Mashantucket Pequot and Mohegan 18
Fund for Grants to Towns shall be transferred to the Mashantucket 19
Pequot and Mohegan Fund and shall be distributed by the Office of 20
Policy and Management, during said fiscal [year] years, in accordance 21
with the provisions of section 3 -55j. For the fiscal year ending June 30, 22
2028, and each fiscal year thereafter, one hundred fifty-two million three 23
hundred seventy-eight thousand six hundred seventy-six dollars of the 24
funds deposited in the General Fund pursuant to subdivision (1) of this 25
subsection shall be transferred from the General Fund to the 26
Mashantucket Pequot and Mohegan Fund. During each fiscal year, the 27
Office of Policy and Management shall make distributions of any funds 28
transferred to the Mashantucket Pequot and Mohegan Fund pursuant 29
to this section in accordance with the provisions of section 3 -55j. The 30
amount of the grant payable to each municipality during any fiscal year, 31
in accordance with [said] section 3-55j, shall be reduced proportionately 32
if the total of such grants exceeds the amount of funds available for such 33
year. The grant shall be paid in three installments as follows: The 34
Secretary of the Office of Policy and Management shall, annually, not 35
later than the fifteenth day of December, the fifteenth day of March and 36
the fifteenth day of June certify to the Comptroller the amount due each 37
municipality under the provisions of section 3 -55j and the Comptroller 38
shall draw an order on the Treasurer on or before the fifth business day 39
following the fifteenth day of December, the fifth business day 40
following the fifteenth day of March and the fifth business day 41
following the fifteenth day of June and the Treasurer shall pay the 42
amount thereof to such municipality on or before the first day of 43
January, the first day of April and the thirtieth day of June. 44
(b) The transfers from the General Fund to the Mashantucket Pequot 45
and Mohegan Fund required by subsection (a) of this section shall not 46
be reduced except upon submission to the General Assembly by the 47
Governor of a certification of an emergency requiring such reduction. 48
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sSB388 / File No. 647 3

This act shall take effect as follows and shall amend the following
sections:

Section 1 July 1, 2026 3-55i

APP Joint Favorable Subst.

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sSB388 / File No. 647 4

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 $
Policy & Mgmt., Off. GF - Cost None 99.8 million
Note: GF=General Fund

Municipal Impact:
Municipalities Effect FY 27 $ FY 28 $
Various Municipalities Revenue
Gain
None 99.8 million

Explanation
The bill results in an annual revenue gain to various municipalities
beginning in FY 28 as the Mashantucket Pequot and Mohegan Grants to
Towns will increase by approximately $99.8 million, to a total of $152.38
million (in FY 28 and annually thereafter). 1 There will be a
corresponding cost to the General Fund beginning in FY 28 to provide
the funds necessary for this grant increase. 2 Currently, 124 towns
receive such grants.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.

1 In FY 27, this grant is estimated to be $52.5 million.
2 Current law requires the amount equal to the grant total to be transferred from the
General Fund to the Mashantucket Pequot and Mohegan Fund. The funds are then
distributed by the Office of Policy and Management to towns.
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sSB388 / File No. 647 5

OFA Bill Analysis
SB 388

AN ACT CONCERNING THE MASHANTUCKET PEQUOT AND
MOHEGAN FUND.

SUMMARY:
The bill makes the following changes regarding the Mashantucket
Pequot and Mohegan grant.
• Maintains current funding levels through FY 27.
• Increases the grant total by approximately $99.8 million for a new
total of $152.4 million beginning in FY 28.
• Prevents this grant amount from being reduced except by
submission to the General Assembly by the Governor of an
emergency certification.
EFFECTIVE DATE: July 1, 2026
Background
Mashantucket Pequot and Mohegan Grant
PA 93-388 established the Mashantucket Pequot and Mohegan Fund.
This fund is a separate, nonlapsing fund containing revenue from casino
gaming. Casino gaming revenue is deposited into the General Fund and
then transferred to the fund, in an amount equal to the grants to be
distributed. Money in this fund is distributed to m unicipalities
according to various factors, including the value of state -owned
property, private college and general hospitals, population, equalized
net grand list, and per capita income. Host towns receive additional
payments, and three tribes also receive grants.
Currently, towns receive the same Pequot grant they received in FY
20. Since FY 16, the total grant amount has ranged from $49.9 million to
sSB388 File No. 647

sSB388 / File No. 647 6

$61.7 million. In FY 26, the appropriation for this grant is approximately
$52.5 million.
Under the current distribution, 45 towns do not receive any funds
from this grant.
COMMITTEE ACTION
Appropriations Committee
Joint Favorable Substitute
Yea 51 Nay 0 (04/01/2026)