New Laws Effective July 1, 2026
Key Takeaways
- Takes effect July 1, 2026: veterans provisions
- Expanded oversight of the Department of Children and Families and adds foster caregiver grant support
- More transparency for earmarks and approval for subgranting government-directed funds
- Updated sales tax rules for school supplies and expands Sales Tax Free Week exemptions
Several new laws will take effect July 1st that could have an impact on you, your business, or our community. I have highlighted some of them below.
We passed an omnibus bill to help veterans, with several of the provisions taking effect soon. One creates the Military Department emergency response account, administered by the adjutant general, to cover state costs during certain emergencies. It also establishes state income tax deductions for compensation for an honor guard detail at a veteran’s funeral.
One important bill we passed this session would bring more oversight to the state Department of Children and Families. The legislation also included provisions to establish grant programs for foster parents to cover the cost of afterschool programs for children in their care and for certain fictive kin (unrelated, trusted adult) caregivers to cover the cost of clothing, food, safety-related purchases, and other necessities for children in their care after an emergency placement.
Another bill taking effect next month is one to bring more transparency and accountability to government spending. Entities receiving legislatively directed funds (known as earmarks) must be named, along with an explanation given of what the money will be used for. Neither are currently required. Any group subgranting the money to another entity must also get approval from state officials before doing so.
Connecticut’s 6.35% sales tax will no longer apply to “nonelectronic school supplies” under the budget adjustment bill we passed. This includes, but is not limited to, things like binders, composition books, crayons, erasers, folders, glue, highlighters, index cards, lunch boxes, markers, notebooks, pencils, rulers, and scissors.
We also expanded the amount of money on clothing and footwear that's exempt during Sales Tax Free Week, which takes place each August. The current exemption which applies to items under $100 will increase to under $300, and will also now include backpacks and cleated shoes.
Other major acts include:
An Act Concerning Oversight of Efforts to Prevent Human Trafficking
An Act Concerning Online Safety
An Act Concerning State-Wide Fire Protection
An expanded list of those that will take effect on July 1, along with summaries, can be accessed here.