A construction crane looms above a construction site under a blue sky.

Connecticut to issue $9.7B in bonds for statewide infrastructure projects

June 18, 2025

Connecticut is set to invest nearly $10 billion in infrastructure improvements over the next two years, following overwhelming legislative approval of a $9.7 billion bond package. The funding will target everything from crumbling bridges to school renovations, with $4.5 billion authorized for fiscal year 2026 and $5.1 billion for fiscal year 2027. 

The state will raise the funds by selling bonds to investors. However, a separate State Bond Commission still needs to approve each individual project, so not every authorized dollar is guaranteed to be spent. 

Traditional infrastructure dominates the spending plan, accounting for more than 60% of the package with about $2.8 billion allocated each fiscal year. This includes school construction, transportation infrastructure and clean water projects. 

For education infrastructure, the package introduces a new $60 million District Repair and Improvement Project that will provide $30 million annually for small-scale renovations across K-12 school districts. Higher education will receive $5 million to advance the planned renovation of Gampel Pavilion at the University of Connecticut. 

The biggest single investment goes to transportation infrastructure. The most substantial allocation provides over $562 million for public transportation modernization, including bus and rail facilities, equipment and related projects. Connecticut’s “Fix-it-First” programs will receive nearly $812 million to address aging infrastructure, with bridge repairs accounting for $458.6 million and road repairs receiving $352.6 million over the two-year period. 

The second-largest funding category targets housing and homelessness, with slightly more than $1 billion allocated over the two-year period. The package allocates $400 million for flexible housing, which includes affordable units built in mixed-income developments and $12 million for rapid rehousing programs that help homeless individuals secure housing quickly. 

Rounding out the major investments are specialized infrastructure and security projects. These include $50 million to replace Whiting Forensic Hospital and $50 million to assist Eastern Connecticut homeowners with crumbling foundations. Child care facility construction will receive $23 million, while security grants for places of worship and nonprofits will total $20 million over the two-year period. 

The bond package comes as Connecticut maintains a record $4.1 billion emergency reserve and projects a $2.4 billion budget surplus for the current fiscal year. While infrastructure funding relies primarily on borrowed funds, the state uses cash to support current operational expenses. 


Photo by Engin Akyurt from Pexels

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