A proposal from Gov. Ned Lamont’s administration would give Connecticut’s economic development agencies more flexibility to support larger business projects while addressing hiring challenges tied to federal visa rules.
Raised Bill 5244, to be discussed Tuesday during the Commerce Committee’s scheduled 11 a.m. meeting, would increase the cap on financial assistance that the Department of Economic and Community Development and Connecticut Innovations can provide to a single company or project without legislative approval.
Under current law, those agencies can award up to $10 million over a two-year period. The bill would raise that threshold to $25 million.
DECD Commissioner Daniel O’Keefe in written testimony about the proposal said the existing cap, set in 1994, has not kept pace with inflation and no longer reflects the cost of modern development projects.
“The existing $10 million cap, when adjusted for inflation, approximates $25 million,” O’Keefe said, adding that the change would help the state offer more competitive incentives to attract and retain businesses.
O’Keefe said the proposal would not increase overall state spending, but instead raises the per-project limit while keeping existing funding levels intact.
The bill would still require legislative approval for any financial assistance package exceeding $25 million.
In addition, the measure removes a separate cap that applied specifically to biotechnology projects, effectively standardizing limits across industries.
A second provision in the bill focuses on employment practices, creating a narrow exception to Connecticut’s prohibition on “employment promissory notes” — agreements that require workers to repay employers if they leave a job within a certain timeframe.
The proposed change is aimed at addressing a recent federal policy under the Trump administration that requires a $100,000 application fee for certain H-1B visas.
O’Keefe said Connecticut’s current law has made it difficult for employers to place H-1B workers in the state when companies cover that cost in exchange for a multi-year employment commitment.
As a result, some employers are placing those workers in other states that allow such arrangements, he said.
“This trend undermines Connecticut’s ability to attract highly skilled talent in critical sectors,” including technology, finance, bioscience and advanced manufacturing,” O’Keefe said in his testimony.
The bill would allow employers to require H-1B workers to repay visa application costs if they leave before a set period, while continuing to ban similar repayment requirements for most other employees.
