Submitted by Office of State Sen. Norm Needleman
(September 7, 2025) — Connecticut’s minimum wage, which is tied to the federal employment cost index, will increase by about 60 cents on January 1, 2026 rising from $16.35 per hour to $16.94. The change accounts for the employment cost index growing by about 3.6% year-over-year from July 1, 2024 to June 30, 2025.
Under the change, pending other states’ announcements through the end of 2025, Connecticut will have one of the highest minimum wages in the country. Only the states of California and Washington offer higher hourly pay than Connecticut’s current $16.35.
State Budget Surplus Increases
State Comptroller Sean Scanlon reports that early projections indicate a $350 million surplus in the 2026 General Fund and a Special Transportation Fund surplus of $19.6 million. The new projections come as a result of increased revenue, which Scanlon said will allow the state to invest in paying down debt and investing in the Early Childhood Education Fund more than initially expected.
Student Test Scores Rise
Connecticut students saw improvements in all subject areas in the 2024-2025 school year, the state Department of Education reported, with students doing better in English, Science and Math year-over-year. This is the first time in a decade that all student groups saw increases in performance year-over-year, and absenteeism also has fallen for the third straight year, down from 23.7% post-pandemic to 17.2% in 2024-2025. That’s about 34,000 more students in class over a three-year period. All students saw their performance grow, with English Language Arts results up about 0.8% while Math scores rose by just under 1%. There’s still work to do, however, as many average scores still landed below pre-pandemic levels.
