Connecticut’s oversight of low-income heating assistance programs is under intense scrutiny. State officials just ordered sweeping financial controls on New Opportunities Inc., a Waterbury-based nonprofit that admitted to misusing federal energy assistance dollars.
This case affects vulnerable residents across several communities. Waterbury, Meriden, Torrington, Hartford, New Haven, Bridgeport, New Britain, and Danbury all rely on stable heating support during the winter.
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State Demands Strict Oversight of New Opportunities Inc.
New Opportunities Inc. has served dozens of communities for years. Now, the state’s imposing some of the toughest oversight measures possible without shutting the organization down.
Officials say they want to protect federal Low-Income Home Energy Assistance Program (LIHEAP) dollars. They’re determined to make sure those funds keep qualifying residents safe and warm—nothing else.
Three Major Corrective Actions Ordered
The Office of Policy and Management (OPM) handed down three non-negotiable corrective actions. These steps aim to steady the nonprofit and prevent future misuse of public money:
- Appointment of a state-approved fiscal intermediary to oversee and manage financial operations related to state and federal funding.
- An independent, comprehensive audit of all programs, accounts, and finances to determine the full scope of the problem.
- Removal of any executives responsible for the misuse or misdirection of funds, as identified through internal review or external audits.
Officials aren’t mincing words. If New Opportunities doesn’t comply, it could lose funding or even face legal trouble.
Misuse of LIHEAP Funds and Bounced Multi-Million Dollar Checks
At the heart of the mess, New Opportunities admitted it used federal LIHEAP funds for general operating expenses. The money was supposed to pay for heating and utility assistance, as laid out in their contract.
This choice created a major cash shortfall. The problem spilled into public view late last year.
Eversource Alerts State to Serious Financial Problems
Things escalated in December. Eversource, one of Connecticut’s biggest utility providers, reported that a $1.5 million check from New Opportunities bounced.
Digging deeper, investigators found three checks—totaling more than $2.8 million—without enough funds to back them. Those discoveries set off a flurry of state investigations and led to the current enforcement actions.
State officials say New Opportunities openly admitted using federal energy assistance money for other expenses. That’s a direct violation of its state contracts and federal program rules.
Impact on Low-Income Residents Across Connecticut
New Opportunities plays a big role in Connecticut’s social services network, especially in the central and western regions. The nonprofit handles energy assistance and other programs in Waterbury, Meriden, Torrington and 27 more communities.
Cities and towns like Hartford, New Haven, Bridgeport, New Britain, Danbury, and Bristol depend on this help. Low-income families in these places often count on heating aid to make it through the winter.
More Than 48,000 Residents Received Heating Help in 2024
According to the nonprofit’s own numbers, New Opportunities provided heating assistance to about 48,120 people in 2024.
Connecticut officials say the crisis is about financial controls and compliance—not stopping services.
The state expects New Opportunities to keep running its programs while they work through these corrections. They really don’t want to disrupt heat and utility support for vulnerable folks in cities like Waterbury and Meriden.
Smaller communities, lacking similar local service providers, would feel the loss even more.
New Rules for Energy Assistance Payments
After what’s been called serious fiscal mismanagement, the Department of Social Services (DSS) is changing how money moves through the program at New Opportunities. The goal? Make sure LIHEAP funds get where they’re meant to go, no detours.
Payments Now Go Directly to Utility Companies
DSS now requires that future Connecticut Energy Assistance Program payments managed by New Opportunities go straight to utility companies and fuel vendors. The money won’t pass through the nonprofit’s accounts anymore.
This aims to stop funds from being used for anything unauthorized.
Commissioner Andrea Barton Reeves also wants detailed documentation, including:
- Bank statements for all relevant accounts
- Monthly reconciliations
- Copies of cleared checks tied to fuel and utility payments
These requirements give the state a much clearer look at how energy assistance dollars get handled. If there are more irregularities, they’ll be much harder to hide.
A Second Major Financial Crisis in Less Than a Decade
This isn’t the first time New Opportunities has landed in hot water for diverting LIHEAP funds. Back in 2016, the nonprofit hit a major financial crisis when people found out that millions in energy assistance money had gone to the wrong places.
That mess raised questions about internal controls—questions that, honestly, still linger. Now, with this second incident, state leaders in Hartford feel the heat to prove their oversight actually works for both taxpayers and low-income residents.
For families in communities from Torrington to New Haven, and from Bridgeport to Bristol, the results of this enforcement effort matter. When the temperatures drop, people want to know if Connecticut’s safety net will hold up or fray under pressure.
Here is the source article for this story: CT officials order oversight, audit of New Opportunities after misuse of funds
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