Since the legislative session began on Feb. 4, few issues have unified Democrat and Republican as clearly as the elimination or capping of occupational licensing fees.
These fees are government-imposed charges that professionals — from home inspectors and electricians to hairdressers, and even hypnotists — must pay to legally work in Connecticut. Many occupations require not only an initial application fee, but also annual renewal payments, which average nearly $300. For lower -and moderate-income workers, that recurring cost can be a barrier to entering, or remaining in, licensed trades.
In his State of the State address, Gov. Ned Lamont told lawmakers his budget “eliminates the licensing fees for nurses and the trades,” while asking, “Does a plumber really have to pay to maintain their certification every year?”
It was a rhetorical question — but an important one.
The comment underscores a broader issue: Connecticut imposes financial hurdles on hundreds of professions before workers can earn a paycheck.
This is not the first time the governor has advanced a similar proposal. His office has estimated that eliminating certain fees would save taxpayers tens of millions of dollars. Meanwhile, this session, multiple Republican bills — including S.B. 82 and S.B. 105 — seek to eliminate various occupational and professional license, permit, certification, and registration fees.
Momentum has been building for years.
Last session, a bill to cap fees at $100 received significant bipartisan support with nearly 30 co-sponsors. During public testimony, no one voiced opposition — a rare occurrence. The Connecticut Business and Industry Association (CBIA), the state’s largest business organization, supported the bill, noting that eliminating these fees would play a “critical role in helping lower the cost of employment for approximately a quarter of the state’s workforce.”
Despite that support, the bill failed to pass. While application fees for certain healthcare and educational professions were incorporated in the biennial budget, the removal of renewal fees, were not.
This legislative session presents an opportunity to revisit occupational licensing reform, and not a moment too soon. Connecticut workers and the state’s economy have long been encumbered by licensing requirements. A 2022 report from the Institute for Justice (IJ) found that occupational licensing costs Connecticut an estimated $6.34 billion and 48,000 fewer jobs each year.
Worse, the woes are self-inflicted. The same report ranked Connecticut as the 17th most burdensome state for occupational license. Nearly one in five workers must obtain permission from a state licensing board to work. For low- and moderate-income occupations, the average license requires 374 days of education and experience, often at significant expense.
Supporters of licensing argue that it protects public safety and ensures quality standards. But evidence increasingly suggests that many licensing regimes are “too strict,” that required training can be costly and unnecessary, and that these rules rarely improve service quality or protect the public from meaningful harm.
Licensing was intended to uphold standards. In practice, it often acts as a barrier to entry.
Lawmakers have correctly recognized affordability as a top concern this session. Connecticut residents continue to face some of the nation’s highest electric rates, partially due to the Public Benefits Charge; one of the worst tax climates; and among the hardest conditions to start a business.
Some proposed solutions — including tax and energy rebates — offer short-term relief but carry long-term fiscal tradeoffs.
Eliminating occupational licensing fees is different.
It is a targeted structural reform that reduces recurring costs without creating new spending obligations or long-term liabilities. Occupational licensing reform is a low-risk, bipartisan solution that would lower day-to-day business expenses, ease the complex regulatory environment, and help workers enter their chosen professions faster.
Removing unnecessary licensing fees won’t solve every economic challenge Connecticut faces. But it would send a powerful signal: that the state is serious about removing obstacles to work, encouraging small business growth, and making it easier — not harder — for residents to earn a living.
For workers looking to enter a trade, start a small business, or simply maintain their credentials, this reform is more than a budget line item. It is an opportunity.
Connecticut has a chance this session to remove a self-imposed barrier to economic growth.
It’s time to eliminate occupational licensing fees — once and for all.
