The money was tucked into a bonding bill passed Wednesday, the final day of the legislative session. It's among municipal grants for infrastructure projects and programs including planning, property acquisition, site preparation and construction.
A Newtown task force last month voted to tear down Sandy Hook Elementary School, where 20 children and six educators were killed. It voted to construct a new building on the site.
Gov. Dannel P. Malloy said Thursday the state left it up to the town's residents to decide what to do with the school. He says these are the people "who have been most adversely impacted."
Efforts are being made to secure federal money.