Question about Spilt Entry Insulation

Hi, I have a Split Entry house in Southern NH. Originally lower level unfinished, with insulation in the floor joists to the main level. The front

2 foot "overhang" has vented soffit.

We finished the lower level, and did not change the insulation/soffit, but installed a fiberglass backed ceiling tile. I have not thought much about it, until I knocked one loose this week and realized how much cold air is flowing in. Now I wonder, should I be leaving this soffit opened like an attic? I'm not sure what purpose this serves now, and whether I can improve my heating bills by changing this.

thanks Bob

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pony67
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