At the State House on Oct. 19, Gov. Maura Healey signs two executive orders intended to help improve the state’s competitive position for federal funding. Among those joining her at the signing were, from left, Federal Funds and Infrastructure Director Quentin Palfrey, Lt. Gov. Kim Driscoll, Deputy Climate Chief Jonathan Schrag, and Energy and Environmental Affairs Secretary Rebecca Tepper. (Photo courtesy Joshua Qualls/Governor’s Press Office)

Gov. Maura Healey filed a bill today that aims to improve the competitive position of Massachusetts and its local governments for winning federal funds.

The governor’s bill (S. 2482) proposes using interest on the state’s stabilization fund, which now totals an all-time high of more than $8 billion, toward state matching funds for federal dollars. The governor said the plan would leverage $750 million in interest to establish a permanent PAYGO Capital Investment and Debt Reduction Fund, which would be used for three purposes:
• Leveraging federal grant opportunities under the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and CHIPS and Science Act
• Accelerating critical investments using pay-as-you-go capital funding
• Allowing for debt management strategies that would generate savings for the state

The bill would also dedicate $50 million for a proposed local infrastructure bank to fund capital expenditures that promote municipal, tribal and regional project readiness and enhance the competitiveness of federal funding applications under guidelines adopted by the Executive Office for Administration and Finance.

An additional $12 million is proposed for planning support and technical assistance to municipalities in seeking competitive federal grants.

The governor also signed an Executive Order formally establishing the Federal Funds and Infrastructure Office, led by Quentin Palfrey, and formally establishing the previously announced Massachusetts Federal Funds Partnership for Municipalities and Tribes.

“We’re grateful for this timely proposal from the Healey-Driscoll administration, which would ensure that the Commonwealth can compete for the historic funding available from the federal government,” said MMA Executive Director Adam Chapdelaine. “This initiative offers an important framework to support cities and towns in developing successful applications and providing matching funds to maximize all opportunities.”

The bill now moves to the Senate Ways and Means Committee.

Link to the governor’s press release about the proposal
Federal Match Legislation – Support for Local Governments brief (200K PDF)

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