Baker-Polito
Administration Files Plan to Invest $2.9 Billion in Federal COVID-19 Funding to
Support Economic Recovery, Communities Hit Hardest by Pandemic
BOSTON — The Baker-Polito
Administration today will re-file its plan to immediately put to use part of
Commonwealth’s direct federal aid from the American Rescue Plan Act (ARPA) to
support key priorities including housing and homeownership, economic
development and local downtowns, job training and workforce development, health
care, and infrastructure. The Administration called on the Legislature to act
quickly on the $2.9 billion plan to jump-start the Commonwealth’s economic
recovery and support residents hardest-hit by COVID-19, such as lower-wage
workers and communities of color.
Governor Charlie Baker today is re-filing the proposal
after signing “An Act Relative to Transferring Federal Funds to the Federal
COVID-19 Response Fund,” which was on the Governor’s desk.
“We are eager to work with the Legislature to put these
funds to work and our $2.9 billion proposal will immediately aid those hardest
hit by COVID-19 like communities of color and lower-wage workers,” said
Governor Charlie Baker. “This plan addresses homeownership gaps in
communities of color, connects workers with in demand job-training, boosts
addiction treatment services and invests in local infrastructure. It’s crucial
that the Legislature act quickly and not hold up these important investments.
Communities of color, the hardest hit areas of the Commonwealth, should not
have to wait to have their tax dollars be put to work.”
“Massachusetts’ economic recovery is off to a good start
but it’s crucial that we address the disproportionate impacts of the pandemic
by taking action to invest these federal relief dollars in priorities like
housing, economic development, job training, and addiction treatment,” said
Lt. Governor Karyn Polito. “We look forward to working with our colleagues
in the Legislature to move quickly in putting these relief dollars to work on
behalf of our communities.”
The proposal filed today is the same proposal filed by
Governor Baker earlier this month with the Legislature, with an additional $100
million for marine port development to support economic growth.
The Administration’s plan to invest $2.9 billion in
federal dollars in these disproportionately impacted communities complements a
proposal filed last week for the Commonwealth’s surplus state tax revenue. With
May revenues approximately $4 billion over benchmark, the
Administration’s proposal for a 2-month Sales Tax Holiday would provide
relief for small businesses and residents, especially lower-wage workers who
are most impacted by the sales tax.
The $2.915 billion is part of a total of approximately
$5.3 billion in direct aid to the Commonwealth from the federal American Rescue
Plan Act. These discretionary funds are intended to support urgent COVID-19
response efforts, replace lost revenue, support immediate economic
stabilization for households and businesses, and address unequal public health
and economic challenges in Massachusetts cities and towns throughout the
pandemic. ARPA is also providing a total of $3.4 billion in direct aid for
municipalities throughout Massachusetts, as well as substantial funding for key
priorities including a total of $1.1 billion for transit. With a focus on
increasing capacity for child care and supporting parents as they return to
work, the Administration is also proposing to distribute approximately $760
million in additional federal funding to child care providers in Massachusetts
over the coming years, and looks forward to working with key stakeholders on
the usages of these funds.
The remaining $2 billion in direct federal aid would stay
in the Federal COVID-19 Response Fund, and the Administration looks forward to
working closely with the Legislature to allocate these resources in a fiscally
responsible and compliant manner.
In addition to this discretionary funding, an additional
$35.2 billion in other ARPA funding has been directed to the Commonwealth to
support additional areas of recovery including direct aid to municipalities,
transportation, and child care. This includes approximately $3.4 billion in
direct aid to cities, towns, and counties throughout Massachusetts. The plan
therefore includes language allowing a local match for numerous programs to
better leverage municipal support, optimize the usage of all available revenue,
and maximize the impact of this one-time federal funding.
Highlights of the plan include:
Housing
- $300 million to support
expanded homeownership opportunities, focused on first-time homebuyers who
are residents of disproportionately impacted municipalities;
- $200 million to support
housing production through MassHousing’s CommonWealth Builder Program and
similar efforts, which aim to help communities of color build wealth by
promoting home ownership among residents of disproportionately impacted
municipalities;
- $200 million to fund
rental housing production and provide increased housing options to workers
and residents of disproportionately impacted municipalities;
- $300 million to finance
the statewide production of senior and veteran housing. These new housing
options would contain a supportive services component, and would be
combined with other resources including Low-Income Housing Tax Credits,
rental payments, and, in the case of veteran housing, VA health
care.
Economic Development
- $100 million for
Downtown Development to concentrate economic growth activities, resources,
and investments within local neighborhood areas in municipalities
disproportionally impacted by COVID;
- $250 million to support
investments and regional collaboration aimed at invigorating downtowns
throughout Massachusetts. These resources would provide grant funds to municipalities
and other eligible public entities for a range of projects;
- $100 million to support
cultural facilities and tourism assets throughout Massachusetts;
Workforce Development
- $240 million to fund a
suite of job training programs and address skills gaps, to better position
residents who want to be hired into jobs that businesses need filled.
Areas of investment include:
- $150 million for
workforce credentials for entry and mid-level wages;
- $35 million to fund
English for Speakers of Other Languages programs and Adult Basic
Education;
- $25 million for work
readiness and essential skills programs.
Health Care
- $50 million for fiscally
stressed hospitals in disproportionately impacted municipalities as these
hospitals have supported their communities significantly during the
pandemic despite interruptions to their revenue streams;
- $175 million for
addiction treatment and related behavioral health services.
Infrastructure Investment
- $400 million to fund
grants for water and sewer infrastructure;
- $300 million to improve
culverts, dams, and other environmental infrastructure;
- $100 million to enhance
and modernize state park facilities;
- $100 million to close
the digital divide and increase broadband internet access, helping to
promote workforce development and economic growth.
- $100 million for marine
port development.
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