Governor Healey Signs Legislation Unlocking Millions to Compete for Federal Funding
BOSTON – Today, Governor Healey signed into law an
ambitious plan to dramatically improve the state’s ability to bring in federal
funding for infrastructure, climate and economic development projects. The
legislation unlocks unprecedented resources for communities to compete for
federal grants, clearing the way for further federal investment in the
Massachusetts priorities. From governor's X post.
The legislation will leverage interest from the state’s
stabilization fund, without reducing the current balance, to create a matching
fund pool of up to $750 million to pursue federal funds. The bill allocates up
to $12 million for technical assistance for local governments and tribes, and
up to $50 million for grants, loans and other financial assistance for federal
programs.
“From day one of our administration, we’ve been committed to
competing aggressively to win more federal investments in Massachusetts. We
know that every federal dollar we pull in is vital to repairing our bridges and
roads, improving transportation infrastructure in all parts of the state,
leading the clean energy revolution, and supporting our workforce at every
step,” said Governor Maura Healey. “With this legislation, we will be
able to provide unprecedented tools for our communities to seek the federal
support they need. I’m grateful for the leadership of Federal Funds and
Infrastructure Director Quentin Palfrey and Administration and Finance Secretary
Matthew Gorzkowicz and for the partnership of the Legislature as we reimagine
our approach to federal funds, and we look forward to seeing the
transformational impact these resources will have for our communities.”
Massachusetts has a unique opportunity to access up to $17.5
billion in federal funds through the Inflation Reduction Act (IRA), the
Bipartisan Infrastructure Law (BIL) and the CHIPS & Science Act (CHIPS). At
the start of the administration, Governor Healey established the Federal Funds
and Infrastructure Office (FFIO) to help lead the state’s whole-of-government
strategy for pursuing these federal dollars.
Since Governor Healey took office, the state has pulled in
over $8.6 billion in federal funding, including roughly $4.2 billion allotted
by formula and more than $4.2 billion in discretionary grant awards. The funds
have successfully supported projects across the state related to
transportation, climate resiliency, job creation and economic development. Most recently, the MBTA won its
largest award to date by securing $472 million to rebuild the North Station
Draw One Bridge.
“Federal support is critical to our communities, and we are
determined to win every grant possible, no matter the scale. We knew that our
cities and towns needed extra support to secure federal funds, so we got to
work to provide them with the resources they need,” said Lieutenant Governor
Kim Driscoll. “This legislation unlocks the tools necessary to fund key
infrastructure projects. We’re grateful to our legislative partners for
prioritizing this effort and look forward to partnering with communities to
bring more federal dollars home.”
“The historic level of federal funding made available to
Massachusetts by the Biden-Harris Administration is a tremendous opportunity to
make investments across sectors that advance our carbon reduction goals, labor
and workforce development, and equity priorities,” said Director of Federal
Funds and Infrastructure Quentin Palfrey. “This legislation is the key to
ensuring every community is able to access these dollars. We look forward to
leveraging these resources to meet our transportation needs, create good paying
jobs, and further climate resiliency and environmental justice in our
communities. Thank you to our legislative partners and to every advocate who
helped get this over the finish line.”
“With this legislation, Massachusetts is in the best
possible position to maximize federal grant dollars and immediately put these
funds to work in our communities,” said Secretary of Administration and
Finance Matthew J. Gorzkowicz. “By leveraging interest from our strong
Stabilization Fund to create the State Matching Funds Pool, we are adding a
new, flexible tool to the state’s financial toolbox and ensuring that we can
meet critical needs today and into the future.”
“Remaining competitive, equitable, and affordable as a
Commonwealth means thinking creatively about our state’s finances and seizing
opportunities,” said Senate President Karen E. Spilka (D-Ashland). “We
have been fiscally prudent in building up the largest rainy day fund in
Massachusetts’ history, and with the Governor’s signature, our communities will
now be able to leverage our robust interest earnings to compete for federal
dollars to fund transformative projects. I am grateful to the Governor and her
Administration for filing this legislation, to Chair Rodrigues for his
leadership, and to the Senate’s members for their efforts and support.”
“Ensuring that the Commonwealth is able to aggressively
compete for the federal funding being made available to states is critical,”
said House Speaker Ronald J. Mariano (D-Quincy). “The projects and
investments that will be funded across the United States because of the
Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and the
CHIPS and Science Act will transform this country and create a significant
number of jobs in the process. It’s vital that Massachusetts does everything
that it can to share in that prosperity. I want to thank Governor Healey for
proposing this idea, as well as all my colleagues in the House and our partners
in the Senate for recognizing the importance of this legislation.”
“With the Governor signing this legislation into law, the
Commonwealth will now be able to fully leverage federal funds for substantial
investments in housing, transportation, climate, and economic development and
technology,” said Senator Michael J. Rodrigues (D-Westport), Chair of the
Senate Committee on Ways and Means. “By diverting interest accrued from the
Stabilization Fund, which currently sits at a record $8 billion plus, we can
unlock $17 billion available at the federal level, spur investments in regional
projects, and dedicate $12 million to further assist municipalities when they
compete for federal matching funds. This legislation also allows us to pay down
long term liabilities quicker when the Stabilization Fund is at its current
healthy level. By establishing a dedicated and primary funding account, we are
sending a strong message to the federal government that the Commonwealth is
serious about partnering on capital investment projects.”
“Giving the Commonwealth a competitive edge when it comes to
competing for Federal dollars is paramount. By building off the interest earned
from the historic high balance of the Rainy Day Fund we will be better
positioned to compete for Federal matching grant to improve our infrastructure
and other critical needs,” said House Committee on Ways and Means Chair
Representative Aaron Michlewitz (D Boston). “I want to thank all my
colleagues in the Legislature and our partners in the Healey Administration for
their commitment to getting this legislation over the finish line.”
“I am very optimistic about the recent passage of this Bill
that allows for our rainy-day fund to enhance resources for critical
infrastructure projects across Massachusetts. This agreement will not just save
taxpayers money but will enable us in the Legislature to address the modern and
ever-changing needs of our public,” said Senator Patrick M. O’Connor
(R-Weymouth). “By apportioning these funds to resources such as housing and
transportation, we are in turn positioning the Commonwealth to not just better
meet the demands of our residents but to maintain a competitive economy. I want
to extend my appreciation to my colleagues in the House and Senate for their
joint efforts on this important legislation.”
“This final legislation signed into law today increases our
Commonwealth’s ability to compete for federal funds while also paying down our
debt obligations,” said Representative Jack Patrick Lewis (D-Framingham),
Chair of the House Committee on Federal Stimulus and Census Oversight. “It
was an honor to chair this bill’s legislative hearing with my Vice Chair, Rep.
Chris Hendricks, and to work with my committee to put forward the bill passed
by the House earlier this year. I’m grateful to Governor Maura Healey and her
administration for filing the original bill, Speaker Ron Mariano for naming me
to this conference committee, and to Chair Aaron Michlewitz and the other
conferees for crafting this final bill. I look forward to supporting and
celebrating the transformative projects that this legislation will make
possible.”
“We are constantly competing with 49 other states for our
share of limited federal dollars,” said Representative Mathew J. Muratore
(R-Plymouth). “Leveraging the interest on our Rainy Day Fund will give us a
significant advantage by better positioning Massachusetts to successfully
secure much-needed federal dollars that will help pay for a wide range of
infrastructure projects.”
The federal funds legislation aims to improve the state’s
competitiveness for grants across a range of projects. Since January of 2023,
Massachusetts has brought in key awards for transportation, climate and
economic development priorities. A list of award highlights can be found here.
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