A bill that would allow the commonwealth to compete for federal funds to fund a variety of projects related to transportation, housing, climate, economic development, and technology will be approved in late September, according to a statement from state Sen. John Cronin. signed.
The bill, for which Cronin served as the Senate’s chief negotiator, would use interest generated from the federal stabilization fund to ensure states receive the maximum share of federal funds. The balance of the Stabilization Fund is currently at an all-time high of over $8 billion. Under the bill, Massachusetts could receive up to $17.5 billion in once-in-a-generation federal funding opportunities.
“Our commonwealth is well-positioned to leverage every available federal dollar so we can continue to meet our ambitious goals and remain fiscally responsible.”
Senator Cronin. “Thank you to the senators for their efforts to make our state more competitive and affordable for everyone.”
The initiative requires the Comptroller to transfer interest from the Stabilization Fund to the Commonwealth Matching and Debt Reduction Fund on a quarterly basis if the Stabilization Balance reaches certain benchmarks. The Secretary of Administration and Finance (A&F) will then pursue available federal funding opportunities as federal funds are available for infrastructure, resiliency, and economic development projects.
The Stabilization Fund is currently expected to accumulate approximately $250 million in interest annually.
Three federal laws, the Infrastructure Investment and Jobs Act (IIJA), the Inflation Control Act (IRA), and the Creating Incentives for Semiconductor Production (CHIPS) Act, provide more than $2 trillion to states through competitive grant programs. It will be done. .
Over the next several years, this legislation is expected to set aside more than $800 million to fund federal competitive grant opportunities and state or local matching requirements for planning work. has been.
– John J. Cronin, State Senator
