In a move aimed at securing federal funding, earlier today, Massachusetts Governor Maura Healey filed legislation and an executive order. According to Mass.gov, the state stands a chance to compete for and win up to $17.5 billion in federal funding. This opportunity comes by way of the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and the CHIPS and Science Act.
Also contributing to the drive for federal funding, the Healey-Driscoll Administration lodged An Act to Provide for Competitiveness and Infrastructure in Massachusetts. Targeting the establishment of a Capital Investment and Debt Reduction Fund. This act hopes to make available $800 million in state-level funding for the pursuit of federal grants over the next three years. These snagged funds will make it possible to assign matching funds which are often required by federal grant programs. This is in addition to about $2 billion in state matching funds previously identified from other sources such as the FY24-FY28 Capital Investment Plan, the FY24 budget, and other appropriations.
Further supporting this endeavor, Governor Healey has also signed an Executive Order founding the Federal Funds and Infrastructure Office (FFIO). Lead by Quentin Palfrey, the FFIO will work in tandem with the Massachusetts Federal Funds Partnership for municipalities and tribes. The FFIO with key objectives to identify potential federal funding opportunities and collaborating with state agencies, municipalities, and other Massachusetts entities.
Commenting on the developments, Governor Maura Healey exuded an optimistic stance, citing competitive intent in the bid for federal funding. She highlighted the unprecedented opportunities made available via the Biden Administration.
Built into the legislation is a plan to utilize interest earnings on the state's Stabilization Fund which is recorded at a high of approximately $8 billion. Generated interest alongside $50 million in Fair Share resources already assigned for transportation matching funds through the Fiscal Year 2024 budget will total up $250 million a year anticipated to be generated by the interest from the Stabilization Fund alone.
In the allocated funding, $50 million is set aside to assure the competitiveness of local/regional partners via municipal matching grants and a local infrastructure bank. Another $12 million dedicated to technical assistance aimed at municipalities for effective applications for federal funding opportunities.
The Massachusetts Association of Regional Planning Agencies has spotlighted the Federal Funding Infrastructure Office as crucial to the Commonwealth's success in winning diverse federal funds for Massachusetts' municipalities and the state overall. Linda Dunlavy, Executive Director of the Franklin Regional Council of Governments, expressed appreciation to the Administration for recognizing the challenges rural and small-town municipalities face concerning capacity and match, as cited in the official press release.
This proposal appears to be in support the administration’s efforts in securing federal funding. Among recent achievements is the $147 million secured for broadband access expansion in Massachusetts, and $108 million for track improvements from Springfield to Worcester. This infrastructure upgrade is aimed at supporting additional West-East passenger rail capacity. Other funds include $22 million dedicated to Massachusetts municipalities targeted towards countering extreme heat through urban tree canopies, and yet another allocation of $19.7 million to establish a Department of Defense Microelectronics hub. These additional resources will provide advanced manufacturing and technology opportunities.
Interim President of the Massachusetts Budget and Policy Center, Phineas Baxandall, commended the initiative, recognizing its potential for securing billions in short-term federal grant dollars. Additionally noting the opportunity to address the Commonwealth's long-term maintenance and capital needs.
