Senate Ways & Means Committee Reports Out Bill to Increase the Commonwealth's Competitive Advantage
January 8, 2024Legislation captures and transfers Stabilization Fund interest to compete for the state’s maximum allotment of federal funds
BOSTON (1/8/2024)—Today, the Senate Committee on Ways and Means favorably reported out S2482, “An Act to provide for competitiveness and infrastructure investment in Massachusetts.” This bill aims to take advantage of the substantial interest accrued from the Commonwealth’s stabilization fund, currently at historic levels, and leveraging that interest to secure the state’s fair share of federal funds.
This smart financial accounting initiative will require the Comptroller to transfer interest from the stabilization fund to the Commonwealth Federal Matching and Debt Reduction Fund on a quarterly basis. The Secretary of Administration and Finance would then be empowered to pursue federal funding opportunities or to reduce, repay, or retire any portion of the Commonwealth’s long-term liabilities debt.
By combining three pieces of federal legislation: the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors Act (CHIPS) over $2 trillion in spending will be made available to states through competitive grant programs and formula allocations over the span of the next five to ten years. With this bill the Commonwealth will be maximizing its position to capitalize on these substantial federal funding opportunities.
"Today's legislation reported out of the Senate Ways and Means Committee directs the Healey Administration to use the interest from the Commonwealth Stabilization Fund to open doors to historic federal funding opportunities that will support projects across the state and save our state millions of dollars in the coming years," said Senate President Karen E. Spilka (D-Ashland). "It means that we are putting our money to work—and putting it to work for a more affordable, equitable, and competitive Commonwealth."
“The legislation that the Committee reported out today provides us with a smart accounting measure that we can utilize to effectively stretch and maximize our taxpayer dollars to place the Commonwealth in the very best position to compete for these lucrative federal funds, while also ensuring we continue to protect our rainy day reserves and adhere to sound fiscal discipline,” said Senator Michael J. Rodrigues, (D-Westport) Chair of the Senate Committee on Ways and Means. “Government is all about partnership, and I thank the Administration and the Senate President for this cost saving initiative as we work to capitalize on these historic federal funding opportunities to support projects throughout all corners of our state.”
The bill was originally filed by Governor Healey on October 19, 2024. It is now expected to for a vote by the full Senate in formal session this Thursday, January 11, 2024.