November 07, 2023

State Strategies for Federal Funding Opportunities

On October 19th, the Healey administration announced its plan to pursue the federal funding opportunities available through the Infrastructure Investments and Jobs Act (IIJA), Inflation Reduction Act (IRA), and Creating Helpful Incentives to Produce Semiconductors Act (CHIPS). The proposal would establish a new trust fund – capitalized through interest earnings on the Stabilization Fund – that can be leveraged to draw down on federal funding opportunities, fund PAYGO capital projects, and support debt management strategies.

The administration’s plan reflects many of the recommendations included in a recently released report from the Massachusetts Taxpayers Foundation (MTF), Capitalizing on Federal Funding Opportunities. According to the report, Massachusetts could access up to $17 billion in federal funding, but to do so must commit nearly $3 billion in state matching resources. While a significant portion of these resources have been identified through recent bond bills and direct appropriations, an estimated $800 million need remains to meet state match requirements for federal programs.