Boston - On September 24, 2024, 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.?

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.”

“This legislation puts Massachusetts in a position to take full advantage of federal grant opportunities to ensure we don’t leave a single dollar on the table,” said Senator John J. Cronin (D - Fitchburg). “This bill will help our Commonwealth partner with the federal government to meet our challenges and build for the future.”

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.??

Statements of Support

Doug Howgate, President, Massachusetts Taxpayers Foundation: 
“The Infrastructure Reduction Act, The CHIPS Act, and the Bipartisan Infrastructure Law put forward a once in a lifetime opportunity for the state to partner with the Federal government for on transformative investments. This bill is so important because it gives Massachusetts the strategy and the resources to compete for and to win necessary funds for critical transportation and climate infrastructure projects.”  

David Melly, Legislative Director for the Environmental League of Massachusetts: 
“In order to meet our emissions reduction goals and prepare for climate impacts, Massachusetts needs to compete hard for every federal dollar available. This legislation will give communities an innovative tool to take climate action, build resilient infrastructure, and modernize our transportation system.”

Kate Dineen, President & CEO of A Better City: 
“Governor Healey and her team are aggressively pursuing the federal dollars needed to build a more competitive, affordable, and equitable Commonwealth for all. Establishing a state matching fund is a key recommendation of our recently released report Making a Comeback, which shows that the Healey-Driscoll Administration has made significant gains over the past year in securing federal infrastructure grants funded by the Bipartisan Infrastructure Law and the Inflation Reduction Act. The administration's approach is working— and today's announcement will position us for even greater success.”

Linda Dunleavy and Jeff Walker, Co-Presidents of the Massachusetts Association of Regional Planning Agencies: 
“While Regional Planning Agencies help municipalities draft grant applications and manage awarded dollars, onerous matching funds requirements, sometimes as high as 50%, can keep both the neediest and most prepared communities from applying. Today, thanks to the Governor and the Legislature, a lack of matching funds will no longer stop a town, an RPA, or the Commonwealth from applying for transformative grants that will improve our infrastructure, climate, and economy.”

Frank Callahan, President of the Massachusetts Building Trades Unions:
"On behalf of the Mass Building Trades Unions, we are excited to see the passage of this legislation and the impact these new resources will have on community infrastructure projects. Thank you to the Healey-Driscoll administration for making these new tools available, and we look forward to partnering with communities to advance priority projects while supporting good jobs for workers."

Adam Chapdelaine, Executive Director, Massachusetts Municipal Association:
The MMA and local leaders across Massachusetts want to thank the administration and the Legislature for the enactment of this innovative federal funds law, which will greatly improve the competitive position of municipalities for once-in-a-generation federal funding available for infrastructure, climate resilience and other timely needs. The technical assistance is particularly beneficial to the many municipalities that have limited staff and experience to navigate the complicated federal process.”