Legislation leverages Stabilization Fund interest to compete for federal funds for transportation, housing, climate and economic development projects
BOSTON (01/11/2024) – Today, Senator Cindy F. Friedman (D-Arlington), joined her colleagues in the Massachusetts Senate to pass S.2548, An Act to provide for competitiveness and infrastructure investment in Massachusetts, an economic development bill that takes advantage of the interest accrued from the Commonwealth’s Stabilization Fund and leverages that interest to ensure the state receives the maximum possible share of federal funds. The Commonwealth’s Stabilization fund currently has a historic balance of $8.2 billion.
It is estimated Massachusetts currently has the opportunity to receive up to $17.5 billion through historic, once-in-a-generation federal funding opportunities.
“Our action in the Senate today is both fiscally responsible and prudent as we invest in the future of the Commonwealth,” said Senator Friedman, Vice Chair of the Senate Committee on Ways and Means. “By maintaining a healthy reserve balance in the Commonwealth Stabilization Fund, while also allowing the interest the fund generates to match grants for federal funding opportunities, this legislation opens a key tool for the state to stay competitive and help fund projects that will have a positive impact on residents of Massachusetts for years to come.”
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 if the stabilization balance is of a healthy amount. The Secretary of Administration and Finance would then pursue federal funding opportunities available thanks to the historic availability of federal funds for infrastructure, resiliency and economic development projects. … Read more.