Lowell’s State House delegation (pictured left-to-right): Rady Mom, Vanna Howard and Rodney Elliott with ceramist Yari Livan (brown jacket)

The Massachusetts House of Representatives passed a bill Wednesday that will enable the Commonwealth to leverage the interest earned by the Stabilization Fund, which currently stands at a historically high balance of $8.2 billion, to bolster our ability to compete for federal funds and pay down debt obligations, such as pensions and other post-employment benefits. With the passage of this bill, Massachusetts will be able to more aggressively compete for federal funding made available through the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and the CHIPS and Science Act.

“I feel It is imperative that the Commonwealth be able access and  compete for the billions of dollars which are available,” 16th Middlesex Representative Rodney Elliott told InsideLowell. “Given the revenue constraints we are facing this fiscal year, being able to access additional funding to support infrastructure projects and allow our companies in Lowell and North Chelmsford to be able to compete with  internationally is a wise investment ”

The legislation establishes the Commonwealth Federal Matching and Debt Reduction Fund to be administered by the Executive Office for Administration and Finance (A&F). The fund will consist of the interest earned on the Stabilization Fund in each fiscal year, any money appropriated to the fund, and interest earned on the fund. The Comptroller will transfer interest from the Stabilization Fund to the newly established Commonwealth Federal Matching and Debt Reduction fund each quarter, but as a safeguard, no transfer will occur if the balance has decreased over the preceding year, or if it no longer exceeds 10 percent of budgeted revenues.

“Ensuring that the Commonwealth is able to aggressively compete for the federal funding being made available to states is critical, especially given the challenging revenue conditions that we are facing here in Massachusetts this fiscal year,” said House Speaker Ronald J. Mariano (D-Quincy). “The projects and investments that will be funded throughout the U.S. because of 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.” 

A&F may expend the funds to pay down the Commonwealth’s debt or pension obligations, OPEB, capital leases, general or special obligation contract liabilities, or transfer any amount back to the Stabilization Fund. A&F may expend up to $750 million from the fund to provide matching funds for federal programs through December 1, 2026:

• Up to $50 million may be used for matching funds for federal programs in the form of grants, loans, and other financial assistance to cities, towns, tribes, and regional organizations.
• Up to $12 million may be used to provide grants to support municipal, tribal, and regional organizations in planning efforts.

Having passed the House of Representatives 152-0, An Act to provide for competitiveness and infrastructure investment in Massachusetts now returns to the Senate for further consideration.