Rep. Stanley, MA Legislature Pass Legislation to Increase the Commonwealth’s Competitiveness for Federal Dollars

Rep. Stanley and his colleagues passed a bill that will allow the Commonwealth to more effectively compete for federal funding that could be invested in transformative projects related to transportation, housing, climate, economic development, and technology. The legislation 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 has an all-time high balance of over $8 billion. It is currently estimated that Massachusetts could receive up to $17.5 billion through historic, once-in-a-generation federal funding opportunities.

Over the coming years, this bill is expected to unlock more than $800 million in funds that will be used to fund the state or municipal match requirement for federal competitive grant opportunities, as well as planning work that will help municipalities with the process of preparing applications for federal grants. Once federal grant opportunities expire, money in this fund will go toward reducing the Commonwealth’s long-term liabilities. The Governor signed the bill on September 24, 2024.

“This legislation is another game changer for Massachusetts,” said Representative Thomas M. Stanley (D-Waltham. “By strategically leveraging the interest from our Rainy Day Fund, we’re not only ensuring the Commonwealth can compete for critical federal dollars but also making significant investments in transportation, housing, and climate infrastructure. These funds will help us meet the needs of our communities while maintaining fiscal responsibility and positioning Massachusetts as a national leader in innovation and development.”