Administration Refiles Bill for Economic Development Funding

At the end of January, the Healey-Driscoll Administration filed its first legislation, a bill that seeks $987 million in bond authorization to preempt interruptions to core state capital programs supporting housing and economic development across the Commonwealth. The funding, which requires a formal legislative vote by roll call due to its reliance on bonds, would replenish a variety of programs that were unable to be included in last session’s new economic development law.

Among the items in House Bill 51, An Act Financing the Immediate Economic Revitalization, Community Development, and Housing Needs of the Commonwealth, are funds for critical infrastructure programs that need additional funding, such as MassWorks and the Middle Mile Broadband program. In the letter announcing the filing, Governor Healey wrote:

“Foremost among the immediate needs addressed in this bill is funding MassWorks, the largest and most flexible source of capital funds to municipalities for public infrastructure projects that support and accelerate housing production, spur private development, and create jobs throughout the Commonwealth. Without further authorization, no new MassWorl‹s grants can be awarded. This bill proposes $400 million to cover MassWorks needs through fiscal 2028. Other immediate needs include $9.3 million for broadband Middle Mile investments, $34 million for the revitalizing underutilized properties program, $15 million for the Massachusetts Manufacturing Innovation Initiative (M2l2), and $14 million for the Massachusetts Manufacturing Accelerate Program (MMAP). In housing, existing authorization is essentially exhausted in the Smart Growth Housing Trust and will likely expire for the Facilities Consolidation Fund and the Housing Stabilization Fund ahead of routine enactment of bond bills in the 2022-2023 session. Funding in this bill ensures that these programs can continue to support these important initiatives.”

In addition to replenishing funding for the MassWorks program, the legislation also proposes additional resources for a number of other high demand economic development programs that will need additional funding over the next two years. These programs support community development, promote economic growth, and keep Massachusetts on the leading edge of innovation, and include:

• $104 million for the Clean Water Trust to finance communities’ efforts to improve water infrastructure and improve local water quality;

• $52 million for programs supporting the Commonwealth’s innovation economy, including the advanced manufacturing sector, purpose-driven research, technology development, and in emerging technologies such as artificial intelligence and machine learning (AI/ML), robotics, quantum information science, cybersecurity, communications, and digital health;

• $9.3 million for broadband infrastructure, particularly in central and western Massachusetts communities.

Finally, the bill includes state matching funds to position the Commonwealth to take advantage of opportunities to compete for once-in-a-generation federal grant dollars in areas including climate change, advanced manufacturing, broadband access, water and sewer infrastructure, and technology.

Since the Massachusetts legislature had not appointed permanent committees for the 2023-2024 legislative session at the time of the Governor’s filing, the legislation was directly sent to the House Committee on Ways and Means. The legislation will likely emerge later this session with additional pieces of bonding authority or direct appropriations. To review the legislation, please visit: https://malegislature.gov/Bills/193/H51.