Tag: infrastructure investment and jobs act

BOSTON — Massachusetts wants to rope in billions of dollars in federal infrastructure funds to fix crumbling roads and bridges and transition to clean energy, but the state needs to pony up some of its own money to get it.

That will happen under a proposal, approved by the state Legislature on Thursday, that calls for leveraging state funds to go after billions of dollars in competitive federal grants that will be made available through President Joe Biden’s jobs and infrastructure law and other programs.

The plan, filed last year by Gov. Maura Healey, will divert interest from the state’s reserve funds to create a “pay-as-you-go” capital fund to pursue a much larger pool of federal funds for infrastructure projects.

Healey officials say the so-called rainy day fund, which is approaching $9 billion, generates an estimated $250 million in interest a year.

“Remaining competitive, equitable, and affordable as a commonwealth means thinking creatively about our state’s finances and seizing opportunities,” Senate President Karen Spilka, D-Ashland, said in a prepared statement.

“We have been fiscally prudent in building up the largest rainy day fund in Massachusetts’ history, which allows us to leverage our robust interest earnings to compete for federal dollars that will help us strengthen our infrastructure,” she said.

If Healey signs the bill, as expected, it will require the state Comptroller to transfer interest from state reserves to the Commonwealth Federal Matching and Debt Reduction Fund when amounts exceed 10% of budgeted revenues of the previous fiscal year, provided that the balance of the fund hasn’t decreased in the previous year.

Backers of the plan said it will pump up to $800 million into the capital fund over the next three years.

Healey’s federal infrastructure czar, Quentin Palfrey, has pointed to more than $17.5 billion available from federal grant programs which he says provides an “unprecedented opportunity” to tap into federal funds to address some of the state’s most pressing infrastructure needs.

The money would come from the Infrastructure Investment and Jobs Act, a $1.2-trillion spending bill signed by Biden in 2021. Federal infrastructure money is also available through the CHIPS and Science Act and the Inflation Reduction Act.

Overall, Massachusetts stands to get $9.3 billion from the infrastructure law over the next five years, including at least $4.2 billion for roadway upgrades and $1.1 billion for bridge repairs, according to the Biden administration.

At least $1.1 billion will be directed to improving water and sewer infrastructure and address outfalls that spew sewage into the Merrimack River, while at least $100 million will provide broadband internet coverage to rural communities.

The state will also get $2.5 billion for upgrades on its public transit system. Other funding would be devoted to airport upgrades and incentives for drivers to switch to electric vehicles.

It’s also slated to get $147 million to help expand high-speed broadband internet service to underserved regions of the state.

But the state is also chasing after more than $17.5 billion in competitive grants made available through the infrastructure law for local governments to fix potholes and crumbling bridges, upgrade water and sewer systems and other needs.

Healey officials say they will need to ante up at least $3 billion in state matching funds to be competitive in that process. The state has already earmarked $2 billion, they say.

Money from the federal laws is already flowing into the state, including $108 million from the U.S. Department of Transportation to improve rail service in western and central Massachusetts.

The state is also getting $1 billion in federal funding from the infrastructure law to help cover the cost of replacing two Cape Cod bridges.

Republicans have expressed concerns about the Democratic governor controlling billions of dollars in federal funding and have sought to put guardrails on use of the money.

Data provided by the Biden administration shows only about 25% of Massachusetts’ 5,229 bridges are in good condition. About 9% are considered structurally deficient.

Besides structurally deficient bridges, many of the state’s roadways are in major disrepair, according to the White House.

The Biden administration’s Infrastructure Report Card gave the state a grade of C-, saying there are at least 1,194 miles of highway in poor condition.

Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.