Governor Baker signs $ 4 billion federal funding bill for COVID-19 assistance, including housing
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BOSTON – Governor of Massachusetts Charlie baker signed a $ 4 billion spending plan to support the continued recovery in key priority areas, making substantial investments in housing and homeownership, health care, workforce development -work, bonuses for essential workers and infrastructure.
The funding, first offered by the Baker-Polito administration in June 2021, will leverage some of the Commonwealth’s direct federal assistance from the American Rescue Plan Act (ARPA).
“The pandemic has had a significant impact on workers, families, communities and businesses in Massachusetts for almost two years, and today’s signing directs billions of dollars in aid to those hardest. affected across the Commonwealth â, Governor Charlie Baker said. “While this package is a far cry from the investment I requested to address the housing shortage, the significant investments included in this bill will help accelerate Massachusetts’ economic recovery and provide lasting benefits to infrastructure,” health care, education systems and small businesses. “
âThe funding allocated in this bill responds to critical needs throughout the
Commonwealth, from addiction services to housing availability to environmental infrastructure â, said the lieutenant governor Karyn polito. “This relief will play a crucial role in the ongoing recovery of our residents and communities, especially those disproportionately affected by COVID-19, and we look forward to implementing it.”
The bill authorizes up to $ 2.55 billion in spending on the $ 5.286 billion ARPA Coronavirus State Fiscal Recovery Funds provided to Massachusetts in May 2021. This direct federal aid is intended to support urgent COVID-response efforts. 19, replace lost income, support immediate economic stabilization for households and businesses, and address uneven economic and public health challenges in towns and villages in Massachusetts. After factoring in spending in this bill and previously announced commitments, approximately $ 2.3 billion of the state’s fiscal recovery funds from the coronavirus will remain to be allocated.
“The Commonwealth has worked diligently over the past two years to deploy billions of dollars in federal support to strengthen our economic recovery, support people in disproportionately affected communities and get people back to work,” said Administration and Finance Secretary Michael J. Heffernan. “We appreciate the collaboration of our Legislature colleagues on this bill to invest in Massachusetts health care, housing and workforce, and look forward to even more critical investments in 2022 with the remaining ARPA funds. “
Coupled with the authorized ARPA dollars, $ 1.45 billion in spending is allocated to the Transitional Escrow Fund, made up of the state’s fiscal year 2021 surplus funds. The bill gives the Secretary of Administration and Finance the responsibility of matching spending to the most appropriate source of funding, which provides significant flexibility in recognition of important federal rules and regulations associated with federal funds.
Highlights of the plan include:
Lodging
- $ 150 million to fund the production of statewide housing for diverse populations, including the elderly and veterans;
- $ 150 million for the maintenance of social housing;
- $ 115 million for the production of rental housing and to provide more housing options for residents of disproportionately affected communities;
- $ 115 million to support the production of housing in disproportionately affected communities through MassHousing’s CommonWealth Builder program and similar efforts;
- $ 65 million to support expanding homeownership opportunities, with a focus on first-time homebuyers who reside in disproportionately affected communities.
Health care
- $ 400 million for substance abuse treatment and related behavioral health services, workforce and infrastructure;
- $ 260 million for hospitals in fiscal difficulty in disproportionately affected municipalities;
- $ 200 million for local and regional public health, including local health board staff, technology and training;
- $ 50 million for workforce retention and capital improvements in nursing facilities and $ 30 million to support loan repayment, retention and recruitment programs for service workers social;
- $ 37.5 million for grants to reduce juvenile delinquency, youth homelessness and summer jobs.
Workforce Development
- $ 500 million to support the Unemployment Compensation Trust Fund;
- $ 500 million for bonuses paid to low-income essential workers;
- $ 107.5 million for workforce and career technical skills training;
- $ 24.5 million for workforce development and capital grants to YMCAs and Boys and Girls clubs.
Economic development
- $ 135 million to support cultural facilities and tourism assets throughout Massachusetts;
- $ 75 million for small business grants, of which $ 50 million will go to businesses reaching underserved markets and businesses owned by minorities, women and veterans. $ 25 million will be set aside for small businesses that were not eligible for previous programs.
Investment in infrastructure
- $ 100 million to finance grants for improving water supply and sewerage infrastructure;
- $ 100 million to improve culverts, dams and other environmental infrastructure;
- $ 90 million for the development of the seaport;
- $ 50 million to bridge the digital divide and increase broadband Internet access;
- $ 44.8 million for food security;
- $ 25 million for greening gateway cities.
Education
- $ 105 million for a variety of educational supports, including clawback grants to state universities and community colleges, workforce support for special education schools, and support for recruitment of educators of color;
- $ 100 million for public school HVAC grants;
- $ 100 million for capital grants to vocational high schools and vocational technical education programs.
The governor vetoed seven line items containing requirements that would cause delays in the use of funds.
Out of 88 outer sections included in the bill, the governor signed 86, including one that excludes Federal Paycheck Protection Program (PPP) loans, Economic Disaster Loan Advances (EIDL), grants from closed site operators, Restaurant Revitalization Fund grants, and SBA taxable income loans to individual taxpayers for all applicable tax years, creating parity with corporate taxpayers.
Governor Baker returned an outer section to the Legislature with proposed amendments and vetoed an outer section. Notably, while signing outside chapters that establish and fund a $ 500 million COVID-19 essential employee bonus fund for one-time payments to frontline workers, the governor vetoed a chapter putting in place administrative barriers that would interfere with the efficient distribution of payments, including the requirement to consult with a large group of 28 members program design advisory group. The veto on this section will allow the administration to immediately get to work on the process of distributing these funds.
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