September 07, 2023

Capitalizing on Federal Funding Opportunities

Over the last two years, the federal government has made unprecedented investments in transportation, climate resiliency, and economic development infrastructure through three pieces of legislation: the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors Act (CHIPS). Combined, these three bills include over $2 trillion in spending, nearly half of which will be made available to states through competitive grant programs and formula allocations over the next five to ten years.

For Massachusetts, this infusion of federal funds offers a unique opportunity to address aging infrastructure, like the Cape Cod Bridges; make progress towards meeting our clean energy and climate goals, like Net Zero in 2050; and maintain our status as a hub of innovation and research. However, in many cases, securing the Commonwealth’s fair share of federal funds will require a commitment of state resources.

This brief assesses the potential funding opportunities for Massachusetts across these three bills and estimates the state matching dollars needed to access and competitively apply for federal dollars. It then reviews the resources that have already been made available for state match requirements through bonding authorizations and discusses the current constraints on the state’s capital spending plan.