Mass. House lawmakers vote to stash federal aid

Dan Hunt

After the Legislature rejected his original proposal to spend $2.8 billion of the state’s American Rescue Plan Act funding, Gov. Baker on Monday signed legislation transferring most of the money into a separate account and renewed his push to spend more than half of the pot on a range of short-term priorities.

About $4.89 billion of the roughly $5.3 billion state government received will be swept into a fund controlled by the Legislature after Baker signed the bill (H 3827) into law. Democrats who control both branches have said they will decide how to distribute the unprecedented tranche of money after a public hearing process.

Baker also announced Monday that the administration will file new legislation seeking to spend $2.9 billion of the ARPA funds on areas such as housing and homeownership supports, economic development, job training, addiction treatment, and water and sewer infrastructure.

The new bill will include $100 million for marine port development, but otherwise mirrors Baker’s original $2.8 billion suggestion that the Legislature shot down last week. His plan would leave about $2 billion in the Federal Covid-19 Response Fund that lawmakers created.

Baker, who has been at odds with legislative leaders over how to dole out the federal funding, poked at lawmakers again Monday, warning that “communities of color, the hardest hit areas of the Commonwealth, should not have to wait to have their tax dollars be put to work.”

“We are eager to work with the Legislature to put these funds to work and our $2.9 billion proposal will immediately aid those hardest hit by Covid-19 like communities of color and lower-wage workers,” Baker said in a statement. “This plan addresses homeownership gaps in communities of color, connects workers with in-demand job-training, boosts addiction treatment services, and invests in local infrastructure. It’s crucial that the Legislature act quickly and not hold up these important investments.”

On June 17, Baker offered a compromise that would have allowed him to immediately spend more than half of the funding the state received through the American Rescue Plan Act, and give the Legislature more time to deliberate over how to spend the remaining $2.3 billion. House Speaker Ron Mariano and Senate President Karen Spilka, however, quickly dismissed the governor’s plan, and the House on June 22 formally voted 130-30 along party lines to sweep $4.89 billion into a relief fund, subject to appropriation by the Legislature.

“We can all agree a number of those are well conceived and worthy. We don’t deny that. We just think it’s important that all 160 members of this body and 40 in our sister body have a chance to have their voice heard,” said Rep. Dan Hunt, the chair of the House Committee on Federal Stimulus and Census Oversight, about the governor’s priorities.

Hunt, who represents parts of Dorchester and Quincy, said that over the course of several months after the “July holiday” the House planned to have multiple hearings on different subject matters to gather input on how the money should be spent. Mariano and Spilka said the hearings would be led by the Joint Committee on Ways and Means.

“The Legislature stands firm in its commitment to employing an open, transparent, and thorough public process to best understand how we as a state can make smart investments with these one-time federal dollars to address pressing and long-term needs while promoting a just recovery for all areas of the state,” Mariano and Spilka said in a statement after the House vote.

The Democratic leaders said they invited the administration to testify at their hearings.

“We will continue to seek input from the governor and expect that he will file additional legislation so that his priorities can be part of that process,” they said.

Unlike Baker, who said it was important to put the money to work now to fuel the economic recovery, Hunt said Congress intended “a process to take place over four years.”

The Dorchester Democrat noted that other rounds of federal stimulus were pumped directly into the economy and cities and towns will still receive $3.4 billion in separate ARPA relief. Additional buckets of money from ARPA for unemployment, childcare, higher education, public transit, and other sectors flow directly from the federal government to recipients without the involvement of the Legislature or governor.

“As we move forward in a recovery phase, it’s important to spend time to reflect on this once-in-a-generation funding,” Hunt said.

The House vote on June 22 also left Baker with $10 million to cover the cost of a new “VaxMillions” vaccine Lottery, which is offering fully vaccinated residents a chance to win one of five $1 million prizes, or one of five $300,000 scholarships for entrants under 18.

One wrinkle added to the debate was an amendment offered by Hunt and Ways and Means Chairman Aaron Michlewitz and unanimously approved in the House that directs Baker to spend $200 million “to protect against emerging public health threats or to support new, heightened, or emergency public health response efforts against the 2019 novel coronavirus and variants thereof.”

Public health departments strained by the pandemic have requested up to $250 million in recovery funds to help hire staff, invest in training, and upgrade data systems.


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