Appropriations panel advances a string of ARPA reclassifications and interest-fund allocations totaling tens of millions

The Joint Committee on Appropriations and Budget advanced a series of bills that reclassify ARPA interest funds and appropriate interest earnings to state projects, with most measures passing by wide margins.

Senator Hayes (committee sponsor for several items) walked the committee through multiple bills. SB 11 30 reclassifies up to $50,000,000 in excess ARPA interest funds to the University Hospital Trust Authority for a child behavioral health project; the committee approved that measure 19–1. SB 11 31 directed up to $2,000,000 in interest to the Office of Juvenile Affairs (passed 21–0). SB 11 32 reclassified up to $7,000,000 for the State Department of Health to support rural hospital rebuilds (passed 21–0). SB 11 33 allocated up to $15,000,000 to the Department of Mental Health and Substance Abuse Services to replace capacity at Griffin Memorial Hospital (passed 21–0), and SB 11 34 included allocations of $16,200,000 for human performance projects and $14,000,000 to a pharmaceutical expansion program (passed 20–1).

The committee also approved targeted DHS funding in SB 11 42 (including $3,000,000 to the Boys & Girls Club and $600,000 to the YWCA), HB 40 29 (approximately $68,000,000 to the State Department of Health and a $1,000,000 transfer to an ALS revolving fund), and several house bills giving agencies flexibility to move leftover ARPA administrative and interest funds to close out projects. Those bills passed with largely unanimous support.

Members asked standard oversight questions: several sought detail on specific dollar amounts available for reallocation, the administrative 2% retention included in emergency management bills, and whether listed catchall categories (for example, listing broadband among eligible projects) actually received funding from the particular appropriations. Sponsors repeatedly answered that many bills reauthorize or reclassify existing interest funds and that more detailed accounting of remaining balances could be provided after the meeting.

Votes at a glance (selected): SB 11 30 — passed 19–1; SB 11 31 — passed 21–0; SB 11 32 — passed 21–0; SB 11 33 — passed 21–0; SB 11 34 — passed 20–1; SB 11 42 — passed 21–0; HB 40 29 — passed 20–1; HB 40 74 — passed 18–3; HB 40 75 — passed 21–0; HB 40 76 — passed 19–2; HB 47 7 — passed 20–1; HB 40 78 — passed 16–4; HB 40 73 — passed 21–0.

Committee sponsors said the actions were intended to ensure projects comply with U.S. Treasury guidance requiring ARPA accounts be closed out by year-end, and to move remaining interest funds to projects that can obligate and spend them before federal deadlines. Several members pressed for follow-up reporting on remaining balances and the precise amounts to be reallocated; sponsors committed to providing that information.