Transcript Highlights:

• </c> projections are down $68 million. projections are down $68 million.
• ><c> disrupted</c> The recent federal shutdown disrupted The recent federal shutdown disrupted the<00
• </c> alignment with federal law. alignment with federal law.
• </c> group was no longer eligible for federal group was no longer eligible for federal federal<00:36:
• </c> federal Medicaid funding. federal Medicaid funding.

Committee: Senate Finance

Transcript Highlights:

• federal tax credit.
• The program provides a base compensation rate and then pays adders to projects that provide certain project
• : residential solar projects.
• The elimination of the longstanding federal investment tax credit for solar and wind projects is really
• So for community solar projects, the investment tax credit will remain in place for projects that are

Committee: Senate Senate Committee on Climate Change and Global Warming

Summary: The hearing focused on ways Massachusetts can accelerate solar deployment, lower costs, and preserve reliability as electricity demand rises and federal support for solar and other renewables changes. Chair Creem opened by emphasizing solar’s role in meeting climate mandates and peak demand, citing June heat-wave data showing behind-the-meter solar reduced wholesale prices and saved ratepayers money. Commissioner Elizabeth Mahoney of DOER said Massachusetts has grown from 3 MW of solar in 2008 to 3.5 GW today, highlighted SMART 3.0 as a flexible, evergreen incentive program, and said DOER is working on updated rates, interconnection reforms, flexible interconnection, net crediting, and a petition to the DPU to speed implementation. She also said Massachusetts joined the lawsuit over canceled federal Solar for All funding. Committee members and witnesses discussed several policy changes to speed projects before federal tax credits expire, including automated permitting, remote inspections, faster interconnection, and changes to caps on municipal and regional solar development. Senator Barrett pressed Mahoney on whether the 10 MW municipal cap and regional caps should be lifted, and on whether the state should increase its solar tax credit to offset the loss of the federal residential credit. Mahoney said the municipal cap should be revisited and that interconnection cost allocation and other market issues need to be worked out before lifting broader caps. She also said DOER is open to automated permitting and is already developing a permitting portal under the 2024 climate law. Industry and advocacy witnesses largely supported streamlining measures. Sunrun’s Bronte Payne urged removal of a proposed requirement that all net-metered facilities enroll in SMART, and recommended automated permitting, remote inspections, flexible interconnection, better hosting-capacity information, consumer protections, and continued support for Connected Solutions and virtual power plants. Permit Power’s Hannah Bernbaum and Solar App’s Matthew McAllister argued that smart permitting and remote inspections can significantly reduce soft costs and delays, with McAllister saying Solar App now operates in over 320 jurisdictions and saves about three weeks on average. They said remote inspections are already common and can be done safely with photos, video, and qualified third parties. Community solar and clean energy advocates, including CCSA’s Kate Daniel and Vote Solar’s Lindsay Griffin, supported a 10 GW solar target by 2035, a higher refundable state tax credit for low-income households, interconnection reforms, flexible interconnection, and preserving the option to build outside SMART so projects can retain renewable energy certificates. No votes were taken; the hearing was informational, and members requested follow-up materials and draft language from witnesses.

Transcript Highlights:

• WSDOT project requires it.
• It also encourages WSDOT to request any available federal funding for fish barrier removal projects and
• As well, the Federal Highway Administration has communicated to WSDOT that the federal funding opportunities
• a project coming up.
• This bill is about getting voter-approved light rail projects done responsibly. ...projects now.

Bills: SB5750 , SB6148

Committee: Senate Transportation

Keywords: electric vehicles, charging fees, state facilities, sustainability, infrastructure, regional transit authority, RTA, transit bonds, general obligation bonds, revenue bonds, bond maturity, debt limit, 25-year cap, regional mobility grant program, public transit financing, transportation funding, Washington RCW, bond issuance, municipal finance, infrastructure finance

Transcript Highlights:

• It is consistent with both Federal Highway and Federal Transit Administration's approaches to estimating
• As I mentioned, the core set of projects—so here is a visual of what those core projects look like.
• This includes $2.1 billion from the federal government, a billion from each state, and an updated projected
• This is a public works project.
• This is a public works project.

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Transcript Highlights:

• Again, the project numbers start to go up: 45 inactive projects, 21 in construction, 22 in E&D, two in
• So project numbers are quite larger here: 76 active projects, 36 in construction, 34 in E&D, six in planning
• And, you know, we move these projects along, and, you know, if we don't move now, These projects along
• Department of Agriculture have defunded the project. There's no longer a Barataria project.
• those corps projects, not DOTD.

Summary: The House Natural Resources Committee met to consider House Resolution 1, which approves the Coastal Protection and Restoration Authority’s annual State Integrated Coastal Protection Plan for fiscal year 2026-27. CPRA officials Michael Hare and Gordon Dove presented the plan, describing about $1.54 billion in proposed spending authority, a three-year outlook near $1 billion annually, and a portfolio of 143 projects focused largely on construction and implementation. They highlighted major work in multiple regions, including marsh creation, shoreline protection, levees, land bridges, barrier island restoration, the Birdsfoot Delta, Grand Isle, and the Barataria and Terrebonne basins, and said the plan is intended to restore roughly 12,000 acres and support coastal jobs and labor income. A major portion of the discussion focused on non-structural flood protection, especially home elevations and related measures being pursued with the U.S. Army Corps of Engineers. Representative Sauer questioned whether this approach represented mission creep and whether CPRA and the state should be responsible for such programs. CPRA staff responded that non-structural measures have been contemplated in the master plan, but are now treated more programmatically and at a local level; they said the state is already involved as a non-federal sponsor in many projects and has used CPRA, HUD, and FEMA funding to help offset costs. Members also discussed the scale of the program and the need to determine which agencies should lead it. Chairman Dove emphasized that the coastal program is moving forward through regional, multi-parish projects and praised cooperation among parish leaders, levee boards, ports, state officials, and federal partners. He also stated that the Mid-Barataria sediment diversion is fully defunded, its permit and coastal use authorization have been terminated, and related contracts have been settled or are still being resolved in court. Members asked follow-up questions about the diversion settlement, project tracking, and the status of expropriation-related litigation tied to the canceled project. No vote on HR 1 was recorded in the portion provided.

Transcript Highlights:

• We can fund decentralized wastewater projects, septic system type projects.
• project.
• We funded many projects, various types of projects, and these are just a few examples.
• , non-federal match.
• Federal agencies are not. We haven't done that. Federal agencies are not.

Summary: The task force met to focus on funding systems and incentive structures for a proposed regional waste infrastructure effort, including how a future WIPA framework might support solid waste planning in the Willamette Valley. Staff and members heard presentations from DEQ on the Clean Water State Revolving Fund, from Business Oregon on the Special Public Works Fund, and from Oregon State Treasury on state bonding capacity and the bond issuance process. Presenters explained how their programs are structured, how projects are scored or approved, what kinds of public entities and projects are eligible, and how interagency coordination and co-funding can work. DEQ emphasized that its revolving loan fund is driven by water-quality benefits and public-health criteria, while Business Oregon described a broader infrastructure loan program for public entities with no scoring system, and Treasury outlined the state’s debt-capacity process and the differences between general obligation and lottery bonds. Members used the presentations to discuss whether similar funding tools could support solid waste infrastructure, especially for transfer stations, regional hubs, and related facilities that may need to be built before Coffin Butte reaches the end of its lifespan. Several questions centered on whether public-private partnerships could qualify, whether equipment inside facilities could be financed, how repayment would work, and whether planning costs could be covered. DEQ and Business Oregon both said they could potentially collaborate on scoring or co-funding, but noted eligibility limits and the need for public ownership in many cases. Treasury said bond capacity is limited and competitive, especially for lottery bonds, and that project authorization generally runs on a two-year cycle, though unused authority can sometimes be reauthorized. In task force discussion, members debated whether the group should pursue a dedicated funding lane for the seven-county region rather than having local governments compete with other statewide needs. Some members stressed the importance of criteria to avoid stranded assets and to ensure funding is available when projects are ready, while others raised concerns about how cities and counties would generate revenue to repay debt during construction and early operations. The group also discussed flow control, system fees, and the need for regional collaboration among counties, cities, and haulers to create enough waste volume to support new infrastructure. Staff noted that pre-session filing materials for the legislature are due September 11, and the chair said the August meeting will focus on organizational structure and identifying partners. During public comment, Representative Kevin Mannix submitted written testimony supporting the WIPA concept and urging the task force to endorse it. Commissioner Bubba King of Yamhill County urged the task force to compare alternatives objectively and warned against adding bureaucracy before evaluating existing infrastructure and costs. Commissioners Kevin Cameron and Roger Nyquist of Marion and Linn counties described regional hub-and-spoke concepts, transfer stations, and intermodal options, emphasizing the need for planning, strategic siting, and collaboration with haulers and local governments.

Transcript Highlights:

• ><c> projects.
• But I've never, nobody has come before us and said this project and this project and this project and
• </c><01:43:08.480><c> labor</c> projects that have been project labor projects that have been project
• </c><02:04:14.400><c> law</c> um this federal way um uh federal law um this federal way um uh federal
• </c> federal standards. federal standards.

Committee: House Labor, Industrial and Rehabilitative Services

Transcript Highlights:

• </c> for capital project. for capital project.
• , especially a sewer project or water project or any project really, a building project, is partially
• :15:31.880><c> water</c> especially a sewer project or water especially a sewer project or water project
• I believe it's about $147 million worth of projects were approved with the state funding and the federal
• These are capital projects projects. These are capital projects only. only. only.

Committee: Senate Capital Investment

Transcript Highlights:

• Again, we have opportunities to attract federal grant funding for infrastructure projects.
• And the department created a couple years ago was federal roads, non-federal aid?
• And the department created a couple years ago was federal roads, non-federal aid.
• Non-federal, state roads. And federal. And federal, so not federal and state.
• Very quick: Seymour project?

Summary: The committee first heard House Bill 1157, which would create a Louisiana State Infrastructure Bank to provide another funding mechanism for transportation-related projects, including roads, bridges, rail, ports, airports, and other surface transportation needs. Chairman Borek and DOTD Secretary Glenn LaD said the goal is to leverage state, federal, local, and private dollars, using models from Florida and other states. Members asked about board makeup, staffing, project selection, administrative costs, and how the bank would differ from capital outlay and existing transportation programs. Testimony in support came from business and economic development representatives, including Michael Hecht of Greater New Orleans, Inc., who said infrastructure is critical to major economic projects and that the bank could attract outside capital. The bill was reported favorably without objection. The committee then took up several local and procurement-related bills. House Bill 860, allowing fillable electronic public bid forms, was reported favorably. House Bill 972, naming a portion of Highway 93 in Lafayette Parish the Desert Shield Desert Storm Memorial Highway, and House Bill 965, naming a portion of Highway 163 the Sergeant William Billy Earl Collins Jr. Memorial Highway, were both reported favorably after brief testimony honoring veterans and law enforcement. House Bill 692, authorizing local governments to enter group purchasing agreements, was amended and reported favorably. House Bill 685, allowing use of FAST Act cooperative procurement for public motor vehicles and rolling stock, drew support from transit officials and was reported favorably after a roll call vote, with one member voting no. The committee also advanced House Bill 982, which designates portions of highways in Morehouse Parish in memory of local residents killed in a crash after attending an LSU game; it was reported with amendments. House Bill 506, creating special prestige license plates for local high schools as a fundraiser, was amended and reported favorably. House Bill 839, lowering the contract limit for hospital service districts to use construction management at risk from $2 million to $1 million, was reported by substitute after testimony from hospital leadership and industry representatives. House Bill 1072, revising powers and emergency procurement authority for the Office of Louisiana Highway Construction, was amended and reported favorably after discussion about its relationship to DOTD and emergency repairs. Finally, the committee heard House Bill 887, which revises construction management at risk procedures, including committee makeup, scoring, and financial qualification requirements; it was amended and reported favorably. House Bill 647, creating timelines and an annual application process for waterway projects under a waterway assistance program and fund, was reported by substitute. The last major item discussed was House Bill 873, which would fund pursuit intervention technology and training for law enforcement through a $2 fee on driver’s licenses. The bill was presented alongside emotional testimony from the widow and daughter of Sergeant Grant Candies and from a St. John the Baptist Parish sheriff’s captain, all urging safer equipment and better training for officers. Members expressed strong support, and the discussion continued into funding and grant administration details.

Transcript Highlights:

• Additionally, the department provides the state match for federally led projects by the Army Provides
• the state match for federally led projects by the U.S.
• The State Water Project system and the federal Central Valley Project operate cooperatively under permits
• The Federal Highway Administration just paused indefinitely a NOFO for transportation resilience projects
• And even if federal funds are Resilience projects, and even if federal funds are brought to bear in these

Summary: The Assembly Budget Subcommittee on water and coastal resilience heard an overview of the governor’s Proposition 4 spending plan, with presentations from the Department of Finance, the State Water Resources Control Board, the Department of Water Resources, the Legislative Analyst’s Office, and later coastal agencies. Members discussed the water chapter’s major allocations for drinking water and wastewater, recycled water, tribal water infrastructure, groundwater recharge and SGMA implementation, dam safety, flood protection, integrated regional water management, Salton Sea projects, and water data/stream gauges. The LAO noted that many programs are established and have clear funding processes, but some newer or less-defined programs may warrant more detailed future budget requests and reporting. No votes were taken on the agenda items. Members raised concerns about groundwater subsidence, water deliveries from the Delta, the pace of water storage investments, instream flows, and whether bond dollars were being used to backfill General Fund reductions. Administration witnesses said groundwater recharge spending is being paced because prior years already funded substantial SGMA work, that Delta operations are governed by water quality, salinity, and species requirements, and that Proposition 1 storage projects have moved slowly because they are locally led and require permitting and financing. The Water Board and DWR said they use public needs assessments, annual plans, and existing grant processes to prioritize projects, and Finance said some General Fund programs were shifted to Proposition 4 to help balance the budget. Members also asked for clearer public tracking of bond spending and more concise future reporting. In the coastal resilience portion, the Ocean Protection Council and Coastal Conservancy described Proposition 4 funding for sea level rise adaptation, coastal flood management, habitat restoration, public access, and San Francisco Bay projects, with a multi-year rollout based on project readiness and recent large state investments. The Conservancy said it would use its existing rolling grant process, while OPC said its sea level rise grants would build on existing programs and new technical assistance. The Department of Fish and Wildlife explained its proposed use of bond funds for climate-ready fisheries, hatchery modernization, salmon monitoring, whale- and turtle-safe fishing gear, and a specific hatchery operations request tied to the Friant settlement. The LAO said the coastal chapter’s proposed first-year spending is relatively modest but generally reasonable given staffing and project readiness, while members emphasized oversight, transparency, and coordination across agencies and jurisdictions.

Transcript Highlights:

• Section 7 of that long-term project, which would ultimately replace the interim project, is currently
• In the meantime, the State Route 37 interim project, or as we like to call it, the preferred project,
• In federal waters in Southern California.
• those permits under federal law.
• So while projects with federally issued permits can continue with those existing permits following a

Summary: The committee heard a long agenda of water, parks, transportation, species protection, and fisheries bills. AB 430 would require the State Water Resources Control Board to publish an economic and environmental impact study when emergency water regulations are extended over multiple years; the author and supporters from agricultural and water groups said it would add transparency without limiting emergency authority. AB 1139 would expand a CEQA exemption to let county park agencies open existing roads and trails for non-motorized recreation, with supporters emphasizing access to nature and opponents warning about impacts to sensitive habitat, tribal resources, and fire risk. AB 929 would temporarily exempt small community water systems and managed wetlands from certain SGMA pumping reductions and fines; supporters said it would protect vulnerable communities and wetlands, while farm and water coalition opponents argued it would undermine basin-wide groundwater management and shift burdens to other users. AB 1225, creating an Accessibility Advisory Committee for State Parks, drew broad support and passed unanimously. The committee also heard AB 514, which would encourage local water suppliers to develop emergency water supplies for drought and service interruptions; it passed with broad support, though one member cautioned against using scientific research as a loophole. AB 550 would let developers seek incidental take permits for species under consideration for listing, aimed at reducing delays for clean energy projects; environmental groups supported the goal but asked for clearer standards, limits on using research as mitigation, and a fee provision, and the bill passed as amended. AB 697 would authorize an incidental take permit for the State Route 37 interim project in Solano and Marin counties, balancing congestion relief and habitat restoration; supporters stressed long commutes and urgent restoration deadlines, while opponents raised climate, sea-level-rise, and tribal concerns. The bill passed, with some members noting they would continue to work on the measure. Other measures discussed included AB 975, which would give Sutter County a narrow, temporary exemption from streambed alteration agreements for certain damaged small bridges and culverts; county officials described repeated flood damage and long permitting delays, and the bill passed as amended. AB 1056 would phase out transferability of set gillnet permits after 2027, allowing only a final family transfer; supporters framed it as a gradual response to bycatch concerns, while fishing industry opponents said it would unfairly target an existing fishery and set a bad precedent. The committee also took up AB 1146, described by the author as a response to politically motivated water releases; supporters from conservation and water organizations backed the bill. Several bills were voted out to Appropriations, some were left open for later action or add-ons, and the committee repeatedly noted it was working through the agenda without a quorum early in the hearing.

Transcript Highlights:

• Golden mussel is currently present throughout the Delta, the state and federal water projects, and the
• We said no to projects that were not immediately... management project that was done just outside of
• you can do that project.
• Council to do that project.
• Even though that federal fire burned for a long period of time, that specific project, and that's where

Transcript Highlights:

• Golden mussel is currently present throughout the Delta, the state and federal water projects, and the
• you can do that project.
• Council to do that project.
• And I guess that's the point, even though that federal fire, even though that federal fire burned for
• Even though that federal fire burned for a long period of time, that specific project—and that's where

Summary: The subcommittee began by announcing a change in the agenda order, moving item 6 ahead of item 1 and then item 7, and noting there would be no votes taken on any items that day. Item 6 covered a proposed operational efficiencies control section for the Natural Resources Agency that would let multiple departments jointly fund landscape-scale or multi-jurisdictional projects and allow Finance to transfer climate bond funds to a lead state entity. The LAO said the proposal was reasonable but suggested the Legislature consider requiring summary notification on how it is used; Finance said it would consider that request. Item 7 focused on the 2026-27 biodiversity and nature-based solutions spending plan. Finance and the Wildlife Conservation Board described the climate bond funding for habitat restoration, wildlife crossings, public access, tribal nature-based solutions, and related work, including $111 million proposed for WCB and $30 million for Salton Sea habitat and public access projects. The LAO supported the overall approach but flagged the San Andreas Corridor Program as an area where the Legislature may want to specify geographic priorities. Members discussed the pace of Salton Sea work and whether the proposed projects would count toward disadvantaged community goals. Item 8 addressed Cal Fire’s aviation contract and staffing needs for wildfire response. Cal Fire said year-round fire activity, a larger and more complex aircraft fleet, and labor market pressures justified the proposed contract increase, including more mechanics, pilots, and maintenance support. The LAO recommended approval, saying the proposal addressed health and safety concerns. Members asked about contractor staffing, competition in the bidding process, and future technology for early fire detection and suppression. The committee then took up item 1 on golden mussel containment. Fish and Wildlife described the invasive species’ spread in the Delta, the task force and response framework, and a request for eight new positions funded by Prop. 4 to support control plans, outreach, monitoring, research, and coordination with partners and law enforcement. Members pressed the department on whether the state should fund more direct decontamination infrastructure and grants to local water managers, and on the realistic goal of containing the mussel. The chair and several members emphasized the urgency of the threat and requested an itemized breakdown of the $20 million request. The hearing then moved to a broader LAO overview of wildfire prevention and response funding, where the LAO summarized the state’s funding mix and warned that ongoing wildfire resilience funding will likely decline as one-time bond and GGRF funds are exhausted, prompting discussion of long-term funding options and the balance between prevention, suppression, and community hardening.

Transcript Highlights:

• This project is also the first project labor agreement project, a project that will require a project
• This is this project is also the first project labor agreement project, a project that will require a
• project labor agreement. project, a project that will require a project labor agreement.
• These are large projects.
• projects and other regional projects that are happening.

Summary: The Senate Transportation Committee met for work sessions, public hearings, and executive action. In the work session, WSDOT briefed the committee on the U.S. 12 corridor near Walla Walla and the North Spokane Corridor. Brian White said U.S. 12 is an eight-phase project with seven phases complete, and phase eight would finish the corridor, improve freight mobility and safety, and include a jurisdictional transfer of the old highway back to Walla Walla County. He said the project remains short of full funding, including a gap between the $350 million corridor cost and the $110 million federal Rural Surface Transportation grant, but WSDOT hopes to build smaller independent-utility pieces and begin construction in summer 2027. Charlene K. then reported that the North Spokane Corridor is seven of eight highway miles open, with major remaining work on the I-90 connection and related interchanges, bridges, and trail segments. She described the project as on track for design completion in 2027 and construction completion around 2030, while noting risks tied to federal approval, tight construction space, labor and contractor availability, utilities, and community impacts. The committee also heard from Karen Messmer of the Cooper Jones Active Transportation Safety Council, who summarized the council’s 2025 report and 2026 priorities. She emphasized that pedestrian and bicyclist fatalities remain unacceptably high and urged a safe-system approach focused on safer speeds, roads, road users, vehicles, land use, and post-crash care. She highlighted recommendations including safety-based performance measures, better speed management, more local safety planning support, improved driver education, attention to micromobility and large vehicles, and faster toxicology and crash-data processing. In public hearings, the committee heard Senate Bill 6131, which would expand the Washington Traffic Safety Commission’s fatal crash review authority, designate it as a public health authority for limited access to health information, and create a confidential fatality review committee. The sponsor and Traffic Safety Commission said the bill would help identify common contributing factors in all fatal crashes while protecting confidential information; a media representative testified that the bill preserves public access to records already open and supports the goal of improving safety. The committee also heard Senate Bill 6155, which would extend disability parking placard renewal from every five years to every 20 years and remove the need for a health care practitioner’s signature at renewal; supporters said this would reduce burdens on permanently disabled people, while opponents warned it could increase fraud and misuse of placards. Finally, the committee heard Senate Bill 6238, which would raise the minimum tug escort horsepower for oil tankers in restricted waters to 3,000 horsepower or 5% of tanker deadweight, whichever is greater; the sponsor and Board of Pilotage said the change would align statute with current practice and newly adopted rules. Testimony was mixed, and the hearing closed with two people signed in pro and two con. In executive session, the committee advanced several bills. It passed Senate Bill 5746 on EV charging infrastructure property crime, Senate Bill 5824 on fifth wheel travel trailer length, Senate Bill 6110 on e-bikes and e-motos, Senate Bill 5839 on county ferry district passenger-only service, and Senate Bill 6148 on regional transit authority bond terms, all with due pass recommendations to the Rules Committee. An amendment to SB 6110 adding several state agency leaders to the e-moto work group was rejected. The committee adjourned after signing committee reports.

Transcript Highlights:

• You mentioned the federal government.
• Which manages the federal water project that intertwines with our own, our U.S.
• And so the $45 million will let us build five temporary projects, interim projects that are going to
• Additionally, each project is contingent on a variety of state, federal, and local permits, assessments
• So the projects are there.

Summary: The Assembly Budget Subcommittee on Climate, Crisis, Resources, Energy, and Transportation opened its first hearing on the governor’s natural resources budget with Secretary Wade Crowfoot of the Natural Resources Agency. Crowfoot reviewed California’s recent climate and environmental challenges—drought, wildfire, heat, sea level rise, and federal uncertainty—and highlighted progress on clean energy, zero-emission vehicles, wildfire resilience, water management, coastal planning, conservation, tribal land return, and streamlined project delivery. Members praised his engagement and the administration’s work with tribes, and Crowfoot emphasized that the administration is focused on finishing major projects, improving nature-based solutions, and considering whether some temporary streamlining measures should be codified. He also discussed the Mediterranean Climate Action Partnership and said the state is working with other Mediterranean-climate governments on wildfire, drought, and heat response. Members and the LAO then focused on budget conditions and priorities. The Legislative Analyst’s Office said the state budget remains precarious despite strong revenues, with the governor’s proposal relying on borrowing and reserves and leaving large out-year deficits unresolved. The LAO urged a high bar for new spending, especially in a deficit environment, and recommended prioritizing immediate health and safety needs, avoiding new ongoing commitments, and thinking carefully about special funds. On Proposition 4, the LAO said the administration’s approach generally appeared reasonable and consistent with the bond, but noted implementation has been slow and that the Legislature may want to use appropriations language to shape broad programs such as home hardening, outdoor recreation, and climate education. The chair stressed that climate and environmental funds should be used for their intended purposes and that wildfire spending should shift more toward community hardening and home protection. The hearing then turned to water resilience and Proposition 4 spending. Department of Finance and department staff outlined the bond’s water-related funding for safe drinking water, drought, flood, water recycling, stormwater, groundwater management, dam safety, and the State Water Project. Members pressed for details on how funds would be prioritized, how grants would reach disadvantaged communities, and how the state would track the bond’s 40% target for vulnerable communities. Staff said new tools and reporting systems are being used to monitor allocations, and that AB 107 and related changes should speed up grant implementation by reducing redundant regulatory steps. The committee also discussed dam safety needs, State Water Project repairs, groundwater implementation grants, and the risk of relying on uncertain future revenues from the Salton Sea lithium tax. No votes were taken, and the hearing was informational only.

Transcript Highlights:

• But the lack of access to relevant federal data due to the federal government shutdown does have potential
• data due to the federal relevant federal data due to the federal government<00:03:28.400><c> shutdown
• </c> services without benefit of federal aid. services without benefit of federal aid.
• </c> 1.9% more than we projected in November. 1.9% more than we projected in November.
• </c> federal funds supporting this program. federal funds supporting this program.

Summary: Minnesota Management and Budget officials presented the February 2026 budget and economic forecast, saying the state remains in a strong financial position but faces continued structural imbalance and significant uncertainty. Commissioner Aaron Campbell said the FY 2026-27 balance is now projected at more than $3.7 billion, up about $1.3 billion from November, and the FY 2028-29 planning period is projected to end with a $377 million positive balance. He emphasized that the improvement comes largely from higher projected revenues, especially individual income and corporate franchise taxes, but warned that the state is increasingly reliant on more volatile sources such as capital gains, interest income, and corporate profits. State Economist Dr. Anthony Becker said the national outlook improved slightly, with stronger projected GDP, consumer spending, and investment, but weaker payroll growth and ongoing trade-policy uncertainty. He noted that the forecast was complicated by missing federal data because of the federal shutdown, and that tariffs, immigration policy, equity markets, and possible AI-related shifts all present risks. Revenue projections were raised for the current biennium, including individual income tax receipts, sales tax revenue, corporate franchise tax revenue, and other revenues, while Becker stressed that federal funding threats, especially involving Medicaid and other entitlement programs, could materially alter the outlook. State Budget Director Anna Mingi said general fund spending in the current biennium is projected to be $68 million lower than previously estimated, but planning-year spending is up $152 million. The biggest spending changes came from education, where special education costs rose sharply after updated local spending data, and from human services, where a new prepayment review process for certain Medicaid benefits reduced projected spending by $133 million this biennium and $105 million in the next. She also said discretionary inflation is now estimated at $1.04 billion, up $104 million from November. Campbell closed by saying the state’s reserve remains at a record $3.8 billion and that Minnesota’s AAA bond rating and reserve policy help protect against downturns. He cautioned, however, that the long-term structural imbalance remains about $3.4 billion in the planning years, or $2.3 billion excluding discretionary inflation, and urged policymakers to offset any new spending with reductions. No votes or formal actions were taken; the meeting was a presentation and question-and-answer session on the forecast.

Transcript Highlights:

• </c> the project plus O&amp;M once that project the project plus O&amp;M once that project is<00:09:08.480
• If there's time, Madam Chair, I can go into a little bit about the federal funding projections into the
• </c> project backlogs, and uncertain federal project backlogs, and uncertain federal support. support
• This project Sanitary Sewer project.
• </c> projects listed. projects listed.

Committee: Senate Capital Investment

Transcript Highlights:

• Similarly, the bill authorizes $800 million for highway projects that are not eligible for federal aid
• So the $2.3 billion is right, that for the federally aided highway projects is authorized, I believe
• Yeah, thank you, that's a great question, because this is a tricky one for federally aided projects.
• reimbursement that is generally around 80% for those federally aided projects.
• federally aided projects.

Committee: Joint Joint Committee on Bonding, Capital Expenditures and State Assets

Summary: The Joint Committee on Bonding, Capital Expenditures and State Assets held a public hearing on H. 5279, a transportation bond bill financing long-term improvements to municipal roads and bridges. MassDOT and A&F testified in support, describing the bill as a major transportation investment package centered on a $300 million annual Chapter 90 local aid program, with $200 million distributed by the traditional formula and $100 million by lane miles to better support rural communities. They also outlined funding for MBTA rail reliability and modernization, transportation projects that support housing production, a new DCR parkway resilience and safety program, and reauthorizations of existing highway and municipal grant programs such as the Municipal Pavement Program and Shared Streets and Spaces. Witnesses said the bill would help address aging infrastructure, improve safety and resilience, support housing development, and leverage Fair Share surtax revenue through the Commonwealth Transportation Fund. They explained that some authorizations are structured to allow the state to issue special obligation bonds, and clarified that the bill authorizes the full spending amount for federally aided projects even though the state only borrows the 20 percent match, with the federal government reimbursing the rest. Committee members asked about bridge repair needs, the size of the backlog, how housing-related transportation funds would be allocated, MBTA vehicle procurement, and whether rural communities would have fair access to the new funding streams. Several members praised the administration’s financing approach but urged future Chapter 90 increases to keep pace with inflation and requested more attention to rural municipal capacity and bridge safety needs. The Massachusetts Municipal Association also testified in strong support, emphasizing that Chapter 90 is the most important tool for cities and towns to maintain local roads and bridges and urging prompt passage before construction season. No votes were taken; after testimony concluded, the committee adjourned.

Transcript Highlights:

• So the map on the screen shows a total of 20,206 identified projects, and these are projects that are
• So the map on the screen shows a total of 20, 206 identified projects, and these are, these are projects
• Now, the LRTP does reflect MPO project priorities, Now, the LRTP does reflect MPO project priorities
• The larger transportation projects, whether they be state-funded or federally funded, are competitive
• dollars for a larger project and then still getting dollars for smaller projects in our counties.

Committee: Senate Transportation

Summary: The Senate Committee on Transportation met to hear presentations from the Florida Department of Transportation on rural arterial roadways and transportation resiliency, followed by a panel discussion on metropolitan planning organizations (MPOs). FDOT’s Will Watts described the state’s growing population and travel demand, emphasizing that rural arterials are critical for connectivity, freight movement, evacuation routes, and congestion relief. He outlined FDOT’s project selection factors, noted thousands of identified rural arterial needs with billions in unfunded demand, and explained that the department uses community input and long-range planning to prioritize safety, capacity, and economic development. Watts then discussed resiliency planning for hurricanes and flooding, focusing on structural design, storm readiness, and drainage. He highlighted efforts such as elevated bridges, wave attenuators, coastal armoring, drainage upgrades, and materials testing at FDOT’s research facilities to extend service life and reduce storm damage. Committee members asked about local project selection, materials research, LiDAR use, and legislative support; Watts said local coordination drives project priorities and asked lawmakers to protect the Transportation Trust Fund. The MPO panel, led by FDOT’s Kim Holland, explained that MPOs are federally required in urban areas over 50,000 population and that Florida has 27, the most in the nation. Holland said MPOs identify and prioritize transportation needs through long-range plans and public engagement, and she noted that several regions are exploring consolidation after the 2020 Census, especially in Tampa Bay and Southwest Florida. Representatives from MetroPlan Orlando, Forward Pinellas, Pasco MPO, and Hillsborough discussed their structures and the potential benefits and challenges of merging, including representation, governance, funding, and maintaining local voice. Members generally supported regional collaboration, urged patience as studies continue, and emphasized the need for transparent public engagement, while the committee adjourned after no further business.

Transcript Highlights:

• So because these were funded with federal ARPA dollars, each of these projects is on a very tight time
• is the right project to go forward with, or projects to go forward with, and how do we do that most
• These are real projects.
• These are real projects.
• And so that's what it does: it makes the projects more risky, it makes the projects more expensive.

Committees: Senate Natural Resources , Senate Senate Natural Resources Committee of Reference