An Act Relating to: interest earned on coronavirus state and local fiscal recovery funds. (FE)
Summary
SB280 would require $172 million to be transferred, or “lapsed,” to Wisconsin’s general fund from a federal program revenue appropriation held by the Department of Administration. The bill is narrowly focused on interest earned on advanced Coronavirus State and Local Fiscal Recovery Funds, which are federal pandemic-relief dollars. According to the bill analysis, the state had reported roughly $171.5 million in interest earnings as of the end of April 2025, and the bill sets the lapse amount slightly above that figure.
In practical terms, the bill would change how those interest earnings are treated in state finance by directing them into the general fund rather than leaving them in the federal program revenue appropriation. The bill cites existing law that, unless otherwise provided, miscellaneous receipts such as interest earnings are credited to general purpose revenues of the general fund. Its effect is primarily fiscal and administrative, and it does not create a new program or regulate private parties.
Impact
SB280 would amend state fiscal treatment of interest earned on federal coronavirus recovery funds by moving $172 million from the Department of Administration’s federal program revenue appropriation to the general fund. This would increase general fund resources and reduce the balance available in the specific appropriation tied to the Coronavirus State and Local Fiscal Recovery Funds. The bill affects state budgeting and accounting practices under s. 20.505 (1) (mb) and related lapse authority, but it does not directly alter substantive policy areas outside state finance.
Sentiment
The available record suggests the bill was introduced as a fiscal measure with support from a broad group of Republican senators and assembly cosponsors, indicating interest in capturing the interest earnings for the general fund. There are no committee transcripts or recorded votes in the provided material, so there is no documented floor or committee debate to show opposition or support beyond sponsorship. The bill ultimately failed to pass pursuant to Senate Joint Resolution 1, so despite its straightforward fiscal purpose, it did not become law.
Contention
The main point of contention is likely the use of interest earned on federal pandemic-relief funds: whether those dollars should remain associated with the federal recovery-fund appropriation or be redirected to the general fund for broader state use. Supporters appear to favor the lapse as a budgetary transfer of unneeded interest earnings into general revenues. Potential opponents, though not identified in the provided record, could argue that the funds should stay tied to the original federal-purpose account or be reserved for pandemic-related obligations and local recovery uses.