Lawmakers review Section 5 ‘Building Communities Grants’ proposal as state agencies report rising demand

Buildings and General Services Commissioner Wanda Manoli told the Corrections & Institutions Committee on Tuesday, Feb. 4, that Section 5 of the capital bill contains the Building Communities Grants Program and that state agencies are recommending continued funding for multiple subprograms in FY2026 and FY2027.

The proposal funds several competitive, locally driven grant programs administered by different state agencies. Manoli said the Department of Buildings and General Services (BGS) administers the Recreational Facilities Grants, Human Services and Educational Facilities Grants, and the Regional Economic Development Grant Program and that each awardee may receive up to $25,000 and must complete their project within two years.

The Building Communities Grants bundle funds small capital projects in municipalities and nonprofit organizations, including recreational improvements, human‑service facilities, historic preservation, barn repairs and cultural facility upgrades. Manoli said the program is governed by statute and by multi‑member committees that include legislative and community appointees; she identified the statutory committee guidance as Title 24, Chapter 137.

Manoli…