House Appropriations Committee reviews ARPA shortfall, deadlines and timeline for budget adjustment

The House Appropriations Committee on Jan. 21 reviewed the status of American Rescue Plan Act (ARPA) spending, discussed a remaining shortfall affecting housing programs and set a tight calendar for budget-adjustment work ahead of the governor's budget address.

Committee Chair (name not specified), opening the meeting, said committees of jurisdiction had been asked to deliver letters outlining requested changes by the end of day Thursday, with occasional late submissions expected. "If you have language that needs to happen because you've talked to people, there are a couple of places where I know that's happening," the chair said.

The chair walked members through how ARPA money had been allocated when it arrived: roughly three broad buckets of about $250 million each for climate-related projects, workforce and community initiatives, and housing. Specific appropriations were later directed to clean water, housing projects and other categories shown on a spreadsheet prepared by budget staff, the chair said. The committee was reminded of the Dec. 31, 2024 obligation deadline for ARPA funds and told that uptake on projects was higher than anticipated earlier in the process.

"There’s about $26,000,000 I think is what we ended up with," the chair said, describing the residual ARPA balance that did not cover all hazard-mitigation and housing contingencies. The chair also referenced a larger set of contingencies where the administration had proposed shifting funds, including an $89,000,000 suggestion noted in the presentations shown to the committee.

Committee members were told the immediate steps are: (1) standing committees send written letters identifying gaps or language changes they want included in the budget adjustment, (2) the joint fiscal office (JFO) and committee staff will assemble submitted language, and (3) the committee will review consolidated language during a rapid markup schedule that could require evening work after the governor's budget address.

Key dates and process items noted in the meeting: - Committee letters due end of day Thursday (with occasional Friday morning submissions possible). - A public hearing is scheduled for Thursday to gather testimony relevant to the budget adjustment. The chair said, "We'll also have the public hearing on Thursday. So we'll get more information about what people need." - The revenue forecast will be released the next day and is expected to inform how much additional money is available for the current fiscal year. - The governor's budget address is scheduled for a week from the meeting; the chair said the administration has indicated about $87,000,000 in reserves that could be proposed for FY26 and that timing decisions may affect whether some funds are spent in the current fiscal year or held for FY26.

The chair described how the committee will work with the JFO and agency staff during a fast turnaround: JFO may be working over the weekend to compile language; the committee will reconvene early the following week to proof and correct draft changes and to catch errors. The chair emphasized that some items are straightforward and others will require drafting assistance from legislative counsel or committee staff, depending on complexity.

Committee staff and members raised operational matters including organizing files (OneDrive or other storage), the availability of an index compiled by staff, and logistics for a joint public hearing with the Senate Appropriations Committee. The committee was also told that Tom Govett, the legislature’s economist, will attend a joint session to take questions during a scheduled meeting with the Senate.

No formal motions or votes were recorded on budget policy during this meeting. The committee’s next steps are procedural: collect committee letters, hear public testimony on Thursday, review the revenue forecast, receive the governor’s FY26 proposal, and then mark up the budget adjustment based on the assembled information.

The chair closed the meeting reminding members that some funding choices will hinge on the revenue forecast and on whether money should be spent in the current fiscal year or reserved for FY26. "We just can't spend it twice," the chair said, noting that committees should prioritize written language for any requested changes so staff can assemble a clear draft for markup.