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Committee backs bill to keep unspent grant‑matching funds available across fiscal years
Summary
AB 554 would allow money remaining in the state grant matching account to be carried forward rather than reverting to the general fund, keeping federal cost‑share funds available while the state awaits federal notices of awards.
CARSON CITY — The Senate Committee on Government Affairs voted to pass Assembly Bill 554, which would change how the state treats unused grant matching funds and allow unspent money in the grant matching account to carry forward into the next fiscal year instead of reverting to the state general fund.
Akia Sanders, director of the Office of Federal Assistance, told the committee the account currently holds $897,603.56 unexpended, with about $290,000 effectively available for grant matches because the state waits on federal notices of award before committing funds. Sanders said delays at the federal level have prolonged notice‑of‑award timelines, sometimes 12–18 months, leaving matching funds in limbo.
“This bill will allow for the continued use of this cost share, which decreases burdens,” Sanders said, explaining the change is administrative cleanup and has no fiscal impact on the state budget. Testimony noted the account is budget account 1334 and that the bill would take effect upon passage and approval.
There was no public opposition at the hearing. During the committee’s work session the panel voted to do pass AB 554; Vice Chair Orangewell moved the motion and Senator Daley seconded. The motion carried unanimously.
If enacted, the bill would carry forward current funding in the grant matching account into the next fiscal year so the state can continue to use the funds as federal awards move through extended review periods.
