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House narrows and approves funding pilot for economic development in disadvantaged rural communities
Summary
The House substituted and passed a pared-back version of Senate Bill 57 to create a one-time $250,000 pilot fund administered by the Board of Economic Development to support infrastructure projects in third- through sixth-class counties.
The House moved under suspension of the rules to substitute Senate Bill 57 and replace an earlier, broader proposal with a first-substitute that narrows scope and funding. Representative Ferry, speaking for the substitute, said the original $5 million concept was prioritized by the Senate down to $250,000; the substitute creates a restricted fund to support loans and grants for infrastructure projects (drainage, roads, utilities) in underserved rural counties.
Representative Ferry described the program as a pilot: applicants must show need and project merit, and the Department of Community and Economic Development will have rulemaking authority to administer the grants. Lawmakers asked about retroactive use, per-project caps (originally $750,000 then $75,000 quoted during debate), and whether the funding could be matched to other programs.
Representative Noel and others warned that $250,000 is a modest start for counties that lack tax base because of extensive federal land ownership, but supporters said the pilot could demonstrate demand and support larger appropriations later.
The House recorded passage on the floor (reported as 69 yes, 0 no) and the bill will return to the Senate.
