Joint committee recommends reclassifying ARPA funds to cover project gaps and approves multiple interest allocations

At a joint meeting of House and Senate members of the Joint Committee on Pandemic Relief Funding, lawmakers advanced a slate of motions to reclassify excess ARPA and SLFRF funds and to recommend interest-fund appropriations to fill spending gaps in water, health and workforce projects.

The committee’s co-chairs framed the session as a final push to meet federal accounting deadlines. “When we opened up the portal, we had about $18,000,000,000 worth of requests,” the Senate co-chair said, adding that guidance from the U.S. Treasury requires all paperwork and accounting to be complete by 12/31/2026, which accelerated the timeline.

Lawmakers front-loaded final recommendations to the appropriations process. Representative Hill, co-chair of the Education and Economic Development working group, reported that 25 projects in her jurisdiction were identified for close monitoring and that the Oklahoma Aviation Academy and multiple workforce training programs are producing graduates. “We are proud of the progress made in several projects, including the Oklahoma Aviation Academy,” Hill said.

Several motions were taken and approved without extended debate. Notable approvals included reclassifying $22,195,045.71 in excess funds from the Oklahoma Department of Commerce for reallocation to other obligated projects and accepting $9,832,595.03 returned from the Oklahoma Office of Emergency Management for reclassification. Representative Bowles moved both measures; both were recorded as passing on unanimous joint committee rolls.

Government Transformation and Collaboration co-chairs reported reclaimed funds from projects that returned awards. The committee approved reclassifying $384,253.05 from a food-insecurity grant appropriated to the Department of Human Services, and authorized the Oklahoma Water Resources Board (OWRB) to reallocate remaining agency ARPA/SLFRF funds and to transfer multiple interest funds to address gaps in water and wastewater projects.

Melissa Houston, who spoke for staff on implementation and accounting, summarized the practical challenge: “We are trying to forecast those projects that are making expenditures in quarter 4. There will be some fluctuation in that amount as we don't know exactly in the pipeline which invoices have been paid with federal funds.” Houston said the committee is using interest funds and excess returns to fill urgent Q4 gaps.

Health and Human Services co-chairs reported oversight of 79 projects and moves to reclassify funds for workforce and rural hospital programs. The committee approved motions including: $1,058,187 reclassified from the Healthcare Workforce Training Commission; authorization for that commission to reallocate administrative funds to obligated projects; $5,000,000 to replace bed capacity at Griffin Memorial; and reclassifications and interest allocations for OSU Medical Authority projects and the University Hospital trust for child behavioral health needs.

Votes at a glance - Commerce reclassification: Accept $22,195,045.71 in excess funds from the Oklahoma Department of Commerce for reclassification. Outcome: approved (joint committee recorded as 20–0). - OEM reclassification: Accept $9,832,595.03 in excess funds from the Oklahoma Office of Emergency Management for reclassification. Outcome: approved (20–0 recorded). - Food-insecurity/DHS: Accept $384,253.05 returned from a food insecurity grant for reclassification. Outcome: approved (21–0 recorded). - OWRB reallocation (excess funds): Accept up to $4,600,000 reclassified from the Oklahoma Water Resources Board. Outcome: approved (21–0 recorded). - OWRB interest allocation: Recommend appropriating up to $25,998,798 in interest funds to OWRB for water and wastewater projects. Outcome: approved (22–0 recorded). - Boys & Girls Clubs: Recommend $3,000,000 in interest funds to DHS for the Boys & Girls Clubs of Oklahoma. Outcome: approved (vote recorded). - YWCA: Recommend $600,000 in interest funds to DHS for the YWCA. Outcome: approved (22–0 recorded). - HWTC reclassification: Accept $1,058,187 for reclassification to other obligated projects; authorize HWTC to reallocate administrative funds. Outcome: approved (21–0 recorded). - OSU Medical Authority: Accept up to $16,200,000 reclassified for the human performance project; recommend up to $30,200,000 in interest funds (split with pharmaceutical expansion). Outcome: approved (21–0 recorded). - Griffin Memorial: Accept $5,000,000 for replacement of bed capacity. Outcome: approved (21–0 recorded). - University Hospital trust: Reclassify up to $50,000,000 for child behavioral health. Outcome: approved (21–0 recorded). - Rural hospital rebuild: Reclassify up to $7,000,000 to the Oklahoma State Department of Health. Outcome: approved (21–0 recorded).

Committee members asked for updates and clarified uses before approving many measures. On broadband — one of the largest remaining spending categories — a senator asked how roughly $200,000,000 left to spend will be executed and whether projects will be completed on time. The transportation working-group co-chair said earlier execution difficulties (including Department of Commerce application and permitting processing) had been identified and that reallocations and updated management should address pace and quality.

What happens next All approved recommendations will be reported as "do pass" to the Joint Committee on Appropriations and Budget and then advance to each chamber’s floor for final consideration as part of the appropriations process. Committee chairs reminded members that Treasury’s requirement that accounting and paperwork be complete by 12/31/2026 drives the immediate reallocation steps taken at this meeting.

Sources and attribution Quotes and details in this story come directly from the committee meeting transcript and on-the-record remarks by the committee chairs, Representative Hill, Representative Bowles, and staff member Melissa Houston. Where a participant’s full name was not supplied in the transcript, the article attributes their remarks to their role (for example, the committee co-chair) in keeping with the transcript’s speaker identifications.

Ending The committee closed with mutual thanks to working-group members, staff and partners and stood adjourned with several recommendations sent forward to the Joint Committee on Appropriations and Budget.