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Bill to create ag grant revolving fund wins committee backing; DAB seeks half of NICRA to seed matching fund
Summary
The Committee passed HB2246, which would establish an ag grant program and revolving fund administered by the Department of Agriculture and Biosecurity; DAB told members it seeks to deposit 50% of negotiated indirect cost recovery from awarded grants into the fund to cover matching requirements and build capacity to pursue more grants.
The Agriculture and Environment committee passed HB2246 on March 23, clearing a DAB administration bill that would create an agricultural grant program and a revolving fund to support grant application, execution, reporting and auditing.
Sharon Hurd of the Department of Agriculture and Biosecurity told the committee the proposed fund would be seeded from a portion of negotiated indirect cost recovery (NICRA) from federal and other awarded grants. "This is a fund that is of no cost to the state...What we're asking is that 50% of this, the grant funding that comes in, the NICRA...be deposited into the fund for the purpose of generating more revenue," Hurd said, adding that NICRA was cited in testimony at 12.5%.
Hurd said the special fund would allow DAB to commit to matches on competitive grants, pay travel and research costs, and otherwise expand the department’s capacity to secure additional funding. She offered a concrete example to illustrate the problem: a previously available $500,000 grant for a mobile slaughterhouse required a 25% local match ($125,000), which DAB said it could not commit and therefore lost the opportunity.
Members asked about award criteria for the ag fund; Hurd said the department envisioned using the fund to supply match for high‑probability grants that DAB judged it could successfully secure and administer, and to fund activities that would increase the department’s competitiveness for federal and private grants. The committee recorded the department’s support for HB2246 and adopted technical amendments before voting; the motion passed with all four members present voting in favor.
The committee requested follow‑up from DAB on specific award criteria and additional cost details. If enacted as amended, DAB will be authorized to retain a portion of indirect cost recoveries from awarded grants to seed the revolving fund and use those resources to increase match capacity and grant readiness.
