Senate authorizes $16M grant for rare‑earth processing project; sponsors cite jobs and security, critics raise constitutional questions

The Wyoming Senate adopted an amendment Feb. 20 that converts a previously proposed loan into a $16 million state grant intended to help a rare‑earth processing project near Upton scale up.

Sponsor Sen. Love described the project as a strategic investment in domestic supply chains, saying, “Wyoming stands at the forefront of a critical American first opportunity…leading the charge to shatter China’s strangle hold on rare earth elements.” Supporters said the project already has roughly $30.9 million in private matching funds and could create hundreds of jobs and new tax revenues.

Opponents, including Sen. Scott, questioned whether direct grants to private entities fall within Article 16, Section 6 of the Wyoming Constitution, which limits state gifts or loans to private parties. “This is exactly the sort of thing that is prohibited by Article 16, Section 6,” Sen. Scott said on the floor, prompting back-and-forth about legal precedent and whether the investment is justified by public benefit and matching private funds.

The amendment passed 23-8 on the Senate floor. Supporters framed the measure as a one-time strategic investment with high leverage; opponents urged caution and suggested potential legal risk.

What happens next: The grant provision is now part of the Senate’s budget package and will be negotiated with the House in conference. Legal and contract details — including matching funds, reporting, and oversight — will determine whether the funds are released and how the project proceeds.