Legislation geared toward proper use of state grant funding passes state House, heads to state Senate
HARRISBURG, Nov. 14 – State Rep. Malcolm Kenyatta, D-Phila., today announced that his legislation, House Bill 842, which would prevent the misuse of state grants or loans, was passed by the state House.
Also known as the Clawback Act, H.B. 842 would require all new state grant and loan programs to include language to address the misuse of funding when entities fail to meet program guidelines and metrics.
“Our state’s grant programs are essential tools designed to support the needs of our residents,” Kenyatta said. “These programs do so much good, but it’s imperative that we enact legislation to address the potential misuse of state grants in order to protect taxpayers’ money.”
State Rep. Jenifer O’Mara, D-Delaware, who also is a prime sponsor of this legislation, echoed Kenyatta’s remarks.
“Ensuring accountability in grant and loan programs isn't just about financial prudence; it's a commitment to safeguarding taxpayer trust in the system that serves our communities, “O’Mara said. “When taxes veer from their intended purpose, the very foundation of a functional system begins to crumble.”
Another co-prime sponsor, state Rep. Maureen Madden, D-Monroe, noted the importance of the bill.
"If you apply for and receive state funding for a project, then you should adhere to the stipulations that come with the funding," Madden said. "Misuse of grant funding for any reason is unacceptable and unethical. I'm delighted to support Representatives Kenyatta and O'Mara in cosponsoring this Clawback Act legislation to protect taxpayers by targeting the rare but costly misdeeds in the state grant and loan processes."
If signed into law, H.B. 842 would set a standard that all state grant and loan recipients must follow and ensure taxpayer money is being spent appropriately. Additionally, this measure would mandate that the misused funding be repaid to the commonwealth in a timely manner.
H.B. 842 now heads to the state Senate for consideration.