Kansas Senate approves $50M aviation jobs fund converting from grants to loans

March 07, 2025 | Senate, Committees, Legislative, Kansas


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Kansas Senate approves $50M aviation jobs fund converting from grants to loans
The Senate Committee on Ways and Means convened on March 7, 2025, to discuss several key financial provisions and budgetary adjustments impacting various state programs. The meeting began with inquiries regarding the source of funds allocated to the Kansas Housing Link Deposit Loan Program. Committee members sought clarification on whether these funds originated from the State General Fund (SGF) or other sources. It was confirmed that the funds were part of the state's Economic Injury Disaster Loan (EIDL) funds, which are not currently being utilized.

The committee then moved to a motion regarding the Pregnancy Resource Centers, proposing an increase in funding from $2 million to $6 million for the 2026 fiscal year. This increase aims to support the expansion of pregnancy compassion centers across the state. The motion passed with some opposition noted.

Next, the committee addressed the Aviation Jobs Fund, proposing to reallocate $50 million from the Build Kansas matching grant fund to establish a revolving loan fund aimed at creating aviation jobs. This fund would allow for loans to be issued to businesses in the aviation sector, with the state treasurer given the authority to set loan terms and interest rates. Concerns were raised about the lack of parameters surrounding the loan program, but the committee agreed to move forward with the proposal, allowing for further discussions in the conference committee.

Additionally, a proviso was introduced regarding the allocation of interest accrued from American Rescue Plan Act (ARPA) funds. Starting May 1, 2025, all interest generated from ARPA funds will be deposited into the SGF, a move that was met with support from committee members who emphasized the importance of directing these funds appropriately.

The meeting concluded with discussions on the renaming of the Dole State Office Building, which was ultimately removed from consideration. Overall, the committee made significant strides in reallocating funds and establishing new financial programs aimed at supporting job growth and community development in Kansas. Further discussions and amendments are expected as the proposals move to the conference committee for finalization.

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Scribe from Workplace AI
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