The House Appropriations Committee voted to recommend a do-not-pass on Senate Bill 1997, which would have established a $5 million rural endowment fund, after concluding the regional-council-administered alternative (Senate Bill 2390) was the preferable vehicle for supporting small communities.

Representative Nelson moved a do-not-pass on SB 1997; the committee adopted the motion on a recorded roll call (vote recorded in the transcript as 22 yes, 0 no and 1 absent). Committee discussion noted that many small communities already have local foundations and that a regional-council program could leverage existing staff and governance to deliver grants more effectively.

Members said the endowment model likely would not generate meaningful annual payouts in the near term and would require building administrative capacity. Instead, several members recommended one-time grant funding administered by regional councils to expedite assistance to rural towns, preserve or reopen grocery stores and support local projects.

Representative Nelson agreed to carry SB 1997 with a do-not-pass position and said the committee may position it in conference with the other rural-development bill depending on floor action.