On April 9th, the House of Representatives passed House Bill 55, An Act making appropriations for the fiscal year 2025 to provide for supplementing certain existing appropriations and for certain other activities and projects. The $1.32 billion spending bill is the House version of the Innovation and Capital Fund supplemental budget, and includes $1.26 billion in spending supported by surplus surtax revenues collected in Fiscal Year (FY) 2023 and FY 2024 and currently held in the Education and Transportation Innovation and Capital Fund.

This brief analyzes the House’s bill in relation to MTF's three principles for the use of surplus surtax and provides additional details on the specific spending items for education and transportation. Finally, the brief ends with a look ahead at how this bill will inform the FY 2026 budget development process.