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HB 2

New Fiscal Year Supplemental Appropriations

2026 General Session Introduced by Val Peterson

Allocates substantial one-time and ongoing funding to construct the Pioneer Trail and related facilities, funded by multiple state sources across departments.

Governor Signed
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Bill Summary · HB 2

Overview

HB 2, New Fiscal Year Supplemental Appropriations (Utah, 2026), is a supplemental budget bill that makes various one-time and ongoing appropriations across state agencies and programs for the upcoming fiscal year. The bill, as amended by House Amendments (Amendment 1), reallocates and designates funding for capital projects, programs, and a number of one-time expenditures aimed at supporting state government operations, infrastructure, and specific initiatives such as the Pioneer Trail Foundation. The bill has been enacted into law as of March 26, 2026.

Main purpose and intent

  • Provide supplemental funding for the new fiscal year to support operations, capital projects, and targeted initiatives.
  • Create or designate direct award grants and one-time transfers to support specific organizations and infrastructure projects, notably related to the Pioneer Trail Foundation and related facilities.
  • Adjust General Fund and related accounts to reflect new appropriations and transfers, with some revenue impacts and overall net financial effects.

Key provisions and changes

  • Direct award grants and targeted allocations:

    • Governor's Office of Economic Opportunity (GOEO):
    • $200,000 direct award grant to the Utah Micro Loan Fund in FY 2027 to expand access to startup and early-stage capital for small business owners.
    • $5,000,000 direct award grant to the Pioneer Trail Foundation in FY 2027 for the construction of the Pioneer Trail.
    • $175,000 direct award grant to the Five County (likely five-county area) for related purposes (amendment text references line items; the exact program context is to be clarified in the final bill language).
    • Department of Natural Resources / Office of the Great Salt Lake:
    • One-time General Fund transfer of $2,500,000 to support the Great Salt Lake initiatives (program line items under the Office of the Great Salt Lake) in FY 2027, with a note about future use under the Outdoor Adventure Infrastructure Restricted Account for Pioneer Trail Foundation construction.

  • Capital Improvements and Pass-Through Transfers:

    • Capital Budget - Capital Improvements:
    • Up to $1,000,000 direct award grant from Capital Improvements funding to the Pioneer Trail Foundation for renovations and improvements to Council Hall and other Capitol Complex facilities to support construction of the Pioneer Trail in FY 2027.
    • Capital Budget - Pass-Through:
    • From General Fund (one-time) $500,000 and From Income Tax Fund (one-time) $1,500,000 to the Pioneer Trail Foundation for related construction activities in FY 2027.

  • Transportation and Infrastructure funding:

    • Active Transportation Investment Fund (one-time) $2,000,000 for Pass-Through:
    • Department of Transportation direct award grant to the Pioneer Trail Foundation for construction of the Pioneer Trail in FY 2027.
    • Aeronautics and related transportation programs:
    • Department of Transportation direct award grant of $3,000,000 one-time from Aeronautics funds to the Pioneer Trail Foundation (FY 2027).

  • Schedule of Programs (various line items):

    • Land and Water Conservation: $6,000,000
    • Off-highway Vehicle Grants: $2,500,000
    • Additional one-time allocations to support Pioneer Trail Foundation construction projects as described above.

Who/what is affected

  • Pioneer Trail Foundation:
    • Receives multiple direct grant awards and one-time funding across several funding sources (General Fund, Income Tax Fund, Capital Improvements, Pass-Through, Active Transportation Investment Fund, and Aeronautics).
    • Funding supports construction of the Pioneer Trail and related facilities, and renovations to Capitol Complex facilities (Council Hall) to accommodate infrastructure needs.
  • Utah Micro Loan Fund:
    • Receives a $200,000 direct grant in FY 2027 to bolster startup and early-stage capital access for small businesses.
  • Five County:
    • Receives a $175,000 direct grant (amendment item), details to be clarified in final bill text.
  • Department of Natural Resources / Office of the Great Salt Lake:
    • Receives a $2.5 million one-time General Fund transfer for Office of the Great Salt Lake initiatives linked to Pioneer Trail infrastructure.
  • State agencies involved in Capital Improvements, Pass-Through, Active Transportation, and Aeronautics:
    • Authorized direct awards and pass-through funds to the Pioneer Trail Foundation.

Procedural and timeline aspects

  • Effective dates and fiscal years:
    • Several appropriations are designated as FY 2027 one-time or ongoing (as specified in the amendment language).
  • Funding sources:
    • General Fund, Income Tax Fund, Capital Improvements, Pass-Through, Outdoor Adventure Infrastructure Restricted Account, Aeronautics, and other dedicated/restricted funds.
  • Legislative process:
    • Bill originated in the Utah House; amended (Amendment 1) to adjust allocations.
    • Passed the House and Senate, signed by the Governor, and transmitted for the Speaker’s signature. Enactment occurred in March 2026.
  • Fiscal notes:
    • The fiscal note indicates a net impact of significant one-time and ongoing appropriations across multiple funds, with a net all-funds impact of substantial expenditures in FY 2027 and beyond, balanced by various fund transfers and revenue adjustments.

Fiscal impact snapshot

  • Net all-funds effect for FY 2027 includes large one-time and ongoing expenditures (primarily from General Fund and related sources) to support the Pioneer Trail infrastructure and related programs.
  • Revenue effects include a mix of operating appropriations and transfers, with some net reductions in General Fund-relevant revenue in FY 2027 due to adjustments from various funds.
  • Overall, the bill consolidates multiple one-time capital and infrastructure investments, with targeted program funding for economic development and outdoor infrastructure projects.

Bottom-line

HB 2, as amended, is a comprehensive supplemental appropriations package that prioritizes infrastructure construction for the Pioneer Trail (including facilities renovation and transportation-related developments), supports economic development through small-business startup capital, and allocates funds for natural resources and outdoor recreation programs. It leverages a mix of general and restricted funds, with multiple one-time transfers and capital grants slated for FY 2027.

Compiled from official sources — confirm details with the bill’s official record.

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