A capital outlay provision in Louisiana's HB2 budget bill sets aside millions for local infrastructure—but most trade contractors don't know it exists.
Most construction and trades owners in Louisiana have never heard of the Local Government Assistance Program buried in HB2, the state's comprehensive capital outlay budget. That's a problem, because up to $15.1 million in state funds are available to support infrastructure and capital improvement projects—and your business may qualify to bid on or partner in them.
Section 1(A) of HB2 (page 7, project 578163) appropriates approximately $15.1 million in state capital outlay funds for the Local Government Assistance Program during fiscal year 2026–2027 (July 1, 2026 through June 30, 2027). These are real dollars intended to fund infrastructure and capital improvements for local governments and non-state entities.
The key word here is non-state entities. That can include small businesses operating through or alongside local government-sponsored projects, provided they work through what's called a "cooperative endeavor agreement." This is a formal partnership structure between your business and a local government entity—a city, parish, or special district—that allows private contractors to participate in publicly funded capital work.
The Office of Facility Planning administers these grants. Rather than applying directly to the state, your path typically runs through your local government. If your city or parish is planning infrastructure work—water systems, roads, public buildings, drainage, or similar capital projects—they can use these funds as part of their financing strategy, and they'll need contractors to execute the work.
The cooperative endeavor agreement is the legal mechanism that makes this possible. It defines the terms, responsibilities, and compensation structure between the local government and your business. It's not a handout; it's a structured way for public entities to partner with private contractors on capital projects using state funds.
There's a procedural requirement worth noting: Priority 5 bonds associated with this program require a non-cash line of credit before an award can be made. This is a financing mechanism, not a barrier, but it means local governments using these funds may need to secure credit arrangements beforehand. If you're bidding on or partnering in a project funded this way, understand that your local government partner will need to have this in place.
If you're a general contractor, electrician, plumber, HVAC specialist, or other trades professional, this program creates potential project opportunities. The money is designated for capital work—the kind of infrastructure that requires skilled trades. The window is fiscal year 2026–2027, so if a local government project is in planning now, this could be part of the funding mix.
The practical step: Stay connected with your city or parish government. Ask your local economic development office or public works department whether they're planning capital projects and whether they're considering the Local Government Assistance Program as a funding source. If they are, you'll want to be in the conversation early.
Source: Louisiana HB2, Section 1(A), page 7, project 578163; administered by the Office of Facility Planning.