House Bill No. 1438, introduced by Patzkowsky, amends existing laws related to the administration of the Rural Economic Action Plan grant program and the Water Resources Fund in Oklahoma. The bill modifies the monetary cap on grants, increasing the maximum amount that can be awarded to a single eligible entity from $150,000 to $350,000. Additionally, it allows for the distribution of funds to cities and towns with populations below 7,000, as well as unincorporated areas, while prioritizing municipalities with populations under 1,750 and those with weaker fiscal capacities. The Oklahoma Water Resources Board is tasked with administering these funds and ensuring fair distribution through established rules.

Furthermore, the bill stipulates that no city, town, or entity will be required to provide matching funds to receive grants, and it prohibits the Oklahoma Water Resources Board from retaining any funds for administrative purposes. The amendments also include provisions for the establishment of separate accounts for fund distribution and the prioritization of applications from entities that have not previously received funding. The act is set to take effect on November 1, 2025.