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 raises the cap on grants from the Water Resources Fund from $100,000 to $300,000. The bill also stipulates that no city, town, or entity receiving funds will be required to provide a matching contribution, and it mandates that all funds appropriated for these programs be distributed to eligible entities without retention for administrative purposes by the Oklahoma Water Resources Board.

The bill emphasizes prioritizing funding for smaller municipalities, particularly those with populations under 1,750, and establishes a structured approach for the distribution of funds through ten separate accounts. It also includes provisions for the Oklahoma Water Resources Board to create rules for fair and equitable distribution of funds, ensuring that no single entity can dominate funding opportunities. The act is set to take effect on November 1, 2025.