Whenever the general assembly has appropriated funds to be used for making payments as authorized in sections 251.032 to 251.038, the state department of economic development shall notify the respective regional planning commissions of the amount allocated to each regional planning commission and that an application for the funds may be made upon forms provided therefor by the department of economic development. Upon receipt of application for the allocated funds from a regional planning commission, the department of economic development shall review the application and advise the governor before state funds are allocated. Upon approval of the governor, the department of economic development shall allocate the funds. Any portion of any state or local funds allocated under sections 251.032 to 251.038 may be used to qualify for matching federal funds.