American Rescue Plan Act of 2021: What To Know About the More Than $350 Billion in Funding for State and Local Governments

As part of the ongoing health and economic recovery effort from the COVID-19 pandemic, the United States Congress has passed the American Rescue Plan Act of 2021. Included in the stimulus package are allocations of funds for state and local governments to support these recovery efforts. Here’s an overview of what that means.

Coronavirus State and Local Fiscal Recovery Funds

The Coronavirus State and Local Fiscal Recovery Funds allocations include:

• $350 billion to be used for responding to the COVID-19 public health emergency, to offset revenue losses, fuel economic recovery, and to provide premium pay for essential workers
• $10 billion in a new Coronavirus Capital Projects Fund for critical capital projects directly enabling work, education, and health monitoring, including remote options
• $2 billion in a county and Tribal assistance fund to make payments to eligible revenue-sharing counties and Tribes

This means that these funds can be used in multiple ways to support local economic recovery efforts, which could range from securing PPE for future emergency response readiness to preparing for broadband infrastructure improvement projects, or new safety equipment that may be needed across public works, water and sewer departments, fire and police departments, and more.

This funding remains available through December 31, 2024. Local governments will receive funds in two phases – the first half 60 days after enactment, and the second half one year later.

From the beginning of the COVID-19 pandemic, MSA has been and continues to be prepared to provide PPE, training, and resources to help keep essential workers serving essential industries safe.