This week, CSG looks at the American Rescue Plan through the lens of Nutrition and Information Technology and includes updated news and resources including education funding guidance, newly available grant opportunities and updates to the state challenges to the tax cut offset provision.
Education funding guidance and news
The ARP includes $122.8 billion in funding for the Elementary and Secondary School Emergency Relief (ESSER). States received two-thirds ($81 billion) of this funding last month. The final one-third ($41 billion) will be released after states’ plans are approved by the U.S. Department of Education. States must submit their ESSER plans by June 7, 2021. To learn more, CLICK HERE. To view U.S. Department of Education resources on ESSER, please CLICK HERE.
Tribal governments begin receiving ARP education funding
The ARP provides $850 million in funding for tribal K-12, colleges and universities. The Bureau of Indian Education (BIE) began dispersing these funds in April. To learn more, CLICK HERE.
Support for students experiencing homelessness
The ARP included $800 million in education funding meant to provide support for students experiencing homelessness. To view a breakdown of this funding allocation by state or to learn more, CLICK HERE.
Government Finance Officers Association releases ARP guiding principles
The Government Finance Officers Association released its guiding principles for state leaders to keep in mind as they navigate use of ARP funding. Among the principles suggested:
- Avoiding creating new programs or expenses that require ongoing commitments
- Using funds to cover operating deficits incurred during the pandemic
- Investing in infrastructure
To see the full report, please CLICK HERE.
Shuttered Venue Operators Grant (SVOG) applications open
The SVOG applications page is now open. This grant provides relief to small venues (e.g., theatrical producers, museum operators, etc.) that were shut down due to the pandemic. To learn more or to apply for a grant, CLICK HERE.
Congressional Research Service (CRS) report on State Small Business Capital Initiative (SSBCI)
The CRS released a report on the SSBCI which contains useful information for state leaders, including an overview of the program, a review of the previous iteration from 2010-2017 and a breakdown of projected allotments by state. To learn more, CLICK HERE.
National Association of State Budget Officers (NASBO) releases FY 2022 budget report
On April 30, NASBO released a report analyzing governors’ budget proposals for Fiscal Year 2022. States continue to focus on responding to the pandemic, while also focusing on K-12 education and health care. Read the full report, including analysis of each state’s budget, by CLICKING HERE.
State challenges to tax cut offset provision
CSG previously provided a primer on state challenges to the ARP’s tax cut offset provision, which you can read here. The U.S. Department of Justice (DOJ) filed an opposition to Ohio’s challenge on April 16. To read the DOJ filing, CLICK HERE. CSG will continue to monitor these challenges and provide updates.
ENACTED STATE BUDGETS
As state policymakers weigh options on how to maximize the relief from the American Rescue Plan Act of 2021, officials in a few states have begun to appropriate the stimulus funds to increase the economic recovery effort.
- Kansas Gov. Laura Kelly signed the new budget for 2021-22 on April 26. Kansas state legislators moved to delay appropriating ARP funding till May, awaiting further guidance on education funds in particular. CSG will continue to monitor the state for additional actions appropriating ARP funds.
- Nebraska Gov.Pete Ricketts signed the 2021-23 budget on April 26. The budget included more than $1 billion dollars in education funding for the state’s schools. While CARES Act funding was used for education purposes, the state is waiting for more guidance before appropriating ARP funds. More details can be found here. CSG will continue to monitor the state for additional actions appropriating ARP funds.
Do you have a question about state economic recovery? CSG is here to help.
CSG Research and Policy Analysts are eager to answer your questions on the American Rescue Plan, the proposed American Jobs Plan, the proposed American Families Plan, or other federal and state economic recovery efforts. Send us an email with your question to [email protected].