The American Rescue Plan (ARP) Act of 2021, a $1.9 trillion economic relief package, was signed by President Joe Biden on March 11. Much of the funding included will have impacts on states, both in their budgets and in the specific policies they enact. The Council of State Governments (CSG) is providing our members with ongoing analyses of the various components of the ARP in this special edition series of The Current State e-newsletter, out each Monday.
This week, CSG provides resources on how states can utilize American Rescue Plan funds — beginning with apprenticeships and occupational licensure. This newsletter also includes updated news and resources including federal guidance released on the State and Local Coronavirus Fiscal Recovery Fund, allocations for emergency rental assistance, restaurant revitalization funds applications and more.
Apprenticeships
Many states use apprenticeship programs as a tool for workforce development. The American Rescue Plan funding can be used by states to provide support to these programs, and the proposed American Jobs Plan includes funding that would create roughly 1.5 million new apprenticeship slots. CLICK HERE
Occupational Licensure
The ARP allocates funding for workforce development, veteran retraining and expanding telehealth services. States can use this funding to reduce barriers to occupational licensure for health professionals and veterans, standardize and digitize licensure requirements and extend pandemic rules to permanently ease barriers to licensure. CLICK HERE
NEWS, UPDATES & RESOURCES
Federal guidance released on the State and Local Coronavirus Fiscal Recovery Fund
The U.S. Department of the Treasury released today (May 10) guidance on the State and Local Coronavirus Fiscal Recovery Fund enacted as part of The American Rescue Plan Act. This recovery fund provides approximately $350 billion in new federal fiscal assistance for states, territories, tribes, counties and municipalities along with an additional $10 billion for critical capital projects. This includes $219.8 billion in direct, flexible funding for states, territories and tribes. In addition to this new guidance, the Treasury opened the Treasury Submission Portal where eligible state, territorial, metropolitan city, county and tribal governments may now request their allocation of the Recovery Fund.
CSG will provide an in-depth analysis of this Treasury guidance in the coming days.
CLICK HERE to access the guidance on the State and Local Coronavirus Fiscal Recovery Fund
CLICK HERE to access the portal to request fiscal recovery funds
CLICK HERE to access the CSG analysis of the State and Local Coronavirus Fiscal Recovery Fund
Treasury announces additional $21.6 billion in Emergency Rental Assistance allocation
On May 7, the U.S. Department of the Treasury, in coordination with the White House American Rescue Plan Implementation Team and the U.S. Department of Housing and Urban Development, announced an additional allocation of $21.6 billion under the American Rescue Plan for Emergency Rental Assistance. The announcement included guidance to expedite resources and prevent evictions due to affordable housing challenges exacerbated by COVID-19. CLICK HERE to read more about this additional financial support and guidance in a Treasury fact sheet released along with the announcement.
Education Stabilization Fund tracking begins
The ARP allocates over $170 billion in new resources to the U.S. Department of Education to support ongoing state and institutional COVID-19 recovery efforts through the Education Stabilization Fund (ESF). The Department of Education is tracking these funds as they are used by states. To see states’ past use of ESF funds and monitor the ARP funding, please CLICK HERE.
Restaurant Revitalization Fund applications open
The Small Business Administration opened applications on May 3, 2021 for establishments eligible under the Restaurant Revitalization Fund, which was authorized under the American Rescue Plan Act. $28.6 billion in funds will be made available until exhausted.
Emergency Connectivity Fund
The Federal Communications Commission released a draft Report and Order which establishes policies and guidance for the Emergency Connectivity Fund Program. The program, authorized in the American Rescue Plan Act, appropriates $7.02 billion to reimburse schools and libraries for equipment and services provided to support online learning. The policies proposed in the report and order include:
· Rules for eligible equipment and services; service locations; eligible uses; and reasonable support amounts for funding
· Information on the processes for eligible schools and libraries to apply for and receive reimbursements
Low Income Home Energy Assistance Program
The U.S. Department of Health and Human Services’ Division of Energy Assistance is releasing $4.5 billion in supplemental funding, appropriated in the American Rescue Plan Act, for the Low Income Home Energy Assistance Program. Eligible states, territories and tribal governments may use the funds within the existing program guidelines, including heating, cooling, crisis, weatherization assistance, case management for the reduction of home energy burden and administrative costs.
COVID-19 Training and Support for Health Centers
The U.S. Department of Health and Human Services announced the award of $32 million in ARP Funding for Health Centers.
· Approximately $16 million will be awarded to 52 Primary Care Associations to support state-wide and regional COVID-19 training and technical assistance activities, including helping health centers ensure medically underserved individuals and communities receive access to high quality preventive and primary health care services.
· Approximately $5.5 million will be awarded to 21 National Training and Technical Assistance Partners to provide national training and technical assistance activities in their specific areas of expertise, including assisting health centers to provide services for migrant and seasonal agricultural workers, residents of public housing and individuals experiencing homelessness.
· Approximately $10.5 million will be awarded to 49 Health Center Controlled Networks to support and expand the use of health information technology and data in health centers to enhance the impact of their COVID-19 response efforts.
State Small Business Capital Initiative (SSBCI) Notice of Intent to Apply due today
States, territories and the District of Columbia are required to send a notice of intent to apply for SSBCI funds by May 10. The Treasury will publish preliminary allocation amounts for Tribal Governments on May 10. Tribal Governments’ notice of intent to apply are not due until June 11. Applications for all states, territories, the District of Columbia and Tribal Governments will be due on Dec. 11. Application materials are forthcoming. For more information, please CLICK HERE.
Amtrak begins receiving ARP funds
$1.69 billion of the funding support for Amtrak included in the ARP has been made available. Ridership declined during the pandemic creating a budget shortfall, leading to furloughs and reduced service levels. ARP funds will be used to recall furloughed employees and restore service levels starting in May. The Northeast Corridor will receive $970 million while the national network will receive about $727 million. To learn more, CLICK HERE.
STATE UTILIZATION OF FEDERAL FUNDS
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.
· Idaho enacted a concurrent resolution that authorizes a committee of state House and Senate members to review the use of ARP funds for federal programs. The committee will make recommendations for allocating funding from the ARP to the regular session of the legislature (for purposes not related to water, sewer and broadband infrastructure).
· Montana’s legislature passed a bill separate from the state budget appropriating ARP funding that has been signed by the governor. HB 632, signed on April 30, creates advisory commissions on infrastructure, communications, economic recovery, workforce development and health. It also establishes a grant process for economic recovery, water and workforce development, among other things. The bill appropriates about $2.3 billion of the $3 billion expected to go to Montana from the ARP. For a breakdown of funding from the original House version of the bill, CLICK HERE.
· In anticipation of federal economic recovery funds, Rhode Island Gov. Dan McKee created Rhode Island 2030, a series of virtual community conversations to develop a vision and strategy for the state’s recovery and future.
· Vermont House Bill 315 (enacted April 17) directs the Commissioner of Finance and Management to make expenditures in anticipation of American Rescue Plan funds. The bill provides a recourse for the Commissioner to advise the legislature should federal guidance deem any appropriations made by the bill as impermissible.
· The Wyoming legislature intends to convene in a special session during the spring or summer of 2021 to enact programs and expenditures resulting from the American Rescue Plan. Wyoming SF 0118 was enacted on April 21 in anticipation of the special session to directs the governor to appropriate American Rescue Plan funds in the event the legislature does not convene again in 2021.