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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, The Council of State Governments provides resources on how states can utilize American Rescue Plan Act funds to support rural communities and for election security/civics education. This special edition of The Current State weekly e-newsletter also includes news, updates and resources related to states ending expanded unemployment benefits, infrastructure efforts and the Emergency Connectivity Fund.
NEW THIS WEEK
Civic engagement and voting are both crucial to functioning democracy. The American Rescue Plan includes funding for election cybersecurity — which is especially critical in the wake of major ransomware attacks on U.S. infrastructure — and funds states can use for civic education efforts.
Rural communities have faced unique challenges as a result of the COVID-19 pandemic. The American Rescue Plan includes $2.17 billion in funding explicitly for rural communities. States also can use discretionary funds to address some of these impacts.
NEWS, UPDATES AND RESOURCES
States cut unemployment benefits early
At least 24 states plan to opt out of the expanded federal unemployment programs, affecting an estimated 3.6 million people. Of those affected, 2.7 million are at risk of losing their benefits entirely, while others may see their benefits revert to pre-pandemic levels, sometimes falling below poverty-level wages. Programs affected include the $300 per week federal supplement, benefits for gig economy workers and additional assistance for people facing long-term unemployment. Supplemental benefits are set to expire nationwide Sept. 6, but some residents may lose benefits as early as June 12.
Economic Impact Payments
The U.S. Department of the Treasury, Internal Revenue Service and Bureau of the Fiscal Service announced they have successfully distributed more than 1.8 million additional Economic Impact Payments under the ARP, allocating $391 billion to people who need it most.
FFIS Allocation Updates
The Federal Funds Information for States (FFIS) updated its funding allocations for multiple federal programs created or expanded in the ARP. These allocations can be found at the FFIS COVID-19 webpage by clicking this link.
Funeral assistance
According to the Federal Emergency Management Agency’s (FEMA) new funeral assistance frequently asked questions website, families and individuals who incur funeral expenses in 2021 due to COVID-19 have the ability to apply for funeral assistance made possible in the ARP. An exact funding cap has not been established.
Distribution of non-entitlement funds
The Treasury released new guidance on allocations to local governments that did not receive a direct payment under the American Rescue Plan. Detailed allocation information, FAQs for non-entitlement units of local government, and information for states can be found on the Treasury’s website, here.
Treasury websites for ERAP
The Treasury posted websites for grantees’ Emergency Rental Assistance Programs (ERAP) with search functions intended to help tenants and landlords find rental assistance programs in their area. The Treasury also announced it has so far distributed over $6 billion of the $21.6 billion in assistance funds available in the ARP.
SBA pilot program
The Small Business Administration (SBA) launched a $100 million Community Navigator Pilot Program, a competitive grant program intended to utilize a community navigator approach to aid small businesses in underserved communities. Applications are being accepted through July 12, 2021, with award decisions by August 2021.
American Indian Resilience in Education
The U.S. Department of Education unveiled a new website dedicated to the American Rescue Plan – American Indian Resilience in Education (ARP-AIRE) program. The ARP-AIRE will allocate $20 million in one-time grants available to support tribal education agencies. Application and award information can be found on the website, here.
Updated basics for the Emergency Connectivity Fund
The Federal Communications Commission (FCC) updated its webpage dedicated to explaining the Emergency Connectivity Fund, a $7.17 billion program designed to close the homework gap by providing relief to students, schools and libraries that lack access to a stable Internet connection or the technology needed to access it.
Broadband Infrastructure Program
The U.S. Department of Commerce published the National Telecommunications and Information Administration’s Broadband Infrastructure Program Notice of Funding Opportunity. The $288 million program was created to fund public-private partnerships to improve broadband infrastructure.
Highway infrastructure bill
The U.S. Senate Committee on Environment and Public Works released an infrastructure bill providing $304 billion over five years to projects improving highways, roads and bridges. The funds also may be used for programs reducing carbon emissions and increasing infrastructure resilience. A markup of the bill is expected soon, but state apportionments can be seen here.
COVID-19 testing for uninsured populations
The U.S. Department of Health and Human Services (HHS) announced $4.8 billion in ARP funding to the Health Resources and Services Administration (HRSA) COVID-19 Uninsured Program. The funds will help 29 million uninsured individuals receive COVID-19 testing through reimbursements to health care providers. Updated reimbursement data can be found on the Centers for Disease Control and Prevention (CDC) website, here.
CDC COVID-19 funding tracker
The CDC released a new website for tracking COVID-19 funding, including, but not limited to, ARP funds. The website allows searches for CDC awards to state and local governments, tribes and territories.
ARP funding awarded to support domestic violence survivors
HHS announced $200 million in ARP funding will go to Family Violence Prevention and Services Act (FVPSA) Program grantees to support domestic violence survivors and their children. The funding will provide 296 supplemental grant awards with flexibility to allow funding for programs supplying shelter, counseling, telehealth and other services to survivors. Data on state allocations can be found here.
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State Utilization of Federal Funds
As state policymakers weigh options on how to maximize the relief from the ARP, state officials have begun to appropriate the stimulus funds.
- Idaho passed House Concurrent Resolution 19 earlier this month, which creates a legislative interim committee to study and make recommendations on ARP spending “for any purpose other than water infrastructure, broadband infrastructure, and sewer infrastructure.” Committee members consist of members from both the House and Senate and may receive “input, advice, and assistance” from non-legislative sources.