To view this week’s newsletter, CLICK HERE.
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
The pandemic has caused widespread negative economic impacts, leading states to consider innovative new programs to aid the economic recovery. One option states could consider is a basic income (i.e. unconditional money transfers to some or all residents). While the idea is fairly old, these programs have only recently been implemented. Here is what is known about basic income initiatives and some examples of state and local programs.
NEWS, UPDATES AND RESOURCES
Biden Administration releases FY22 budget proposal
The Biden Administration released the proposed federal budget for the 2022 fiscal year, which incorporates previously announced legislative proposals (American Families Plan, American Jobs Plan) and addresses existing grant usage. Full text can be found here.
U.S. Department of Education releases guidance for COVID relief funds
The U.S. Department of Education released a report outlining uses and available resources for multiple COVID relief efforts, including American Rescue Plan funds. The report specifically addresses how funds can be used to reopen schools safely, address educational equity and support educators and school staff. The department also highlights new Elementary and Secondary Education Relief Fund and Governor’s Emergency Education Relief Fund provisions outlined in the ARP.
The U.S. Department of Education updates Education Stabilization Fund Transparency Portal with Maintenance of Effort waiver requests
As an extension of the Covid-Relief-Data.ed.gov site released in November 2020, the U.S. Department of Education has updated the Education Stabilization Fund Transparency Portal to include Maintenance of Effort (MOE) waivers and annual performance reports. MOE waiver requests from Florida and Oklahoma have been posted.
U.S. Department of Education posts guidance for American Rescue Plan funds for Education for Homeless Children and Youth
The U.S. Department of Education posted a page addressing Frequently Asked Questions for American Rescue Plan Homeless I funds that were allocated to state educational agencies (SEAs) April 26. Because Homeless I funds were released as a supplement to Education for Homeless Children and Youth funds, all provisions of funds apply to Homeless I funds. The department plans to update this page as more questions are received.
Centers for Disease Control and Prevention releases guidance on American Rescue Plan supplemental funding for public health workforce
The Centers for Disease Control and Prevention is awarding $2 billion to approved but unfunded jurisdictions through the Crisis Response Workforce Development Program. This new report provides an outline of terms, conditions and goals, as well as amounts awarded to each jurisdiction.
Administration for Children and Families posts additional resources for child care stabilization grants
The Administration for Children and Families posted additional resource guidance for child care stabilization grants that are intended for financial relief for child care providers. These funds offset unexpected business expenses such as personnel costs, personal protective equipment, rent and mortgage payments, and facility management.
Association for Community Living releases application for adult protective services grants
The Association for Community Living announced the availability of grant funding for the enhancement and expansion of adult protective services, provided through the American Rescue Plan. Funds can be used to enhance statewide programs or focus on local-level elder justice initiatives. The deadline to submit a letter of assurance is June 28, 2021, at 11:59 p.m.
Federal Communications Commission finalizes Emergency Connectivity Fund program
As the pandemic recedes, schools and libraries continue to rely on remote learning opportunities and virtual services. To accommodate the more than 15 million public school students who did not have access to home internet resources, the Federal Communications Commission announced a $7.171 billion Emergency Connectivity Fund. Eligible schools and libraries may use these funds to purchase enhanced telecommunication equipment such as routers, hot spots and connected devices to better serve their communities. Full text is available here.
U.S. Department of Labor offers guidance on Short Term Compensation unemployment benefits for reopening
The U.S. Department of Labor has provided further guidance and clarification on the flexibilities of short-term compensation to aid businesses in returning to full work capacity. The department provides example scenarios of how owners can reopen their businesses while allowing employees to utilize Short Term Compensation grants. This is designed to alleviate a portion of the financial burden from the owner and prevent layoffs and reduced wages as business operations return to normal.
U.S. Department of the Treasury updates guidance for non-entitlement recovery funds
The U.S. Department of the Treasury released an updated document addressing Frequently Asked Questions for the State and Local Fiscal Recovery Fund. New questions and answers are denoted on the first page of the document and address back to work incentives, computing revenue loss and updated eligible uses. The full document can be found here.
U.S. Senate Committee advances highway infrastructure bill
The U.S. Senate Committee on Environment and Public Works passed a portion of the surface transportation reauthorization bill that provides funding for highways, roads and bridges. This bill, which would provide $304 billion over five years, is aimed at reducing carbon emissions and enhancing transportation infrastructure across the country. A section-by-section summary can be found here.
Administration for Children and Families posts outline of state allocation funds
The Administration for Children and Families posted a table outlining the mandatory, matched and discretionary allocations to states from the Child Care and Development Fund. This table lists the allocation of funds state-by-state.
States push back on funding redirection
As the U.S. Department of the Treasury begins to distribute $350 billion to states through COVID relief programs, some states with large budget surpluses are being pressured to redirect funding to other projects. Louisville, Kentucky Mayor Greg Fischer, who serves as president of the U.S. Conference of Mayors, argues that all funds provided are necessary to ensure the full recovery of communities hit hardest by the pandemic. Others argue that excess funds could be better allocated to special projects that are unrelated to the pandemic.
STATE UTILIZATION OF FEDERAL FUNDS
As state policymakers weigh options on how to maximize relief from the American Rescue Plan (ARP), state officials have begun to appropriate the stimulus funds.
- Alaska lawmakers continue to debate the allocation of federal recovery funds into June as Gov. Mike Dunleavy calls a special session. The agenda for the current special session includes constitutional amendments for consideration along with continuing budget talks. A second special session is set for August.
- On Wednesday, Florida Gov. Ron DeSantis signed a $101 billion budget, which includes $10.2 billion in federal pandemic relief funding. Most federal funding has been directed to increasing salaries for teachers, police officers and first responders. Federal funds allowed the prevention of cuts to education and public health.
- A Kentucky infrastructure development program created with federal relief funding is now accepting applications. The $250 million program will create an estimated 4,000 jobs, with the first $150 million being divided across all 120 counties based on population. An additional $50 million will be available to rural underserved areas with outstanding need.
- Maryland is set to end three pandemic unemployment benefit programs, including the $300-a-week federal boost, on July 3. Gov. Larry Hogan cites rising vaccine and job availability for the end of pandemic benefits, calling on businesses to hire more people as the state continues to reopen.
- Mississippi released information regarding the allocation of nearly $300 million in Coronavirus Aid, Relief, and Economic Security Act small business relief funds. Half of the earmarked funds have gone unspent, as small business owners struggle with red tape restrictions. The rest was redirected to other relief efforts such as low-income housing assistance and unemployment insurance funds.
- Last Wednesday, the North Carolina House of Representatives unanimously approved the use of $750 million of federal COVID relief funding for high-speed internet instillation in rural areas. This legislation will earmark $350 million in discretionary ARP funds for the expansion of broadband access across the state.