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Weekly Update: June 21 – News and Resources for State Leaders

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

Expanded Unemployment Benefits

Half of the states plan to end expanded federal unemployment benefits before the national expiration date of Sept. 6, 2021. This resource examines the economic impact of that decision. A follow up resource in the coming weeks will expand the analysis to include revenue impacts.


NEWS, UPDATES AND RESOURCES

The Coronavirus State and Local Fiscal Recovery Fund

Treasury releases compliance and reporting guidance for fiscal recovery fund

On June 17, the U.S. Department of the Treasury released a Compliance and Reporting Guidance document that provides additional clarification to states on required compliance and reporting responsibilities for the Coronavirus State and Local Fiscal Recovery Fund.

The U.S. Department of the Treasury releases new guidance on eligible uses of the fiscal recovery fund 

On June 17, the Treasury released an updated Frequently Asked Questions document that provides additional guidance on eligible uses of Coronavirus State and Local Fiscal Recovery Fund allocations for broadband infrastructure investments. 

Treasury posts state payments to Non-Entitlement Units update

The U.S. Department of the Treasury has posted an updated overview of payments to states for distribution to Non-Entitlement Units of Local Government. This list will be updated weekly.   

Education

U.S. Department of Education released FAQs and guidance on ARP equity

The U.S. Department of Education has released Frequently Asked Questions and additional resources for advancing equity in American Rescue Plan funds distribution, specifically within Elementary and Secondary School Emergency Relief programs. Maintenance of equity requirements ensure schools that serve historically underserved populations receive an equitable share of state funds. 

Department of Education posts state ESSER plans 

The U.S. Department of Education has posted state plans to utilize Elementary and Secondary School Emergency Relief funds to support the safe reopening of schools. States currently have access to $81 billion. The remaining $41 billion will become available upon approval of state plans.

Health and Human Services

The U.S. Department of Health and Human Services awards $125 million in vaccination grants

On Monday, the U.S. Department of Health and Human Services awarded $125 million in grants to 14 public and private non-profit organizations to support underserved communities through community-based vaccine efforts. These funds will address transportation needs and appointment scheduling assistance. 

The U.S. Department of Health and Human Services gives $424.7 million to rural health clinics

The U.S. Department of Health and Human Services released $424.7 million in funding to rural health clinics to support COVID-19 testing and mitigation efforts. Funding is distributed based on the number of clinics operated, providing an initial $100,000 per clinic site. Additional funding is to be released later this summer. 

The U.S. Department of Health and Human Services sets up COVID-19 hotline for people with disabilities       

The Disability Information and Access Line hotline is now available to assist people with disabilities looking for COVID-19 vaccinations and resources. Trained staff are prepared to assist with finding vaccine locations, making vaccination appointments and accessing transportation. 

Children and Families

The Administration for Children and Families provides guidance on Child Care and Development Fund

The Administration for Children and Families (within the U.S. Department of Health and Human Services) has released guidance on Child Care and Development Fund discretionary funding. This guidance outlines ways to leverage funding to aid underserved populations. 

The Administration for Children and Families releases state fact sheets for American Rescue Plan funding

The Administration for Children and Families released state-by-state fact sheets outlining available American Rescue Plan funding to support families, children and child care providers.

Refundable child tax credits to be distributed July 15

The U.S. Department of the Treasury and the Internal Revenue Service announced they will begin distributing refundable child tax credits to 88% of families in the U.S. starting July 15. Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above. Payments will be made on the 15th of each month. 

U.S. Department of Agriculture officially withdraws proposed rule limiting SNAP benefits

The U.S. Department of Agriculture (USDA) announced June 9 they would be withdrawing a proposed rule to eliminate the option for Broad Based Categorical Eligibility (BBCE), which allows states to determine Supplemental Nutrition Assistance Program eligibility based on participation in Temporary Assistance for Needy Families programs. USDA added that eliminating BBCE would create new financial requirements for states with no new federal resources.  

Housing

The U.S. Department of Housing and Urban Development awards $1.1 billion in emergency housing vouchers 

The U.S. Department of Housing and Urban Development (HUD) announced the distribution of phase one of American Rescue Plan funds for emergency housing vouchers. HUD has awarded 70,000 vouchers to 626 public housing authorities who have implemented the Housing Choice Voucher Program. A full list of awards can be found here

The U.S. Department of Housing and Urban Development implements eviction protection grant program 

The U.S. Department of Housing and Urban Development plans to implement a competitive grant program for eviction support. This $20 million program will award grant funding to nonprofit organizations and government agencies to support legal assistance and related services for tenants at risk of eviction.

The U.S. Department of Housing and Urban Development posts Community Development Block Grant quick guide 

The U.S. Department of Housing and Urban Development has posted a quick guide for the use of American Rescue Plan Community Development Block Grants to fund public facilities and infrastructure. These grants can be used to fill in gaps in other funding to address pressing infrastructure needs. 

The Congressional Research Service updates Emergency Rental Assistance reporting 

The Congressional Research Service has released an updated report on Emergency Rental Assistance (ERA) provided through American Rescue Plan funding. The ERA program includes $25 billion in funding to be released to the states to support rental assistance programs created through the Coronavirus Aid, Relief, and Economic Security Act.

Transportation & Infrastructure

The U.S. Department of Transportation announces $250 million in Capital Investment Grants

The U.S. Department of Transportation announced $250 million in Capital Investment Grants Small Starts projects. A full table of allocations can be found here

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.

  • The Alabama Department of Public Health has been awarded $40 million in federal funding to support rural and minority community COVID-19 response. This funding will be used to increase COVID-19 contact tracing and improve testing for underserved populations across the state. 
  • Arkansas lawmakers are in ongoing talks on how to spend the state’s $178.5 million share of the federal Child Care Development Fund Flexible Funding. The Office of the Governor has encouraged legislators to look into supplementing provider payment rates to ensure the childcare workforce remains skilled and competitive, allowing families to return to work with reliable childcare options. 
  • The Hawaii Department of Health has been awarded $24.5 million in federal funding to address the needs of underserved populations. Lawmakers say they plan to use the funds to target the needs of Native Hawaiians, Filipinos and Pacific Islanders who all report higher COVID-19 infection rates but are less likely to get vaccinated. 
  • The Michigan Senate approved $4.3 billion in federal funding for school districts to address learning loss and improve resources for students and teachers. The House of Representatives approved $2.2 billion bill to support food and rental assistance programs. 
  • The New Hampshire Department of Health and Human Services will use $24.5 million in federal stimulus money to address health disparities that have been exposed by the COVID-19 pandemic, paying specific attention to community health workers. 
  • New Jersey policymakers plan to use more than $600 million in federal aid to address the educational needs of students with disabilities. The funding will be used to allow for an additional year of instruction for students set to “age out” of their school district. 
  • South Carolina Gov. Henry McMaster called for “transformative investment” as the state begins discussion on the appropriation of $2.5 billion in federal funding. McMaster called on legislators to provide funding for infrastructure improvement. 
  • As states begin to distribute ARP funding to local governments, counties across the country are utilizing allocations to offset losses and stimulate local businesses. Indian River County, Florida, has allocated $275,000 to the Indian River Chamber of Commerce to support a repeat business program. Ingham County, Michigan, will use a portion of their $11 million small business grants to offset revenue lost from hotel taxes. Centre County, Pennsylvania, has allocated $49,000 in American Rescue Plan funding to the Happy Valley Adventure Bureau to support tourism and fund local nonprofits.