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
Treasury
U.S. Treasury disbursed $13.1 billion to Tribal governments
The U.S. Department of the Treasury announced it has disbursed more than $13.1 billion to tribal governments through State and Local Fiscal Recovery Funds. Methodology for disbursement can be found here.
U.S. Treasury and IRS release state data on economic impact payments
The Treasury and the Internal Revenue Service has released state-by-state data on the third round of economic impact payments through the ARPA. The total payout totals nearly $390 billion with all states receiving more benefits through this round of payments than previous rounds.
The Treasury updates guidance for non-entitlement government agencies
New guidance from the Treasury provides updates on the interpretation of the 75% budget cap for non-entitlement government agencies. The Treasury defines the “most recent budget” as an NEU’s total annual budget, including both operating and capital expenditure budgets, in effect as of Jan. 27, 2020.
U.S. Treasury releases guidance material for Emergency Rental Assistance
The U.S. Department of the Treasury has released a set of materials offering further guidance on the use and disbursement of Emergency Rental Assistance funds. This includes a dedicated webpage, updated reporting guidelines and a full interim report with key findings explained.
Infrastructure
White House releases state fact sheet on infrastructure needs
The White House has released a state-by-state fact sheet detailing the needs that would be prioritized under the upcoming infrastructure framework. State fact sheets provide details on potential job creation and targeted areas of need by state.
FCC releases regional data for emergency broadband benefits programs
The Federal Communications Commission has released preliminary regional data on enrollment in emergency broadband benefits programs. Since February, FCC has enrolled over 24,000 partners and 3 million individual households in the subsidy program granting improved broadband capabilities.
Education
Department of Education announces funding available for students experiencing homelessness
The U.S. Department of Education has announced that school districts may apply for addition funding from the American Rescue Plan Act’s Homeless Children and Youth (HCY) Fund. Of the $800 million allocated to the HCY fund, $200 million has been disbursed by the department, with the remaining amount to be disbursed after reviewing new state applications.
Department of Education releases funds to Individuals with Disabilities Education Act qualifiers
The U.S. Department of Education announced more than $3 billion in funding through the ARP to support infants, toddlers, children and youth with disabilities that are served under the Individuals with Disabilities Education Act. A fact sheet with further guidance can be found here.
Department of Education offers more fiscal waivers
The U.S. Department of Education is now offering fiscal waivers to state and local educational agencies that will allow for more flexibility for certain funding received under the Elementary and Secondary Education Act of 1965. Specific waivers and requirements can be found here.
Health and Human Services
CMS announces low-cost health insurance options for individuals receiving UI benefits
As part of the ARPA, the Centers for Medicare and Medicaid Services are once again offering low-cost health insurance coverage options for individuals receiving unemployment insurance benefits. Qualifying individuals should submit or update existing health insurance applications through HealthCare.gov to receive insurance coverage for the upcoming year.
National Institute of Health announces second round of testing initiative funding
The National Institute of Health has announced the second round of testing initiative funding to support the safe reopening of schools for the 2021-22 school year. New awards will provide $15 million over two years for projects in California, Arizona, Hawaii, Nebraska and Florida.
U.S. Department of Health and Human Services announces $1 billion for Head Start funding
The U.S. Department of Health and Human Services announced they will be distributing $1 billion in funding to Head Start programs nationwide through the Administration for Children and Families Office of Head Start. State allocation details are expected in the coming weeks.
Administration for Children and Families releases guidance on Child Tax Credits
The Administration for Children and Families through the Office of Community Services has released guidance for front-line workers on the impact of Child Tax Credits for families impacted by the COVID-19 pandemic. The goal of this information is to educate workers so that they might inform families who apply for welfare benefits or other human service programs through the Department of Health and Human Services.
Housing and Urban Development
Department of Housing and Urban Development releases additional guidance on housing vouchers
The U.S. Department of Housing and Urban Development has released additional guidance on emergency housing vouchers with specific emphasis on household data reporting for public housing agencies.
Labor
Department of Labor announces short-time compensation program grants
The U.S. Department of Labor announces CARES Act grants awarded to New York, Connecticut and Illinois. Awards are intended to bolster each state’s short-time compensation programs and support small businesses through economic recovery.
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.
- Maryland has extended federal unemployment benefits for 10 days after state courts granted a temporary restraining order and denied the governor’s appeal. Benefits have been extended through July 10.
- Alabama lawmakers continue to discuss prison renovation and construction using COVID-19 relief funds.
- In Florida,plans to give teachers a $1,000 bonus using COVID relief funds have hit a snag due to potential conflicts with federal guidelines. However, lawmakers are exploring other ways to directly compensate teachers using ARP funding.
- Louisiana Gov. John Bel Edwards announced allocation of ARP funds to local governments across the state. More than $315 million in federal funding will be distributed between the 290 municipalities and localities in Louisiana.
- In Massachusetts,Gov. Charlie Booker renewed a push to spend ARP funds on housing production and tourism efforts.
- Wisconsin’s Department of Revenue began distributing $203 million to small municipalities across the state to support COVID-19 economic recovery.
- Wyoming’s revenue loss could allow for increased flexibility in the use of ARP funding, as the U.S. Department of the Treasury announces states that lost revenue can enjoy “broad latitude” in use of federal aid.