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
Last month, CSG provided a resource for states to understand the economic impacts of ending expanded federal unemployment benefits early. This resource is now updated to include estimates of how this policy choice will affect state revenues. Some states tax unemployment benefits, and in those states, ending the programs early will mean forgoing tax revenue. This resource includes estimates of the overall economic impact as well.
ARP Presentation: CSG Midwest/Midwestern Legislative Conference
At the Midwestern Legislative Conference, CSG analysts presented a big picture overview of the American Rescue Plan. This resource breaks down funding for K-12, higher education, workforce development and more, providing examples of how states like Nevada, Wyoming and Connecticut are using ARP funds.
NEWS, UPDATES AND RESOURCES
Coronavirus State and Local Fiscal Recovery Funds
State and local funding oversight reports posted to PandemicOversight.gov
The Pandemic Response Accountability Committee has posted state and local government response oversight reports on the PandemicOversight.gov website. Reports include information on spending, contact tracing, vaccine distribution and more.
Infrastructure
Moody’s Analytics releases research on effects of bipartisan infrastructure package
This week, Moody’s released a research brief looking at the impacts of the possible bipartisan infrastructure package winding its way through Congress. Its estimates suggest that if the deal passes in roughly its current form, it will strengthen long-term economic growth and the benefits would mostly go to lower- and middle-income Americans. Moody’s does not find evidence that the plan will yield undesirably high inflation or overheat the economy. Read the full analysis by CLICKING HERE.
Treasury
The U.S. Department of the Treasury posts webinars on compliance and reporting for Coronavirus State and Local Fiscal Recovery Fund
The U.S. Department of the Treasury has posted a series of webinars on compliance and reporting to the Coronavirus State and Local Fiscal Recovery Fund. Requirements for reporting vary based on population. States are encouraged to review the attached material for each population.
Updated frequently asked questions regarding Coronavirus State and Local Fiscal Recovery Fund
The U.S. Department of the Treasury has updated frequently asked questions regarding Coronavirus State and Local Fiscal Recovery Funds. Newly added questions are indicated on the first page.
The U.S. Department of the Treasury posts guidance on Emergency Rental Assistance
The U.S. Department of the Treasury has posted an updated addendum on guidance for Emergency Rental Assistance reporting. This addendum includes guidance on quarterly reporting for state and tribal governments.
National Association of Counties (NACO) submits statements on Treasury Interim Rule for Fiscal Recovery Fund
The National Association of Counties has submitted comments on the U.S. Treasury’s Interim Final Rule for the Coronavirus State and Local Fiscal Recovery Fund established under the American Rescue Plan Act. Full comments and questions can be found here.
Education
U.S. Department of Education releases final requirements for HCY and EANS funds
The U.S. Department of Education has released the finalized requirements for the American Rescue Plan Homeless Children and Youth program and the Emergency Assistance to Non-Public Schools program. Requirements for each program took effect July 9 and July 13, respectively.
U.S. Department of Education approves state ESSER plans
The U.S. Department of Education has approved the first seven state plans for Elementary and Secondary Schools Emergency relief. Arkansas, the District of Columbia, Massachusetts, Rhode Island, South Dakota, Texas and Utah will all receive the remaining one-third of their funding because of this approval.
U.S. Education Secretary releases policy letter to educators
TheU.S. Department of Education Secretary penned a letter to state and local educators and administrators with guidance on reopening schools safely. The Education Secretary encourages schools to set up vaccination sites on school campuses and launch campaigns to encourages students to get vaccinated if they are above 12 years old.
U.S. Department of Education updates frequently asked questions for community schools
The U.S. Department of Education has updated the frequently asked questions regarding American Rescue Plan funding to expand full-service community schools. All strategies outlined can be implemented using ARP funding in all schools regardless of their status as community schools.
Health and Human Services
U.S. Department of Health and Human Services (HHS) extends COVID-19 public health state of emergency
The Secretary for Health and Human Services has extended the declaration of a public health emergency for an additional 90 days, effective July 20, 2021. The declaration may be extended for subsequent 90-day intervals following the expiration of the current state.
$144 million in ARP funding to community health center programs
The Health Resources and Services Administration has awarded $144 million in American Rescue Plan funds to 102 Health Center Program look-alikes to mitigate the spread of COVID-19 in underserved areas. These awards are intended to support communities that rely on Health Center Programs for access to critical care to vulnerable populations.
$398 million in ARP funding to small rural hospitals
The Health Resources and Services Administration has awarded $398 million in American Rescue Plan funds to small rural hospitals through the Small Rural Hospital Improvement Program. 1,540 hospitals will receive funds to improve the response to COVID-19 cases and vaccinations.
U.S. Department of Health and Human Services (HHS) hosts office hours for Low-Income Household Water Assistance Program development
The U.S. Health and Human Services Department, through the Office of Community Services, will be hosting seven office hours to support state, local and tribal governments as they develop plans for the Low-Income Household Water Assistance Program grants. Registration closes 48 hours prior to the session. Times can be found here.
Federal Emergency Management Agency (FEMA) updates COVID-19 funeral assistance funds
The Federal Emergency Management Agency has updated the state-by-state allocations of COVID-19 related funeral costs. The total amount of aid now totals over $606 million to over 91,000 people. Manual review of applications is ongoing.
Housing and Urban Development
Data on rental assistance shows gains, lingering issues
The U.S. Department of the Treasury released data showing a rapid increase in state and local usage of the Emergency Rental Assistance Program. Over 160,000 households received assistance in May, a 60% increase over April. However, there are still many more struggling renters who have not been reached. As the end of July and the moratorium on eviction looms, the U.S. Census Bureau estimates 1.2 million households face eviction in the next two months. Read our previous report on the housing assistance programs funded by the ARP by CLICKING HERE.
U.S. Department of Housing and Urban Development to host virtual conference on COVID funding
The U.S. Department of Housing and Urban Development will be hosting a virtual conference in partnership with Emergency Solutions Grants Coronavirus, Housing Opportunities for Persons With HIV/AIDS, Coronavirus, and Community Development Block Grant Coronavirus. Topics will include working with homeless populations, identifying national objectives and determining eligibility for grants.
Labor and Workforce
U.S. Department of Labor posts guidance on state responsibilities after CARES Act benefits end
The U.S. Department of Labor has posted guidance on state operational requirements after CARES Act unemployment benefits end. Operational requirements apply after the federal deadline of Sept. 6, or before should states choose to terminate benefits early.
U.S. Economic Development Administration announces Coal Communities Commitment
This commitment allocates $300 million to support coal communities as they recover from the pandemic. This funding will support “activities and programs that support economic diversification, job creation, capital investment, workforce development and re-employment opportunities.” To learn more, or to apply for support, CLICK HERE.
Agriculture
U.S. Department of Agriculture invests $307 million in water infrastructure
The U.S. Department of Agriculture announced it will be investing $307 million to modernize rural water systems in 34 states and Puerto Rico. This announcement was made in collaboration with the Biden administration’s Bipartisan Infrastructure Framework that is set to roll out later this year.
Environment
Environmental Protection Agency (EPA) announces $50 million in ARP funding for air quality work
The Environmental Protection Agency announced it will make $50 million in funding from the American Rescue Plan available to improve air quality in communities across the country. Funding will be made available through a grant competition that will evaluate proposals from states and tribal governments.
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.
- Arizona has reserved $100 million in American Rescue Plan funding for tourism recovery. Money will be distributed through the Visit Arizona Partnership and the Arizona Department of Tourism.
- Maine Gov. Janet Mills signed a bill authorizing the spending of more than $1 billion in American Rescue Plan funds. The full spending bill will go into effect 90 days after the legislative session adjourns.
- The Michigan Senateapproved a spending bill that authorizes the use of $1.6 billion in American Rescue Plan funding to improve state bridges and rail crossings. This includes funding for a statewide program for the rehabilitation or replacement of bridges owned by local road agencies and $195 million to county road commissions, cities and villages for revenue lost due the pandemic.
- South Carolina State University will use $4 million from the Coronavirus Aid, Relief, and Economic Security Act and $5.8 million from the American Rescue Plan Act to erase $9.8 million in student debt.