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
Register Today! CSG Capitol Ideas Presents: How States are Spending Federal Rescue Dollars
Wednesday, Aug. 11, 3-4:30 p.m. ET
Join The Council of State Governments for a conversation about the funding available to states through the Coronavirus State Fiscal Recovery Fund and opportunities to leverage these funds for immediate state economic and fiscal recovery needs and long-term investments in state infrastructure and services. This is an opportunity for state leaders to discuss and learn from each other about the processes they are using to make allocation decisions and how they are utilizing these funds for state recovery.
NEWS, UPDATES AND RESOURCES
U.S. Senate votes to take up infrastructure bill
The U.S. Senate voted to take up a bipartisan infrastructure bill, which would provide $550 million in new spending for roads, bridges, rail lines, broadband and water systems. The Senate is yet to release official legislative text for the full bill. CSG analysts will continue to track updates and provide a full analysis once details are finalized.
Biden Administration encourages local governments to offer $100 vaccine incentive
The Biden Administration is calling on state, territorial and local governments to provide $100 to all newly vaccinated individuals in a push to encourage individuals to get the vaccine. This funding can be provided through the American Rescue Plan (ARP) Act. The U.S. Department of the Treasury can provide technical support to governments with questions on allocation and distribution.
The Biden Administration launches the Build Back Better campaign
The Biden administration has launched the Build Back Better campaign, which aims to bolster educational and workforce opportunities by providing free two-year community college, increasing the maximum Pell Grant by $1,500 and creating two million new apprenticeship slots for tradespeople.
The U.S. Consumer Financial Protection Bureau (CFPB) releases renter’s assistance finder tool
The CFPB has released an online finder tool to help landlords and renters identify federal assistance. With this tool, users can quickly find and apply for assistance for rent, utilities and other leasing expenses. All fifty states and hundreds of tribal and local governments are providing funds to eligible applicants.
ECONOMIC DEVELOPMENT
U.S. Economic Development Administration (EDA) posts ARP funding notice
The ARP provided the EDA with $3 billion in federal funding which will be split among six funding opportunities listed below. An additional $300 million is being allocated to the Coal Communities Commitment program.
· Build Back Better Regional Challenge
· Economic Adjustment Assistance
· Economic Adjustment Assistance
· Statewide Planning, Research, and Networks
· Travel, Tourism, and Outdoor Recreation
TREASURY
U.S. Department of the Treasury updates payouts to states
The Treasury has updated the status of ARP payments made to non-entitlement units of local governments. The last update on payments was made July 26.
Treasury releases first payments of child tax credits
The Treasury released nearly $15 billion to families through the recently expanded Child Tax Credit from the ARP. The credit included up to $3,600 per year for each child under six, and up to $3,000 for children ages 6-17.
EDUCATION
U.S. Department of Education continues to approve state plans
The U.S. Department of Education continues to approve and post state plans for ARP spending. Approved plans can be found here.
U.S. Department of Education taking applications for American Indian Education webinar
U.S. Department of Education posted an application for the American Rescue Plan American Indian Resilience in Education program. A preapplication webinar will be offered on Aug. 5, with applications due by Sept. 13.
U.S. Department of Education releases fraud reporting requirements for pandemic programs
The U.S. Department of Education released fraud reporting requirements for pandemic relief funds and auditors of those receiving federal funds. These requirements were developed after the Office of Inspector General conducted outreach with stakeholders to identify fraud indicators and best practices.
HEALTH AND HUMAN SERVICES
U.S. Department of Health and Human Services (HHS) announces $1.6 billion in ARP funding for testing/mitigation
HHS announced $1.6 billion in ARP spending to support COVID-19 testing and mitigation in vulnerable communities. The release summarizes funding by program and agency. Award details are pending.
The Center for Disease Control and Prevention (CDC) releases $780 million for COVID-19 prevention
The CDC has posted awards for $80 million for COVID-19 detection, testing and mitigation in homeless populations. They also have awarded $700 million for detection and mitigation in confinement facilities. Further guidance can be found here.
The U.S. Health Resources and Services Administration expands community-based funding
The U.S. Health Resources and Services Administration has awarded $8 million to support training for teaching health center support staff and create new community-based primary care residency programs in rural and underserved areas. This expansion also supports increasing the number of full-time equivalent resident positions at existing and new teaching health centers.
The U.S. Administration for Children and Families posts ARP funding matrix
The U.S. Administration for Children and Families has posted a funding matrix of ARP funding by organization and agency. The matrix also includes details on funding level, type and application deadlines.
The U.S. Administration for Children and Families releases guidance on Low-Income Water Assistance Program
The Administration for Children and Families has released guidance on funds for the Low-Income Water Assistance Program. Documents released include frequently asked questions, policy resources and vendor agreement resources.
The U.S. Administration for Community Living updates frequently asked questions on Older Americans Act funding
The U.S. Administration for Community Livinghas updated their frequently asked questions to address the use of funding for incentives for recipients getting the COVID-19 vaccine, including gift cards, vouchers, giveaways and prize items. ARP Title III-B funding may be used to fund non-cash incentives to encourage individuals to receive the vaccine.
HOUSING AND URBAN DEVELOPMENT
The U.S. Department of Housing and Urban Development (HUD) posts new quick guides for Coronavirus Aid, Relief, and Economic Security (CARES) Act
HUD has posted new quick guides for CARES Act funding, including information on managing community development block grants and emergency solution grants.
HUD posts Fair Housing Initiative Notice of Funding Opportunity
The Department of Housing and Urban Development has posted a notice of funding opportunity for the Fair Housing Initiative. The Fair Housing Initiative will provide $20 million in ARP funding to fair housing enforcement organizations.
HUD posts guidance on ARP funding adjustments for Section 8 vouchers
The Department of Housing and Urban Development has posted guidance and further information on funding adjustments for Section 8 vouchers. Guidance provides information on eligibility and allocation methods for the anticipated $200 million funding. The ARP has provided funding for public housing agencies that may be experiencing financial hardship.
COMMUNICATIONS
House passes State and Local Cybersecurity Improvement Act
The House has passed the State and Local Cybersecurity Improvement Act, which would authorize $500 million annually for fiscal years 2022 through 2026 for the State and Local Cybersecurity Grant Program. This program is designed to address threats and risks to information systems in state and local governments across the country.
Federal Communications Commission (FCC) hosting webinar on Emergency Connectivity Fund
The FCC is set to hold a webinar on frequently asked questions regarding the Emergency Connectivity Fund. The webinar is scheduled for Aug. 3 at 2:00 p.m. No registration is required.
FCC provides more information on Emergency Connectivity Fund
The FCC has set service delivery dates for the Emergency Connectivity Fund application filing window. The new information allows funding to be used for equipment that has not yet been ordered for the upcoming school year. This information applies to non-recurring service funding requests.
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 lost an appeal to use American Rescue Plan funding to provide tax cuts. A Federal District Court judge ruled the state has no legal authority to challenge provisions in the ARP language that would allow funding to offset tax cuts.
· Georgia joined states whose plans have been approved by the Department of Education and will be receiving a final $1.4 billion installment. Of the total $4.2 billion package earmarked for Georgia, $3.8 billion will go directly to school districts across the state. The other $425 million will be used to address statewide needs.
· Illinois is set to invest $200 million in early childhood education to extend services for special needs students.
· Michigan Gov. Gretchen Whitmer has announced a proposed investment of $100 million to support state and local efforts for thousands of affordable housing units and repairs for aging houses. The funding, which is expected to create 2,000 rental units, will go into the Michigan Housing and Community Development Fund for projects across the state.
· South Carolina will spend $15 million of federal relief aid to expand opportunities for preschool students by financing the state’s First Step program. South Carolina hopes to put more preschoolers on a path to success through parenting classes, pre-kindergarten home visits, after-school programs and health care initiatives.