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
U.S. Senate passes infrastructure package
The U.S. Senate has passed the bipartisan infrastructure package that has been in the works for months. According to the Congressional Budget Office, the bill as it stands is estimated to increase revenues by $50 billion and add $256 billion to the projected deficit from 2021-31. The legislation would provide $382.9 billion in contract authority for a variety of transportation initiatives from 2022-26. The Congressional Budget Office also estimates that outlays from obligation limitations equal to all of the available contract authority would total $362.7 billion over the 2021-31 period: $287.0 billion for Federal Highway Administration programs, $66.5 billion for Federal Transit Administration programs, $4.3 billion for Federal Motor Carrier Safety Administration programs and $4.9 billion for National Highway Traffic Safety Administration programs. CSG will continue to monitor this legislation and provide analysis as it develops.
State and Local Fiscal Recovery Funds reporting due August 31
Any state, territorial, metropolitan city, county, tribal governments and Non-Entitlement Units that received funding from the State and Local Fiscal Recovery Funds Programs are required to file an Interim Report and a Recovery Plan Performance Report by Aug. 31. The U.S. Department of the Treasury offers comprehensive assistance in reporting guidelines, including webinars and step-by-step outlines on how to gather information and submit reports. Questions and concerns can be emailed to [email protected].
CSG Justice Center American Rescue Plan (ARP) Guide
ARP funding can be used by states for long-term, system-wide improvements to the criminal justice system — including strategies to reduce justice involvement, connect people to community-based services and put people on a path to success. The CSG Justice Center is providing resources to state leaders to help them understand the potential for criminal justice improvements.
U.S. Department of the Treasury
U.S. Senate releases budget resolution
The U.S. Senate has released a concurrent resolution regarding budget recommendations for the upcoming fiscal year. The resolution specifically calls on the Budget Committee to make amendments to the budget that meet the goals of the Biden administration’s Build Back Better agenda. Budget talks are set to continue in the coming weeks.
The Treasury posts guidance on Homeowner’s Assistance Fund
The U.S. Department of the Treasury updated guidance for the Homeowner’s Assistance Fund. Updates include definitions, qualified expenses and plan submission requirements.
The Treasury’s Homeowner Assistance Fund portal is live
The Treasury’s Homeowner Assistance Fund online portal is up and running. Program participants should upload their plans or notify Treasury of the date by which they will submit them, by Aug. 20. Plans must be submitted through the online portal.
The Treasury releases statement on using relief funds for vaccine incentives
The U.S. Department of the Treasury released a statement on the use of State and Local Fiscal Recovery Funds for state vaccine incentives. Under the Interim Final Rule, states may use Coronavirus State and Local Fiscal Recovery Funds to respond to expenses related to vaccination programs. Incentive programs that could increase the number of vaccinated individuals are included in this rule so long as the costs are reasonably proportional to the expected public health benefit.
The Treasury, White House and other agencies promote Emergency Rental Assistance
The Treasury, joined by the White House and multiple national organizations, encourage states to promote the Emergency Rental Assistance Finder tool as the national eviction moratorium comes to an end Oct. 3.
The Treasury updates guidance on Emergency Rental Assistance
The U.S. Department of the Treasury has updated guidance on Emergency Rental Assistance (ERA) to include information on the eligibility of public housing and Housing Choice Voucher participants for ERA.
U.S. Department of the Treasury continues to update non-entitlement unit pay outs
The Treasury continues to update the payouts to state non-entitlement units of local governments from the American Rescue Plan Coronavirus Local Fiscal Recovery Fund. The most recent update was made Aug. 2.
Agriculture
U.S. Department of Agriculture extends eviction moratorium
The U.S. Department of Agriculture (USDA) has extended the eviction moratorium for homeowners of properties financed or guaranteed by the USDA through Sept. 30. Beyond this date, the department will make loss mitigation options available to homeowners experiencing loss.
Education
U.S. Department of Education releases “Return to School Roadmap”
The U.S. Department of Education has released a “Return to School Roadmap,” which provides guidance to parents, teachers, administrators and communities on how to safely return to school this fall. The roadmap includes actionable strategies from the Centers for Disease Control and Prevention.
U.S. Department of Education announces $3.2 billion in Higher Education Emergency Relief Fund grants
The U.S. Department of Education has announced $3.2 billion in Higher Education Emergency Relief Fund grants for students at over 1,800 historic or underserved institutions. Funding from the American Rescue Plan Act will provide $1.6 billion to Historically Black Colleges and Universities, $143 million to Tribally-Controlled Colleges and Universities and another $1.19 billion to Minority-Serving Institutions.
U.S. Department of Education releases $600 million for students experiencing homelessness
The U.S. Department of Education has released $600 million for students experiencing homelessness through the American Rescue Plan’s Homeless Children and Youth program. States may use up to 25% of funds for state-determined uses. The remaining 75% must be allocated to school districts through formula subgrants.
U.S. Department of Education continues to post approved state Elementary and Secondary School Emergency Relief plans
The U.S. Department of Education continues to update the list of approved state Elementary and Secondary School Emergency Relief plans. Plans are posted in the order they are received.
U.S. Office of Elementary and Secondary Education provides priorities and definitions for Education Innovation and Research
The Office of Elementary and Secondary Education under the U.S. Department of Education released priorities and definitions for the Education Innovation and Research program. This information is designed to be used in competitions in the upcoming fiscal year and beyond.
Environment
Environmental Protection Agency updates frequently asked questions on COVID-19 funding
The U.S. Environmental Protection Agency has updated the frequently asked questions on COVID-19 relief funding. A new memorandum allows federal awarding agencies to grant exceptions to recipients affected by the pandemic as deemed appropriate to the extent of the law.
Health and Human Services
Health Resources and Services Administration provides $121 million to support COVID vaccinations in underserved communities
The Health Resources and Services Administration under the U.S. Department of Health and Human Services has awarded $121 million to support community-based efforts to improve vaccination rates in underserved communities. A list of recipients can be found here.
Substance Abuse and Mental Health Services Administration awards $250 million to community behavioral health centers
The Substance Abuse and Mental Health Services Administration under the U.S. Department of Health and Human Services has awarded $250 million in American Rescue Plan funding to community-based behavioral health centers in underserved communities. Funding is designed to increase access to and the quality of community mental health and substance use treatment services.
Centers for Medicare and Medicaid release report on health care savings from enhanced tax credits
The Centers for Medicare and Medicaid have released a state-by-state table outlining premium savings from enhanced tax credits in the American Rescue Plan. National average savings total $40 a month compared to previous monthly rates.
Administration for Children and Families release summary of Child Care and Development Fund waiver approvals
The Administration for Children and Families has released a summary of American Rescue Plan Child Care and Development Fund waiver approvals, including a state-by-state table outlining details of waivers. This summary will be updated as additional waivers are received.
Administration for Children and Families releases guidance on Child Care and Development Fund mandatory and matching funds
The Administration for Children and Families has released guidance on extended mandatory and matching funds from the Child Care and Development Fund. This guidance includes information on allowable activities, dates for liquidating funds and reporting guidelines.
Housing and Urban Development
Federal Housing Administration extends single family eviction moratorium
The Federal Housing Administration has extended the single family eviction moratorium through Sept. 30. This does not impact the foreclosure moratorium, which expired July 30.
Business
U.S. Small Business Administration announces Paycheck Protection Program online portal
The U.S. Small Business Administration announced the launch of the Paycheck Protection Program application portal. This portal allows businesses to apply for up to $150,000 in loan forgiveness directly to the Small Business Administration.
Transportation
Federal Transit Administration updates frequently asked questions for COVID-19
The U.S. Federal Transit Administration (FTA) has updated frequently asked questions regarding the impact of COVID-19 on certain FTA requirements, including administrative relief and civil rights issues.
STATE UTILIZATION OF FEDERAL FUNDS
As state policymakers weigh options on how to maximize the relief from the American Rescue Plan, state officials have begun to appropriate the stimulus funds.
- Arkansas Gov. Asa Hutchinson has requested $200 million for increased bed space for COVID-19 patients and nursing staff support. Hutchinson estimates that 15% of the hospital population in the state consists of COVID-19 patients.
- A day after requesting assistance, Colorado is set to receive $11.6 million from the Federal Highway Administration for expedited work to repair and reopen Interstate 70 at Glenwood Canyon.
- Illinois announced the $250 million Back to Business grant program designed to assist small business recovery. The program includes $100 million for businesses in areas disproportionately impacted by the pandemic; $30 million for arts and entertainment businesses that have not received previous aid; $25 million for restaurants and taverns that did not receive money from the Restaurant Revitalization Fund; $25 million for hotels; and another $25 million for businesses that did not receive Business Interruption Grant funding.
- The U.S. Department of Education has approved New Jersey’s plan for American Rescue Plan (ARP) funding for K-12 schools. The plan intends to use $923 million in ARP Elementary and Secondary School Emergency Relief (ESSER) funding to reopen and operate schools, especially schools in high-risk communities.
- The Virginia General Assembly adopted a budget that intends to spend $3.4 billion in federal aid for the coming fiscal year while saving the additional $1.1 billion for the Finance Committee to utilize over the next few years.
- Three West Virginia higher education institutions will be splitting more than $516,000 for COVID-19 relief from the U.S. Department of Education Higher Education Emergency Relief Fund (HEERF). Alderson Broaddus University will receive $317,569, Mercer County Technical Education Center will receive $105,541 and Monongalia County Technical Education Center will receive $93,68.