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, This week, The Council of State Governments releases a new online resource on the individual state allocations and expenditure categories in the American Rescue Plan Act. This week’s newsletter also includes a few recent developments that every state leader needs to know ranging from subject matter briefs on the Infrastructure Investment Jobs Act and movement on the Build Back Better legislation. Additionally, find news, guidance updates and resources towards fair housing initiatives, the new COVID-19 data dashboard from the Department of Education and additional guidance updates from the Department of the Treasury.
New This Week
State American Rescue Plan Utilization Database
Recognizing the desire of policymakers to learn and share best practices, The Council of State Governments conducted an extensive 50-state scan of the allocation of American Rescue Plan Act funds, focused on The Coronavirus State and Local Fiscal Recovery Fund. State ARP allocation data was collected by analyzing state actions, enacted legislation appropriating ARP funding and State Recovery Plan Performance Reports submitted to the U.S Department of the Treasury. In collaboration with the National Association of State Budget Officers, the state allocations were reviewed and verified by state budget offices.
The CSG State ARP Utilization Database includes information on categories of spending, legislative authority, summary of fund allocation, authorizing language, amount budgeted, distributing entity, distribution method and final approval.
View the CSG State ARP Utilization Database at https://web.csg.org/recovery/state-utilization/
NOTE: Database includes information from 40 states as of Nov. 22, 2021. CSG analysts are continuing to collect and verify data for the remaining 10 states and will update the website with additional state actions.
President Biden signs Infrastructure Investment Jobs Act Nov. 15
The Infrastructure Investment Jobs Act authorizes $1.2 trillion in funding ($550 billion of which is new spending) for various infrastructure purposes, including roads and bridges, broadband, drinking water resources, airports, electric vehicles and more.
- The bill can be found here.
- State specific summaries on the impact of the bill can be found here.
- CSG researchers have developed analyses of the legislation’s impact on:
o Power Grids, Utilities and Electric Vehicles
IMPORTANT UPDATES FOR STATE LEADERS
The House passes Build Back Better framework
On Friday, Nov. 19, the U.S. House of Representatives passed the Build Back Better framework, a package of investments in education, health care, the environment and a variety of other social service initiatives. The Senate approved a related budget resolution in August, which differs markedly from the bill the House passed Friday. As such, the Senate will begin its review of the House version.
CSG researchers will be analyzing the fine print as the legislation continues to evolve. But some highlights for states in the House version include:
- Child Care/Pre-K Education:
o Subsidies for child care – for lowest income earners, child care would be free; for those earning up to 250% of their state’s median income, cost would not exceed 7% of income.
o Education – Universal pre-Kindergarten for children ages 3 and 4 (fully funded by federal government).
o Funds distributed to states through existing Child Care and Development Block Grant formula.
- Elder Care: Increases the amount states receive to pay for in-home and community-based care for seniors by 6%.
- Employers (including state government): Provides funds for four weeks of paid leave for numerous family (birth or adoption of a child, etc.) or health (caregiving to ailing relative, etc.) events.
- Health Care: Expands Medicaid coverage to individuals in 12 states that have not implemented Medicaid expansion under Affordable Care Act. Currently, in the 38 ACA-participating states, individuals earning below the federal poverty line and are not otherwise eligible for Medicaid can get private health insurance coverage without paying a premium. Currently, in the 12 nonparticipating states, those individuals (approximately 2.2 million adults) have to pay a premium of private insurance. Under the Build Back Better framework, individuals in the 12 states would not pay a premium.
- Electric Vehicles: Tax credit of up to $12,500 for purchase of domestically produced vehicles – benefits automobile production states such as Kentucky and Tennessee where Ford recently announced substantial expansion of EV production. Toyota also has announced plans for production expansion.
- Tax Provision: Lifts cap on the federal tax deduction of state and local taxes from $10,000 to $80,000.
NEWS, UPDATES AND RESOURCES
U.S. DEPARTMENT OF THE TREASURY:
Department of the Treasury updates State and Local Fiscal Recovery Fund compliance and reporting guidance
The updated guidance can be found here.
The Treasury publishes Coronavirus Capital Projects Fund environmental checklist
This checklist aids entities in identifying the environmental laws that may apply to their project. The checklist can be found here.
Department of the Treasury updates the status of payments to states for distribution to non-entitlement units
The latest update was Nov. 15 and can be found here.
Department of the Treasury releases periodic report on outstanding municipal liquidity lending facilities
This report was published Nov.12 and can be found here.
The Treasury publishes materials on the State Small Business Credit Initiative
These materials include applications, implementation guidance and a fact sheet, which can be found here.
U.S. DEPARTMENT OF AGRICULTURE:
USDA Food and Nutrition Service updates database on waivers for Supplemental Nutrition Assistance Program, electronic benefit transfers and retailers
These updated databases can be found here.
USDA-FNS encourages state agencies to highlight benefits of COVID-19 vaccine to those enrolled in SNAP benefits
Recommendations can be found here.
USDA-FNS releases memo regarding flexibilities related to SNAP claims and collection of benefit overpayments
These flexibilities include waivers, allotments and online SNAP purchasing. More information regarding these flexibilities can be found here.
U.S. DEPARMENT OF COMMERCE:
Economic Development Administration announces $314 million in state travel grants
Thirty-four states and the District of Columbia will receive the first round of these grants to support marketing, infrastructure and other projects that promote travel. The list of awardees and more information about the grants can be found here.
U.S. DEPARTMENT OF EDUCATION:
The Department of Education provides updates on the American Recovery Plan Act Elementary and Secondary School Emergency Relief Fund
These updates include:
- The approval of more state plans and distribution of more funding. State plans can be found here.
- Updated maintenance of equity materials.
- Updated maintenance-of-effort wavier requests.
- More Emergency Assistance for Non-Public Schools funding was awarded. More information about each award can be found here.
The U.S. Secretary of Health and Human Services and the U.S. Secretary of Education released a joint letter regarding child vaccinations
The letter can be found here.
Department of Education approved 15 Homeless Children and Youth state plans
Plans submitted by Sep. 7 and made available as they are approved. State plans can be found here.
The Department of Education publishes COVID-19 data dashboard
This dashboard includes data regarding in-person verses hybrid schooling, COVID-19 case rates and hospitalizations. The dashboard can be found here.
The Department of Education publishes policy letters on Individuals with Disabilities Act
These letters were published Nov. 10 and cover part B and part C of the Act. Both letters state the department will continue to monitor states as they meet obligations under the act. Both letters can be found here.
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES:
The Centers for Disease Control and Prevention recommends the pediatric Pfizer vaccine to children ages 5-11
Vaccination is approximately 91% effective at preventing COVID-19 among children ages 5 to 11. The media release can be found here.
Centers for Medicare and Medicaid Services updates table regarding coverage of the pediatric COVID-19 vaccine
The vaccinations are covered with no out-of-pocket costs for Children’s Health Insurance Program, Basic Health Program and almost all Medicaid beneficiaries. The table can be found here.
CMS requires Medicare- and Medicaid-certified providers and suppliers to receive the COVID-19 vaccination
More information regarding this requirement can be found here and Frequently Asked Questions can be found here.
CMS Medicare Final Rule includes information regarding COVID-19 reporting
The rule extends the mandatory COVID-19 reporting requirements for nursing homes to Dec. 31, 2024. The final rule can be found here.
Administration for Children and Families collecting comments on proposed form that gathers information about the obligation of American Rescue Plan Act Stabilization funds
Comments are due on Nov. 22. The full proposal can be found here.
Biden administration announces new investments to help COVID-19 response and recovery efforts
These investments will help the hardest hit and highest risk communities and populations. A breakdown of how the $785 million will be used can be found here.
Health Resources and Services Administration awards funds to community-based organizations helping with COVID-19 vaccine efforts
The administration awarded $77 million in American Rescue Plan Act funding to nine community-based organizations building vaccine confidence and bolstering COVID-19 vaccinations. The nine recipients can be found here.
Centers for Medicare and Medicaid Services releases updated calculation factors for federal basic health program payment rates
This bulletin also answers questions relating to states’ implementation of the American Rescue Plan Act and can be found here.
Administration for Children and Families releases letter regarding Low Income Household Water Assistance Program comment period, requirements and training opportunities
A webinar regarding quarterly annual reports will be held Dec. 7 from 2:30-4 p.m. ET. There will be office hours during December and January. More information can be found here.
Administration for Children and Families opens two new American Rescue Plan Act Child Care Data Collections for comment
The first presents information on providers who receive stabilization grants and the second proposes changes on the Quality Progress Report because of pandemic supplemental funding increases. More information on the data collections can be found here.
Administration for Children and Families announces COVID and Safety Net Innovation Technical Assistance Initiative
This project will examine new approaches that support the economic and social needs of vulnerable families. More information about the initiative can be found here.
Administration for Community Living provides more information on $150 million investment to help with the needs of people with disabilities and older adults
This money will increase the public health workforce’s disability and aging expertise in assistance to those disproportionately affected by emergencies. More information about the funding can be found here.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT:
HUD announces $13.6 million in ARP funding towards fair housing initiatives
This funding will help Fair Housing Initiatives Program agencies conduct fair housing enforcement, education and outreach activities related to the pandemic. These organizations will address discriminatory practices in underserved communities. More information about the funding can be found here.
Office of Inspector General releases memorandum on lessons learned from past audits of the Community Development Block Grant Disaster Recovery Program
The goal of these insights is to help HUD lessen risks for the grantees of the Covid Community Development Block Grant Disaster Recovery Program. More than 44% of grantees reviewed did not follow requirements, resulting in more than $1.7 billion in costs. The memorandum can be found here.
Fact sheet on accessing HOME-ARPA administrative and planning funds available
The fact sheet gives step by step instructions on how to access administrative and planning set aside funds online. The fact sheet can be found here.
INDEPENDENT AGENCIES:
Federal Communications Commission commits $421 million in additional emergency connectivity funding
This additional funding brings the total program funding to over $3.05 billion. The funding will be used to support schools and libraries in helping students stay connected. More information about the funding as well as a list of allocations by state can be found here.
FCC reaches $150 million for COVID-19 telehealth program (Round Two)
The FCC approved an additional 75 applications for funding totaling $42,163,705. The press release can be found here.
OTHER:
Government Accountability Office report examines federal spending transparency
The GAO found that while the Treasury and Office of Management and Budget have made progress in validating data received, improvements can be made in how data is reported online. One of the GAO’s recommendations is to differentiate between submissions and transactions on USAspending.com. The full report as well as GAOs recommendations can be found here.
Biden administration extends 100% federal cost share for Stafford Act to address COVID-19
This applies to emergency protective measures and the deployment of the National Guard. This is applicable until April 1, 2022. The memorandum can be found here.