05-04-2021 American Rescue Plan Act• The American Rescue Plan Act became law on March 11, 2021 (P.L. 117-2)
• Third major pandemic aid law
• (1) CARES
• (2) Coronavirus Relief and Supplemental Appropriations Act of 2021
• (3) American Rescue Plan
• Rescue Plan Theory: Address impacts from the pandemic and shutdowns on:
• Individuals
• Vaccine distribution and infrastructure
• Direct Payments, Unemployment Insurance, Child Care credits
• Business
• Small Business
• Specific Sectors
• Aerospace
• Restaurants
• Public Sector
• State, County, Local, Tribal Governments
• More accountability, eligibility and reporting requirements than previous aid packages— lessons learned
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Comprised of 11 Titles, or Chapters.
• Title I. Agriculture, Nutrition & Forestry
• Title II. Health, Education, Labor and Pensions
• Title III. Banking, Housing & Urban Affairs
• Title IV. Homeland Security & Government Affairs
• Title V. Small Business & Entrepreneurship
• Title VI. Environment & Public Works
• Title VII. Commerce, Science & Transportation
• Title Vill. Veteran's Affairs
• Title IX. Finance
• Title X. Foreign
• Title XI. Indian Affairs ��" OF
Federal Way
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American
Rescue P
Economic Impact Payments
22.1%
State & Local Governments
18.8%
Small Business {PPP}
.711/a
Expanded Unemployment Insurance
15.8(/o
Djansions
4.6%
Testing, Tracing & Vaccines
6.6%
Child Tax Credit
7.%
Transportation & Infrastructure
14.4%
• Mayor & Finance Director Identify Revenue Holes Created from COVID-19
• Utilize Local Fiscal Recovery Funds
• Approve Strategy to Utilize some of the Remaining Funds to Acquire More Federal
Funds through Hiring Contract Grant Writers
• City Mgmt. Team to Identify Opportunities to Serve Community
• Meet with other Local Gov't Agencies
• Meet with Community Stakeholders
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• For the first time, all 19,000 municipal governments are entitled to a direct,
non-competitive federal formula grant from the U.S. Treasury Department.
• All cities, towns, and villages are entitled to a federal grant from the new
"Coronavirus Local Fiscal Recovery Fund."
• Aid obligated to municipalities is not in any way mingled with aid obligated
to state or county governments.
• Aid for municipalities is protected from state or county interference by
iron -clad statutes compelling states to comply, including penalties for
states that fail to carry out their responsibilities to small cities and towns.
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• The measure provides the following state and local funding:
• $195.3 billion for states. $25.5 billion will be distributed equally among
states. Other funds would be allocated based on each state's share of
unemployed people. The state of Washington is estimated to receive $4.25
billion.
• $130.2 billion for local governments. $65.1 billion for counties, $45.6 billion
for metropolitan cities, and $19.5 billion for towns with fewer than 50,000
people.
• States and localities are allowed to transfer
entities, including special purpose districts
CARES Act
their funding tocertain public
— this was not clarified in the
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• Eligible Uses.
• Respond to the Covid-19 emergency and address its economic effects, including through aid to
households, small businesses, nonprofits, and industries such as tourism and hospitality.
• Provide premium pay to essential employees or grants to their employers. Premium pay couldn't
exceed 13 per hour or $25,000 per worker.
• Provide government services affected by a revenue reduction during the pandemic.
• Make investments in water, sewer, and broadband infrastructure.
• Other funding for states and localities:
• $10 Billion for Capital Projects. Funding to carry out capital projects to support work, education,
and health monitoring during COVID-19. This could include broadband and other network
infrastructure funding.
• $3 billion to the Economic Development Administration. This will provide additional funding for
existing EDA programs. -CITY OF
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• $65.1 billion in funding to address an estimated $90 billion combined revenue shortfall.
• Grant Calculations are Based on a Modified CDBG formula
• 70% of funds, or $45.5 billion, is obligated to cities with 50,000 or more residents
• Grant calculations based on population size, poverty rates, and measures of housing instability. (Prioritizes targeting
to need)
BE PATIENT
US TREASURTY DETERMINES THE CALCULATION
• 2 Year Funding Certainty
• Grants will be released in 2 tranches. (%2 following enactment and %2 12 months following receipt of first payment).
• Spending Deadline
• Money remains available until December 31, 2024; unexpended funds must be returned to Treasury.
Direct Stimulus Payments
• $1,400 per person, reduced eligibility ($80,000)
• Local governments should have an economic mobility strategy
Tax Credits
• Enhances Earned Income, Dependent Care, and Child Tax Credit
• Employee Retention Credit and Paid Leave Credit
• Makes states and local governments eligible for FFCRA paid leave
reimbursable tax credit, beginning March 31, 2021
Benefits
• Enhanced Unemployment Insurance
• Extends Supplemental Nutrition Assistance Program (SNAP)
• Extends Special Supplemental Nutrition Program for Women, Infants,
and Children (WIC)
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• $7.25 billion in additional lending authority for the Paycheck Protection Program
• Application process and requirements will be similar, but more stringent on
proving business losses
• $28.6 billion for a Restaurant Revitalization Fund to be administered by the SBA
• Eligible recipients would include restaurants, bars, food trucks, and caterers.
Grant amounts would cover the difference between an entity's revenue in
2020 compared with 2019.
• Awards would be reduced by amounts received through the Paycheck
Protection Program.
• Eligible expenses generally would include payroll costs, mortgage and rent
payments, supplies, normal food and beverage costs, and paid sick leave.
• $15 billion for SBA's Economic Injury Disaster Loan (FIDE) program
• The SBA would have to allocate $10 billion to covered entities that
didn't receive their full eligible advance payments under the year-
end relief package. Those entities include recipients with 300 or
fewer employees and economic losses of at least 30% over eight
weeks compared with a similar period before the pandemic.
• $10 billion for the State Small Business Credit Initiative
• Funding for Shuttered Venue Operators
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• Supplemental vaccination and testing grants for state and local distribution
• Funding available to state and local government public health departments to
support workforce
• Funding available for community health centers
• Block grants under the Substance Abuse and Mental Health Services
Administration
• Medicaid and Medicare provisions that will apply at the state level, ACA
provisions
• 100% COBRA subsidy
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• Child Care and Development Block Grant —these go to the State then to
providers
• Child Care Stabilization grants; Child Care Entitlement to States
• Emergency Funding to states for low-income families with children
• Mental Health Services Block grant
• Grants to Community Behavioral Health Clinics
• Funds for Head Start, home visiting programs, child abuse prevention and
treatment grants, family violence grants
• Older American Act funding, including nutrition programs
• LIHEAP for energy assistance, plus water/sewer assistance
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• Federal Emergency Management Agency (FEMA)
• Maintain 100% FEMA reimbursement to states and local governments (Apply!)
• FEMA firefighter, SAFER, and emergency management performance grants
(Suggest joint grant)
• Transportation
• $30.5 Billion for Transit Agencies
• Agencies can generally use the money for operating expenses including payroll costs
and purchasing PPE
• Airport & Railroad funding —costs related to operations and COVID response; airports aid
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• ESSERF: School districts ventilation systems, support staff, reduced class
sizes, PPE, learning loss remediation --Must have plan to return to in -
person operations
• IDEA funding, non-public schools through governor; School and library
internet funding through FCC E-rate program
• States must maintain spending on both K-12 and higher education in FY
2022 and FY 2023 at least at the proportional levels relative to a state's
overall spending, averaged over FY 2018, FY 2019 and FY 2020.
• States cannot cut per -pupil spending for high -need districts more than
other districts; cannot fund highest -poverty districts below FY19 funding
• Emergency rent relief and utility assistance; extra for rural housing
• Homeowner Assistance Fund —mortgage payments, property taxes,
utilities, insurance
• Housing —not more than 15% of funds can be used for admin by
states and local governments
• VA construction funds to upgrade homes; support for state -operated
facilities
• Emergency housing vouchers to address homelessness
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Seniors
• Supportive Services
• Vaccinations
• Social Isolation
• Family Caregiving
• Elder Abuse
• Support for Transportation
$1.4 billion
$UNK
$460 million
$145 million
$UNK
$350 billion
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• Emergency assistance through Temporary Assistance for Needy
Families (TANF)
• Food supply chain —USDA purchases of food and seafood, seafood
processors; support for Farmer's Markets
• Extends Supplemental Nutrition Assistance Program (SNAP)
• Extends Special Supplemental Nutrition Program for Women, Infants,
and Children (WIC)
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• Low -Income Household Drinking Water and Wastewater Emergency
Assistance Program created under the FY 2021 Omnibus to assist with
payments for drinking water and wastewater expenses
• Funding for LIHEAP, $4.5 billion
• Funding for Water Assistance Program, $500 million
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• National Endowment for the Arts
• $135 million
• National Endowment for the Humanities
• $135 million
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1. Use dedicated grants and programs first whenever possible
Save Local Fiscal Recovery Funds for gaps and priorities not eligible for other
federal and state assistance programs
2. Assess government operations AND community needs
Ask staff and stakeholders for help creating a comprehensive needs assessment
3. Prioritize fiscal stability and returning to work
Save pet projects for earmarks
4. Maintain records and document success
Create long-term information infrastructure for your future leaders
5. Your Congressional Delegation is part of your success
Invite Members of Congress to re -openings, ribbon -cuttings, etc...
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