American Rescue Plan Act (ARPA)
Federal Funds Aid Local Recovery
In an effort to assist individuals, businesses, nonprofits, and state and local governments in dealing with the public health and economic impacts from the COVID-19 pandemic, Congress approved the American Rescue Plan Act of 2021 (ARPA) in March. ARPA provides federal stimulus funds intended to address the ongoing economic recovery following substantial financial losses suffered during the pandemic.
Through the efforts of the National League of Cities and state associations such as the League of California Cities, the bill included $130 billion in federal stimulus funds for local governments. This money was divided evenly between counties and local government agencies, and funding was provided to cities based on 2019 population size. Concord expects to receive $27 million for COVID-19 response and recovery.
By law, all of the local government funds must be allocated by December 31, 2024 and spent no later than December 31, 2026.
The U.S. Department of the Treasury has issued rules regarding how the funds can and cannot be used. Examples of allowable expenses include:
- Replacing lost City resources and revenues
- Assistance to individuals and families to recover from the economic impacts of the pandemic
- Education and childcare
- Health, including mental health services
- Other programs, including disaster relief, and making necessary investments in sewer, storm water systems, or broadband infrastructure
Between fall 2021 and spring 2022, the City of Concord will seek community input regarding how the funds should be spent. The City Council has already allocated $7 million to fund the City’s COVID testing program for staff, and to provide essential services when revenues fell short during the pandemic.
The Council is now seeking feedback regarding how to apply the remaining $20 million to generate the best investment for the Concord community.
Please look for information about upcoming community meetings and surveys that will provide an opportunity for you to voice your opinion on how Concord should invest these funds.