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The American Rescue Plan Act of 2021: What We Know so Far.

LaBella has been tracking the American Rescue Plan Act of 2021 to understand the impacts to our clients’ communities. While we know you may be aware of the act, and the funding you will be receiving, we are actively following the act to learn about any detailed rules and regulations that will be attached to the funding so we can help you navigate the process.

While the detailed rules have not been released, below are the basic provisions on use of the funds for municipalities from the bill (included on page 2 of Senator Schumer’s summary).

  • Costs associated with responding to the COVID-19 public health emergency or its negative economic impacts, including but not limited to, assistance to households, small businesses, and nonprofits or aid to impacted industries such as tourism, travel, and hospitality.
  • To support workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers or by providing grants to eligible employers that have eligible workers who perform essential work.
  • To cover revenue losses caused by the COVID-19 public health emergency.
  • To make necessary infrastructure investments in water, sewer, or broadband infrastructure.

Actual estimated allocations are included on the remaining pages of the summary (Please note that village allocations will be a percentage share of their town’s allocation. The amount will be based on the percentage of the town’s population that is located within the village).

Additional Notes:

  • Local governments could transfer funds to private nonprofit groups, public benefit corporations involved in passenger/cargo transportation, and special-purpose units of local governments.
  • 50% of the funding will be sent within 60 days of March 11 to New York State; remainder one year after.
  • New York State would be required to transmit payments to local government within 30 days of receipt (please note that entitlement communities such as Buffalo, Rochester, Erie County, etc. will get a direct payment from the federal government). New York State would have no discretionary authority to change the amount of, or attach additional requirements to, such payments.

The full New York State and Local Aid Explainer can be viewed by clicking here.

We will keep you informed of any updates as we learn more and are prepared to as you recover from the pandemic.