Bills

H.R. 1319, the American Rescue Plan

Resources

American Rescue Plan Act of 2021 Summary of Provisions (NLC)

American Rescue Plan Local Relief Frequently Asked Questions (NLC)

Local Recovery: Five Principles for ARP Implementation (NLC)

Estimated Local Allocations in the American Rescue Plan (NLC)

NLC COVID-19 Pandemic Response and Relief

Title by Title Summary of the American Rescue Plan

The Budget Resolution and Reconciliation: An Alternative Path for the American Rescue Plan

NLC Brief – Fiscal Impact of the Pandemic

Revenue Loss for Cities, Boroughs, Towns and Townships as a Share of Total Own-Source Revenue by State, 2020

Letters

March 3, 2021: The League expresses support for The American Rescue Plan to the Senate

February 13, 2021: The League expresses support for The American Rescue Plan to Congress

February 12, 2021: The League signs onto a coalition letter endorsing the reconciliation language providing direct funding to local governments

December 18, 2020: The League asks Senators Casey and Toomey for greater Coronavirus Relief Funds flexibility for local governments

November 24, 2020: The League asks Senators Casey and Toomey to provide direct federal funding to local governments

November 24, 2020: The League asks Congress to provide direct federal funding to local governments

May 14, 2020: The League asks Congress to provide direct COVID relief to local governments

May 5, 2020: Pennsylvania local government associations call on Governor Wolf to share federal COVID dollars with local governments

April 23, 2020: The League asks Governor Wolf to invest in the recovery of the Commonwealth's local governments

Advocacy Success: American Rescue Plan

Over the last year, The League has worked in partnership with the National League of Cities (NLC) and our members to advocate for flexible and direct federal funding for local governments. The League, along with NLC, worked diligently to advocate to Congress on our members’ behalf through letters, press releases and meetings, in addition to engaging members in our advocacy efforts through press conferences and take action alerts.

President Joe Biden signed The American Rescue Plan into law on March 11, ensuring direct funding for local governments. Thanks to our collective efforts, Pennsylvania will receive roughly $13 billion dollars, close to $8 billion of which will go directly to our local governments to help recover from the pandemic.

Under the American Rescue Plan, local governments are directly allocated $65.1 billion out of the total $350 designated for states, local and tribal governments. Of this direct funding, about $45.5 billion will go to CDBG entitlement communities and about $19.5 billion will go to non-entitlement communities. For non-entitlement municipalities with a population less than 50,000, allocation will be capped at 75 percent of the municipality’s most recent pre-pandemic budget. Additionally, the grants will be allocated in two separate tranches, and you would not need to spend the entire amount of the first tranche in order to receive the second tranche. The grant funds must be used by December 31, 2024, as all money not spent will be returned to the U.S. Department of Treasury.

The U.S. Department of Treasury has 60 days to develop the regulations regarding the grants, including eligible uses of the funds, providing definitions and generally clarifying language in the American Rescue Plan. Additionally, Treasury will come out with the final list of grant allocations, so it is possible the current grant estimate for your municipality may change as Treasury is the ultimate arbiter for the amount each local government will receive. While we wait for more guidance and information from Treasury, there are a few things we do know: municipalities may use grant funds for revenue replacement; grant funds may be transferred to private non-profits, public benefit corporations involved in transportation of passengers and cargo, and special purpose units of state and local governments; grant funds cannot be used for pensions; and grant funds will be no more restrictive than the CARES Act Coronavirus Relief Fund.

We ask that you please be patient while we wait for Treasury to release their regulations, and we encourage you to visit the resources provided on this webpage.

We will continue to work with NLC and our Congressional delegation to provide information to all of you as it becomes available.