After months of deliberation and the construction of President Biden’s $1.9 billion COVID-19 relief proposal, the American Rescue Plan, the Congress sent a final package for his signature on Thursday.  The President promptly signed the bill into law.  The near 700 page bill contains funding for a wide number of items – unemployment assistance, direct payment of monies to qualified residents, and monies for economic development to name just a few.
 
For RCRC, perhaps the most important aspect of the American Rescue Plan is the component that provides state and local financial assistance.  There were some noteworthy last-minute changes to the state and local funding as it secured passage in the U.S. Senate. Most notably, there will be $65.1 billion in direct, flexible aid for every county, parish, and borough.  A county’s allocation will be distributed in two tranches with states and localities receiving 50 percent of the funds up front (most likely to arrive into county coffers in mid-to-late May) and the remaining amount made available 12 months later.  Localities with a high proportion of unemployed individuals could be eligible to receive their first and second allotments simultaneously.  This eligibility for a state to receive its second tranche of funding based on unemployment will come at the discretion of U.S. Treasury Secretary, Janet Yellen.  Click here to download the County Allocation Projections Spreadsheet published by our county partners at NACo.

In addition, but associated with state and local assistance, is a $10 billion fund for state broadband infrastructure projects.  It is unclear how these monies will be fully allocated; however, each state will receive a minimum of $100 million with the remaining balance allocated under a complex formula.
 
Also, the relief package contains a new $2 billion annual public lands program.  This program was championed by Senate Finance Chair Ron Wyden (D-Oregon) for “communities and tribal governments that have historically been harmed by federal government policies.”  The new program will include $1.5 billion for eligible counties and $500 million for tribes over the next two years and, “takes into account economic conditions of each eligible revenue sharing county, using measurements of poverty rates, household income, land values, and unemployment rates as well as other economic indicators, over the 20-year period ending with September 30, 2021.”  Senator Wyden will work with Finance Committee Ranking Member Mike Crapo (R-Idaho), U.S. Treasury Secretary Janet Yellen, and counties to set up the new program to make payments based on economic conditions in each county.  Notably for RCRC, these eligible revenue share counties include public land counties that receive Payments in Lieu of‐Taxes and Secure Rural Schools payments, with $750 million allotted each year for federal Fiscal Years 2022 and 2023.
 
The American Rescue Plan will also provide California with:

  • Approximately $15 billion to help California’s K-12 schools reopen safely and comply with CDC guidelines.
  • $5 billion to California colleges and universities, half of which must go to emergency financial aid to students.
  • $3.8 billion to stabilize California’s childcare sector and make child care more affordable for families.
  • $4.6 billion to ensure access to safe, reliable transit services in California.