May 6

American Rescue Plan Act: What Government  Municipalities Should Know

Author: Dani Esterline

Photo of person getting vaccine
The American Rescue Plan Act- How Government Agencies Are Impacted

President Biden implemented The American Rescue Plan on March, 11, 2021. The relief pours into states and local government- what you should know is that the relief fund amounts to $1.9 trillion dollars and government sections can allocate the funding to whatever areas of need they see fit. 

Here's the numbers according to The U.S. Department Of The Treasury:
$195 billion for states
$130 billion for local governments, including counties, cities, and smaller local governments
$20 billion for tribal governments
$4.5 billion for territories
 How are government agencies using this funding strategically?
1. Expanding water and gas systems, public works, broadband infrastructure
The pandemic detracted many government agencies from ongoing community projects, and with the addition of ARPA (American Rescue Plan Act) government agencies can provide funding to continue the processes they were implementing before the pandemic.  Broadband infrastructure involves the technological development for government agencies, and using resources to inform residents.
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2. Funding for Essential Workers

Essential workers have been the backbone of society during the pandemic, and government entities are using funding to offer premium pay for these workers that have risked their lives during the pandemic. Essential workers consist of employees that are part of healthcare, retail and automotive industries. 
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3. Promoting Health and Safety of Residents
With the roll out COVID-19 vaccine, the federal government is encouraging vaccine distribution in municipalities. The American Relief Act gives government cities more funding so that every one in the U.S. can become vaccinated, with the hope to return to a sense of normalcy in society.
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There are some restrictions to the American Rescue Plan Act and government discretion, according to Sarah Wilson from Lexipol 
1: States and territories are barred from using funds either to directly or indirectly offset a reduction in their net tax revenue resulting from a change in law during the covered period that reduces or delays any tax or tax increase.
2: States, territories, metropolitan cities, municipalities and counties are also prohibited from using funds for deposit into any pension fund.


The American Relief Act Fund helps government agencies expand and progress towards economic stability, and the best part is the autonomy to choose where funding is needed. Revize specializes in making beautiful and functional websites for government municipalities. If you would like to learn more about our products and services, you can contact us for a demo by clicking here.

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