WASHINGTON, D.C. – The American Rescue Plan Act (ARPA) delivered $65.1 billion of direct federal aid to cities, towns and villages across the country through the Coronavirus State and Local Government Fiscal Recovery Funds (SLFRF) program. This funding has helped local governments make up for lost revenue, respond to COVID-19, and support residents and communities in need as they continue to recover from the pandemic.
This new report by the National League of Cities (NLC) finds that SLFRF helped stabilize local governments and their communities and positively support residents through direct engagement. Additionally, SLFRF did not lead to excessive municipal spending or cause global or national inflation.
This report examines how ARPA and the SLFRF program:
- Stabilized municipal budgets to maintain resident service delivery by analyzing local government revenue and expenditure data over a five-year period.
- Promoted local investments into communities and residents by examining projects municipalities supported with these funds.
- Guided small localities as they learned how to manage federal grants and how the Treasury engaged grantees throughout the process.
- Relied on data to ensure the communities that were in the most need received equitable funding to address their needs.
The National League of Cities (NLC) the voice of America’s cities, towns and villages, representing more than 200 million people. NLC works to strengthen local leadership, influence federal policy and drive innovative solutions. Stay connected with NLC on Facebook, Twitter, LinkedIn and Instagram.