Agenda Item: 16
Prepared By: Guillermo Polanco
Business: City Manager's Report
Department: Finance
Subject:
Title
American Rescue Plan Act (ARP)
Body
BACKGROUND:
On March 11, 2021, on the anniversary of COVID-19 being declared a global pandemic, the American Rescue Plan Act of 2021 (ARP) was signed into law. The Act is intended to speed up the recovery of the economic recession caused by the COVID-19 pandemic in the United States.
The stimulus package totals $1.9 trillion with $350 billion included in the Coronavirus Local Fiscal Recovery Fund. This amount is earmarked for states, municipalities, counties, tribes, and territories. The Funds for the State of Florida are currently estimated as follows:
$9 billion for Florida State Government
$1.46 billion for Florida Metro Cities
$4.1 billion for Florida Counties
$1.39 billion for Florida small cities, towns, and villages
$364 million for Florida Broadband Investment Program
It appears the preliminary documents have incorrectly grouped us with the Metro Cities, as those are usually Cities with populations over 50,000. According to the documents that have been published by different organizations, the City of Marco Island has been allocated $2.13 million. Naples is included in the list of Towns, with an allocation of $9.28 million. It is customary for Metro Cities to receive their funding directly from the US Treasury, whereas smaller municipalities are funded through the State and sometimes through the Counties, as was the case with the Coronavirus Aid, Relief, and Economic Security Act (CARES) funding.
According to the National League of Cities (NLC), it "is working on a summary of provisions relevant to municipalities and local leaders." The NLC is also lobbying U.S. Treasury, as it develops its rules, to not allow the States to develop rules that are more stringent than those included in the Act itself, or as promulgated by the U.S. Treasury. The Secretary of Treasury can allow up to ...
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