Counties pivot to implementation following $65.1 billion American Rescue Plan win

Key Takeaways

Following President Biden’s signing of the American Rescue Plan March 11, NACo is soliciting feedback from counties that will help the federal government craft guidance on how the $65.1 billion in direct county funding contained in the stimulus plan can be used.

A survey in NACo’s COVID-19 Recovery Clearinghouse will allow members to ask questions that will be fundamental to the Treasury Department’s guidance on spending, input NACo is requesting by 5 p.m Eastern Wednesday, March 17.

“This is truly a one-in-a-lifetime investment in county government that provides much-needed relief and will be crucial to our nation’s recovery,” NACo President Gary Moore said of the bill. Moore is also judge/executive of Boone County, Ky.

Do More

Take the survey that will help inform federal guidance on American Rescue Plan spending

Check out NACo's COVID-19 Recovery Clearinghouse

Each county government will receive a split of the $65.1 billion, estimates of which are available on through the clearinghouse, and counties containing public lands will receive an additional $1.5 billion. Counties will not have to suballocate their funding to cities and towns or ask states for the suballocations, as they did under the CARES Act. There will be some restrictions on funding use, such as funding pensions.

“The implementation is almost as important as getting the plan passed in the first place,” said Mark Ritacco, NACo’s director of government affairs. “The reason we’re here is because of the work of our members, the credibility that our members brought to the federal policy discussion, so therefore all of NACo’s comments about how to implement this plan will be informed by our members.”

NACo Executive Director Matt Chase applauded the House and Senate for passing the State and Local Coronavirus Fiscal Recovery Funds and thanked President Biden for signing the bill into law

 “The legislation recognizes counties’ vast responsibilities to care for our most vulnerable residents – our sick, unemployed, elderly and youth,” he said. “For too long, the pressing challenges and needs facing our counties have outstripped our depleted local resources.”

Chase noted that the bill’s passage affirmed a strong federal-state-local partnership, and with it, an investment in counties on the front lines and a commitment to defeating this pandemic and its resulting economic devastation.

“While counties face record demand for essential services, we have shed jobs at rates far outpacing the rest of the economy,” he said. “Even as the nation’s economy inches toward recovery, one in every 10 jobs yet to be recovered is from our local governments.”

“The American Rescue Plan advances us on the road to recovery, honors our frontline heroes, and equips us to help end the pandemic and drive economic recovery,” Chase said.

“With the critical aid in this bill, we will now be able to strengthen our communities by investing in small businesses and nonprofits, vaccine distribution, public health and safety, human services, especially for those suffering from domestic violence, mental illnesses and substance use disorders, and much-needed infrastructure, including broadband.”