Counties and the American Rescue Plan Act Recovery Fund: Intergovernmental Partnerships
The Recovery Fund and Partnerships
The Coronavirus State and Local Fiscal Recovery Fund (Recovery Fund), part of the American Rescue Plan Act (ARPA), which NACo helped to develop and strongly advocated to pass, allocates $65.1 billion. These funds provide direct, flexible aid for every county, parish and borough in America. Counties are on the front lines in delivering this aid to residents and are a driving force connecting communities and strengthening the economy.
As directed by the ARPA and the U.S. Department of Treasury, counties can invest Recovery Funds into a broad range of programs, services and projects under four categories: public sector revenue; public health and economic response; premium pay for essential workers and water, sewer and broadband infrastructure.
Since the enactment of the ARPA, America’s counties have been working hard to develop Recovery Fund implementation plans that will help spur an equitable economic recovery across the nation. As sound financial stewards, counties are investing these critical Recovery Funds to ensure the health and well-being of our nation’s residents and the economic vitality of our local communities. Many counties are in the preliminary stages of development and implementation of Recovery Fund Plans. This report highlights county investments complemented by intergovernmental partnerships to efficiently deliver programs and services, leverage state funding opportunities and support a regional approach to recovery.
Counties Manage Billions in Intergovernmental Revenue
Annually, counties receive $196 billion in intergovernmental revenue including federal, state and local sources. These funds are integral for county operations, services and programs.
Source: NACo Analysis of U.S. Census Bureau - Census of Individual Governments: Finance, 2017
Counties Plan to Invest Recovery Funds to:
Counties are Fostering Intergovernmental Partnerships to Support Key Investments
How will counties invest the funds? NACo analysis of 200 county ARPA Recovery Fund plans reveals county-designed investments in the community across key areas of need. These local priorities are found within county plans at the rate displayed in the chart. Intergovernmental partnerships are unique in that they encompass all topic areas detailed below. The examples in this report further illustrate county allocations to support these integral partnerships across areas of need.
Counties and the ARPA Recovery Fund Series
The Coronavirus State and Local Fiscal Recovery Fund, part of the American Rescue Plan Act (ARPA), which NACo helped to develop and strongly advocated to pass, allocates $65.1 billion. These funds provide direct, flexible aid for every county, parish and borough in America. Counties are on the front lines in delivering this aid to residents and are a driving force connecting communities and strengthening the economy.
This report highlights how counties have begun investing Coronavirus State and Local Fiscal Recovery Funds to support rural communities and residents across the country.
County Investments of American Rescue Plan Recovery Funds
On November 14 the U.S. House voted 336-95 to pass a two-part, or “laddered,” Continuing Resolution to extend Fiscal Year 2023 spending and avoid a government shutdown.
Reps. Katie Porter, Nancy Mace, Kweisi Mfume, Byron Donalds, Gerry Connolly, Brian Fitzpatrick, Eleanor Holmes Norton and Juan Ciscomani re-introduced the bipartisan Vote by Mail Tracking Act to increase transparency of and confidence in mail-in ballots.
The Streamlining Federal Grants Act simplifies the grant application process for local governments to improve access to federal grant funding.