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