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American Rescue Plan: State & Local Fiscal Relief Fact Sheet

The American Rescue Plan provides a total of $360 billion in fiscal aid to state, local, and tribal governments to address increased costs and lost
revenue related to the pandemic.

Missouri’s estimated state & local relief aid is projected to total more than $5.4 billion, including approximately:

  • $2.816 billion in state fiscal relief,
  • $1.19 billion for counties,
  • $830 million for cities with a population greater than 50,000
  • $442 million for other local jurisdictions with a population less than 50,000, and
  • $195 million for the state for specific capital projects.

See the county map and searchable table below or at this link for a breakdown of fiscal relief projections by counties, cities, and other local jurisdictions. This information is also listed in the PDF version of this report.

Find the allocation for your area:

Allowable Uses of Funds

Fiscal relief funds must be spent by December 31, 2024 and can be used to:

  • Respond to the COVID pandemic or the resulting negative economic effects
  • Provide “premium pay” to essential public workers (up to a maximum premium of $13/hour or $25,000 per worker)
  • Provide services (equivalent to the amount of revenue loss due to the pandemic)
  • Invest in improvements to water, sewer, or broadband infrastructure

This includes efforts to promote economic recovery, such as assistance to households, small businesses, or nonprofits, or industries hit hard by the pandemic.

States may not use these funds to directly or indirectly reduce net tax revenue. This restriction will remain in place from March 3, 2021 until a state spends all remaining funds. If states violate this restriction, they must repay an equivalent amount of the federal aid.

Estimated Missouri State & Local Aid Funds from the American Rescue Plan

State & Local Fiscal Relief (Total) $5,475,000,000
State & Local Fiscal Relief (State Only) $2,816,000,000
State & Local Fiscal Relief (Counties) $1,190,000,000
State & Local Fiscal Relief (Cities) $830,000,000  
State & Local Fiscal Relief (Other Local Jurisdictions) $442,000,000
State & Local Fiscal Relief (Capital Projects) $195,000,000

Disbursement of Funds

The process required to receive the funds varies by entity:

State of Missouri

  • States must submit a certification to the Department of Treasury indicating that they will spend the money for allowable purposes.
  • Following this certification, the Department of Treasury will have 60 days to send the state its allocation. The Secretary of the Treasury is authorized to withhold up to 50% of the state’s allocation for up to 12 months based on the Secretary’s assessment of a state’s unemployment rate.

Counties & Municipalities

  • Aid funds will be distributed to county and municipal governments in two installments, or “tranches.”
  • Fifty percent of the funds will be distributed initially, within 60 days of the legislation going into effect.
  • The remaining fifty percent will be delivered twelve months later.

States will be responsible for disbursing funds to municipalities with populations under 50,000 people, based on municipalities’ share of population. The Department of Treasury will send funds directly to all counties and to municipalities with populations over 50,000 people.

Coronavirus Capital Projects Fund

$195 million will be available to Missouri to fund “critical capital projects directly enabling work, education and health monitoring, including remote options” in response to the public health emergency.

The U.S. Department of Treasury must develop a process for applying and distributing these funds within 60 days.

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