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American Rescue Plan: State/Local Funding

The American Rescue Plan (ARP), approved by Congress and expected to be signed into law this week, will provide $1.9 trillion to counteract economic declines related to the Coronavirus pandemic. In addition to direct economic relief for individuals, families, & small businesses, and significant investments in public health infrastructure related to the pandemic, important provisions of the American Rescue Plan provide fiscal relief to states and localities to help them respond to this crisis. These include:

  • Fiscal aid to state & local governments.
  • Funding to incentivize Medicaid expansion and enhance home- and community-based services.
  • Aid to elementary, secondary, and higher education.
  • Investments in child care to support families and child care providers.
  • Support for programs that serve children, seniors, and low-income families.

This paper outlines the major components of this aid:

This paper provides further detail about state & local fiscal aid specifically, including uses, process for distribution, and allocations to smaller jurisdictions whose funding projections were not included in the broader report.

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