The purpose of the American Rescue Plan Act - often referred to as “ARP” or “ARPA” - is to provide fast and direct economic assistance for American workers, families, small businesses, and industries.
The American Rescue Plan continues many of the programs started by the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 and Consolidated Appropriations Act (2021) by adding new phases, new allocations, and new guidance to address issues related to the continuation of the COVID-19 pandemic. Generally speaking, ARPA funding has a longer timeframe for planning, implementation and spending than initial relief programs allowed. ARPA creates a variety of new programs to address continuing pandemic-related recovery as the United States begins to emerge from the COVID-19 pandemic.
The American Rescue Plan was passed by Congress on March 10, 2021 and signed into law on March 11, 2021.
How much funding is coming into Minnesota, and who is responsible for it? Minnesota was allocated $8.5 billion of Fiscal Recovery Funds, divided into three categories:
- $2.8 billion in flexible aid to the state (the State Fiscal Recovery Fund);
- $2.1 billion in flexible aid to local governments (Local Fiscal Recovery Fund); and
- $3.5 billion in program-specific federal funding.
For more information about the State Fiscal Recovery Fund and program-specific federal funding, please refer to the Minnesota Department of Administration’s website: American Rescue Plan / Minnesota Management and Budget (MMB) (mn.gov) and this blog from the Minnesota Budget Project: ReportDetails (mnbudgetproject.org)