American Rescue Plan Act Funding

On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by President Biden. Section 9901 of ARPA amended Title VI of the Social Security Act (the Act) to add section 602, which establishes the Coronavirus State Fiscal Recovery Fund, and section 603, which establishes the Coronavirus Local Fiscal Recovery Fund (together, the Fiscal Recovery Funds). The Fiscal Recovery Funds are intended to provide support to State, local, and Tribal governments (together, recipients) in responding to the impact of COVID-19 and in their efforts to contain COVID-19 on their communities, residents, and businesses. The Fiscal Recovery Funds build on and expand the support provided to these governments over the last year, including through the Coronavirus Relief Fund (CRF).

The City of Portsmouth will receive $12.8 million in ARP funds. The US Treasury Department has established specific guidelines for the use of those funds.

The passage of the FY22 City budget moved $400,000 out of Capital Projects due to the potential to use American Rescue Plan grant money. That shift is dependent on the City’s understanding of the Federal guidelines for use of the $6.44 million Portsmouth has received (the first tranche of two years of funding), and the Treasury Department’s approval of the City’s plan to apply them.

The two projects identified in the budget – City Hall HVAC improvements and citywide storm drainage improvements would seem to qualify under the very specific definitions of eligible projects. According to US Treasury guidelines, these include:

  • Support public health expenditures;
  • Address the negative economic impacts caused by the public health emergency;
  • Replace lost public sector revenue;
  • Provide premium pay for essential workers
  • Invest in water, sewer, and broadband infrastructure
  • Invest in cybersecurity
  • Initiatives to address climate change

At the June 14 City Council Work Session, residents learned more about what is eligible and how the City is planning for use of American Rescue Plan funding. For that ARP overview, click here. 

For overall information about the program, including information on requesting funding, click here.