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Local municipalities to receive funding from American Rescue Plan

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SYLACAUGA, Ala. – Last Thursday, President Biden signed the American Rescue Plan, a COVID-19 relief package totaling $1.9 trillion.

Nearly $360 billion was allocated to help states, counties, cities and tribal governments cover increased expenditures, replenish lost revenue and mitigate economic harm from the COVID-19 pandemic.

The state of Alabama will receive roughly $4 billion, of which $2.1 billion is allocated to state government, $779 million to municipalities and $951 million to counties.

Funds must be spent by Dec. 31, 2024, and will be distributed in two tranches, with 50% delivered no later than 60 days from the date of enactment and the remainder delivered no earlier than one year later.

States should distribute funds to smaller towns within 30 days of receiving a payment from the department.

Here are estimates of what municipalities in our area will receive under the American Rescue Plan:

  • Childersburg: $900,000
  • Goodwater: $240,000
  • Oak Grove: $100,000
  • Sylacauga: $2.23 million
  • Talladega: $2.87 million
  • Talladega Springs: $30,000

Eligible uses for funds include:

  • Respond to the COVID-19 emergency and address its economic effects, including through aid to households, small businesses, nonprofits and industries such as tourism and hospitality.
  • Provide premium pay to essential employees or grants to their employers. Premium pay couldn’t exceed $13 per hour or $25,000 per worker.
  • Provide government services affected by a revenue reduction resulting from COVID-19.
  • Make investments in water, sewer and broadband infrastructure.
  • State and local governments could transfer funds to private nonprofit groups, public benefit corporations involved in passenger or cargo transportation, and special-purpose units of state or local governments.
  • State and local governments cannot use the funds towards pensions or to offset revenue resulting from a tax cut enacted since March 3, 2021.

To view the full list of funds for the state of Alabama, click here.

 

 


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