The city of Peachtree Corners recently awarded grants to 11 non-profits that serve residents of the city. Many may be confused as to what the city can do with that money. Peachtree Corners Magazine has compiled this brief explainer.
On March 11, 2021, the American Rescue Plan Act was signed into law. It allocated $1.9 trillion in a state and local fiscal recovery fund to aid states, counties, and cities in responding to the COVID-19 pandemic and its impacts “on the economy, public health, state and local governments, individuals, and businesses.”
For 2021 and 2022, the fund has allocated over $4.8 billion to the Georgia state government and $3.5 billion to local governments in the state. That is more than $2 billion for Georgia counties, $1.4 billion for Georgia cities, and $861 million for “non-entitlement” municipalities (governments serving populations of under 50,000).
Cities, such as Peachtree Corners, can use that money to:
- 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; and
- Invest in water, sewer, and broadband infrastructure.
Cities have until December 31, 2024, to disperse funds and until December 31, 2026, to spend funds.
The National League of Cities has put together a list of frequently asked questions about ARPA. Access it here: https://www.nlc.org/covid-19-pandemic-response/american-rescue-plan-act/arpa-local-relief-frequently-asked-questions/
Georgia’s allotment of American Rescue Plan Act funds
State government $4.85 billion+
City governments $1.4 billion+
County governments $2 billion+
Non-entitlement units $861.8 million+
(local governments serving populations of less than 50,000)
Source: U.S. Department of the Treasury
