FISCAL RECOVERY FUNDS
Several weeks ago, Mayor Woodfin joined Rep. Terri Sewell to announce more than $140 million in federal relief to the City of Birmingham as part of the American Rescue Plan Act. Half has been deposited now and we will receive the remaining half in about a year.
Thank you to those who submitted project ideas.
We received over 150 project idea submissions for the City's fiscal recovery funds by our June 30th 5pm CT deadline. Project ideas will be reviewed by an interdisciplinary committee of city staff. Idea submitters can expect updates on the timeline for review in the coming weeks.
Interim Guidance on Uses
On Monday, May 10th, the U.S. Department of Treasury announced their Interim Final Rule for how the City can spend Coronavirus State and Local Fiscal Recovery Funds. We are still reviewing this Treasury guidance to better understand allowable uses. We expect further amendments to the rules in the coming weeks and months, but we know we can spend the dollars in the following broad categories.
Supporting the public health response
Mitigating the impact of COVID-19 continues to require an unprecedented public health response from state, local, territorial, and Tribal governments. Coronavirus State and Local Fiscal Recovery Funds provide resources to meet these needs through the provision of care for those impacted by the virus and through services that address disparities in public health that have been exacerbated by the pandemic. Recipients may use this funding to address a broad range of public health needs across COVID-19 mitigation, medical expenses, behavioral healthcare, and public health resources.
Addressing the negative economic impacts caused by the public health emergency
Serving the hardest-hit communities and families
While the pandemic has affected communities across the country, it has disproportionately impacted low-income families and communities of color and has exacerbated systemic health and economic inequities. Low-income and socially vulnerable communities have experienced the most severe health impacts. Coronavirus State and Local Fiscal Recovery Funds allow for a broad range of uses to address the disproportionate public health and economic impacts of the crisis on the hardest-hit communities, populations, and households.
Replacing lost public sector revenue
Providing premium pay for essential workers
Investing in water and sewer infrastructure
Investing in broadband infrastructure
Treasury’s Interim Final Rule identifies several other ineligible uses, including funding debt service, legal settlements or judgments, and deposits to rainy day funds or financial reserves. Further, general infrastructure spending is not covered as an eligible use outside of water, sewer, and broadband investments or above the amount allocated under the revenue loss provision. While the program offers broad flexibility to recipients to address local conditions, these restrictions will help ensure that funds are used to augment existing activities and address pressing needs.