City of Birmingham Allocates Funds for Revenue Loss Recovery Through American Rescue Plan

The Mayor’s Office has recommended and the Birmingham City Council has approved the allocation of more than $42.6 million from the city’s American Rescue Plan funds to revenue loss recovery to address the economic impact of the pandemic on the city’s 2020-2021 fiscal year, which ended in June. The federal funds are part of the city’s more than $140 million allocation from the U.S. Department of Treasury as part of the American Rescue Plan. One of the funding objectives identified by the Treasury Department for American Rescue Plan funds is to replace lost revenue to support vital public services. As part of the funds allocated to revenue loss recovery, the council designated $18 million to support the city’s bus rapid transit project. The additional $24.6 million will be designated at a later time. The $18 million allocation for the bus rapid transit project will address overages created by an increase in construction costs due to the pandemic. The project is fully funded through a partnership between the city and the Federal Transit Administration in the U.S. Department of Transportation. Funding was approved today to move forward in addressing deadlines connected to the bus rapid transit project. Previously, the city allocated more than $17 million from the American Rescue Plan to provide one-time premium pay for employees’ continued service during the pandemic. The current allocations are through the first of two installments of American Rescue Plan funds from the federal government. The city will receive the second installment of more than $70 million in the Spring of 2022. The city is currently evaluating more than 150 submissions from the public, city employees and council members related to the federal funds. The city will determine whether proposed projects meet the rules for allowable uses set forth in the Interim Final Rule by the U.S. Department of Treasury.