On Wednesday morning, Congress gave final approval to the American Rescue Plan Act. The $1.9 trillion relief package now heads to the president’s desk for signature.

Along with additional relief payments, expanded social safety net programs, and bolstered funding for businesses, the bill also maintains $65.1 billion in direct federal funding for cities.

Under the act, cities are authorized to use federal funds to:

• Respond to the COVID-19 pandemic;
• Cover costs incurred as a result of the public health emergency;
• Replace lost, delayed, or decreased revenues due to COVID-19;
• Address the negative economic impacts of the pandemic; and
• Make necessary investments in water, sewer, and broadband infrastructure.

Cities will have the authority to transfer funds to private nonprofit organizations, public benefit corporations, or special units of local or state government.

Cities will receive their allocations in two tranches: the first tranche will be available to cities 60 to 90 days after the bill passes; the second tranche will be available 12 months after the first tranche is distributed. Cities will have until December 31, 2024, to spend federal dollars.

AWC has compiled an that contains projected allocations for cities from the Treasury. These estimates are not official values and are subject to change.

More details on how cities will be able to access these funds are forthcoming.

President Biden is expected to sign the bill into law by Friday, March 12.