Less than two months after introducing the American Rescue Plan (ARP), President Biden has signed the $1.9 trillion bill into law.

The massive federal relief package brings critical financial assistance to individuals and businesses, as well as state and local governments across the country. Under the plan, cities and towns will share $65.1 billion in direct and flexible federal funds with $1.1 billion coming to Washington cities.

Cities can use the ARP funds for:

• Responding to the COVID-19 pandemic.
• Covering costs incurred from the public health emergency.
• Replacing lost, decreased, or delayed city revenues caused by the pandemic.
• Addressing the negative economic impacts on local businesses and nonprofits.
• Making necessary investments in water, sewer, and broadband infrastructure.

Federal funding should start flowing to cities in the next few months and will be distributed in two tranches: the first will arrive in 2021 and the second in 2022. Funds will be available to cities through December 31, 2024. AWC has compiled a chart of projected allocations for cities; however, the estimates are not official values and are subject to change.

In addition to city funding, the ARP provides $1.4 billion directly to Washington counties and $4.25 billion for the state.

The stimulus package establishes numerous new programs and funds. We understand that there are a lot of unanswered questions about how the funding will flow to cities. AWC is actively involved with the state and federal leaders to find answers. We will provide updates to our members as the information becomes available.

Thank you to all our city leaders who advocated for federal funding for Washington cities. You made a difference and helped show that cities are essential.

We are deeply grateful to our federal leaders for maintaining direct flexible funding for local communities. The relief package will provide city leaders with critical resources to recover and rebuild from the pandemic.

AWC has designed a fact sheet to help city officials understand what programs and funds were created by the American Rescue Plan.

Starting Friday, March 19, the National League of Cities will host weekly half-hour calls for cities to discuss updates on the American Rescue Plan. These calls will continue through April 23.