The American Rescue Plan Act provides $350 billion in emergency funding for state, local, territorial, and Tribal governments to respond to the COVID-19 public health emergency, or its negative economic impacts. Here are a few things you need to know:


  • Amount of Funding: State, territory and tribal governments will receive $220 billion while local governments will receive approximately $130 billion.


  • Additional Funds: There is an additional $123 billion available to help K-12 schools, $40 billion for higher education institutions, $15 billion for the Child- Care and Development Block Grant; and 24 billion for the Child Care Stabilization Fund.


  • Requirements: Funding can be used to:
    • Cover expenses that are public health efforts responding to the COVID-19 pandemic, and for efforts to address the pandemic’s economic impact, including assistance to households, small businesses and nonprofits, or aid to impacted industries such as tourism, travel and hospitality;
    • Make investments in public health infrastructure (e.g., broadband, water, and sewer); and
    • Respond to decreases in revenue due to the COVID-19 pandemic.


  • Funding Cannot Be Used For: Tax cuts, pensions, non-allowable spending


  • Funding Expires: December 31st, 2024


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