It is the first time in our current workforce’s history that a significant chunk of federal funding will be flowing to local governments and public water utilities in the form of grants. The model being used in the American Rescue Plan Act may also be replicated in the current administration’s push for infrastructure funding. For many organizations this is a huge opportunity, but getting the most out of it will require an understanding of the options.
The American Rescue Plan act made $350 billion available for state and local governments of all sizes for four main purposes and must be used by 2025:
Large local governments will receive funding directly from the U.S. Treasury in two equal portions, the first of which will arrive in May. The second portion will be released a year later. For smaller municipalities, the payments will flow through their state government within 30 days after the state receives the distribution from the Treasury. A tabulation of state and local allocation estimates was published and Raftelis has used this data to develop this tool to help visualize the estimated amounts that governments may receive.
There may be more to come. The Biden Administration has announced their plan for infrastructure investment, called the American Jobs Plan, and it is touted as an economic recovery package that goes beyond the traditional views of infrastructure investment. If passed, this legislation would include $111 billion for water, wastewater, and stormwater systems, $100 billion for broadband infrastructure, $213 billion to rehabilitate affordable housing, and $115 billion for bridges, highways, and roads.
Raftelis can support your success by developing a prioritized approach to leverage these funding resources for maximum benefit: