American Rescue Plan Act Recovery Fund

Latest News

City Council Allocates Additional $2.9 million in American Rescue Plan Act Funds.

Funding approved on November 14, 2022 will support projects to break the cycle of inter-generational poverty through land banking in the Boston-Thurmond Community,  expand housing for veterans experiencing homelessness, renovate 34 apartment units in East Winston-Salem for affordable housing, construct a 5-unit co-housing home, provide necessary infrastructure for the development of affordable housing in Stone Terrace, and support a driver restoration and vocational expansion initiative. Learn more.

Background

The city received $51.7 million from the Coronavirus Local Fiscal Recovery Fund. Money for the fund was included in the $1.9 trillion American Rescue Plan Act of 2021 that Congress passed in March 2021. 

The Coronavirus Local Fiscal Recovery Fund is designed to give cities flexibility in responding to the health emergency and in funding projects, programs, or organizations that were economically impacted by the pandemic. In addition to programs specific to pandemic response and recovery, certain improvements to water, sewer and broadband infrastructure also can be funded, as well as programs or improvements for low-income census tracts.For more information on the American Rescue Plan Act, visit the White House's website.

City Spending Principles

The city staff is committed to these principles in spending ARPA funds:

  • Transparency. The city will be open and transparent with all uses of ARPA funds, including holding public input sessions and creating public-facing dashboards.

  • Restoration. The city will use part of the funds to provide assistance to city operations and the local economy affected by COVID-19.

  • Transformation. The city will be outcome-oriented in the use of funds and will document progress made is specific and in strategic priority areas.

  • Fiscal Soundness. Because the funds are one-time in nature, the city will seek not to create recurring obligations using these funds.

  • Equity. All program and grant expenditures will undergo an equity review to ensure resources are equitably distributed throughout the community.

These are the guidelines that the council must follow:

Spending Guidelines

Can be used for: 

 Cannot be used for:

  • Restoring local government revenue and/or the provision of government services.

  • Making up for the economic impact caused by COVID-19 by providing grants to small businesses, non-profits, households and tourism, hospitality and the arts.

  • Providing a pay supplement to local government workers performing essential work, or to provide grants to businesses with employees performing essential work.

  • Financing water, sewer and broadband projects.

  • Programs related to health, crime, housing, employment, and childhood education in low-income census tracts, also known as qualified census tracts (QCTs).

  • Cannot be used to reduce the tax rate.

  • Cannot be used to delay a new tax or tax increase.

  • Cannot be deposited into pension funds.


Coronavirus Local Fiscal Recovery Funds Timeline

  • October 17, 2022 - City Council approves $6.1 million in Transformational Grants to community organizations. Learn more.
  • September 19, 2022 - City Council approves $2 million for a partnership with WinstonNet to implement a Digital Equity Pilot Program. Learn more.
  • August 29, 2022 - Staff provides an update on the 89 proposals received through the Transformational Grants application. Learn more.
  • March 28, 2022 - City Council approves revenue replacement, in alignment with UNC School of Government best practices for management of ARPA funds. Learn more.
  • February 21, 2022 - City Council approves a set-aside of $10.5 million for a transformational grants program. Learn more.
  • December 2021 Update public briefing -- Recovery grant eligibility and application preview. Watch in English. View the PowerPoint Presentation slide deck
  • November 15, 2021 - City Council approves a recovery grants program to support business and non-profits. Learn more.
  • November 2021 Update public briefing -- Grant eligibility, prioritization and administration. Watch in English. 
  • October 2021 Update public briefing – Allocation plan overview. Watch in English. Watch in Spanish.
  • September 15, 2021 - UPDATED: Map of Qualified Census Tracts. Go to the map.
  • August 23, 2021 - Special workshop of the City Council on potential Coronavirus Local Fiscal Recovery Funds. Learn more. Or, watch the meeting.
  • August 16, 2021 - City Council resolved to accept the Coronavirus Local Fiscal Recovery Funds. Learn more.
  • April 28, 2021 - Public Input meeting on the American Rescue Plan Act. Watch the meeting.
  • April 5, 2021 - Update on Next Steps for the American Rescue Plan Act. Learn more.
  • March 15, 2021 - Update on the American Rescue Plan Act. Learn more.