American Rescue Plan in NC

In March 2021, the American Rescue Plan (ARP) Act was passed by Congress and signed into law by President Biden. Enacted one year into the COVID-19 pandemic, the law provided transformational policies and funding to sectors ranging from health, transportation, direct relief, and more.

The ARP included $350 billion for state and local governments to pay for much-needed investments to respond to the COVID-19 pandemic and to begin to build back stronger communities through the State and Local Fiscal Recovery Funds. Of that amount, approximately $8.9 billion would come to North Carolina state and local governments. These dollars represent a transformational opportunity to address the specific needs identified in, and by, communities.

Fiscal Recovery funds were received by the state of North Carolina in addition to all 100 counties, 26 metro areas, and more than 500 smaller cities and towns in the state.

In addition to State and Local Fiscal Recovery Funds, the ARP included dozens of issue-specific funding streams that, in general, were received by state agencies. See below for links to more information.

Funds could be spent in the following four major categories:

Replace lost public sector revenue
Support the COVID-19 public health and economic response
Provide premium pay for eligible workers performing essential work
Invest in water, sewer, and broadband infrastructure

The American Rescue Plan Matters

The COVID-19 pandemic had a disproportionately negative impact on certain communities – particularly low-income communities of color. Research also shows us that those communities were worse off economically prior to the pandemic, which was then exacerbated by the pandemic.

The American Rescue Plan provides once-in-a-generation funding to address the disproportionate harms of the pandemic, prioritize equitable solutions to the issues communities have faced, and build more inclusive processes for deciding how public money is allocated to people’s priorities.

These transformational dollars present an opportunity for a transparent and accessible process where all community members get a say in how to prioritize ARPA funds, in addition to prioritizing dollars that benefit low-income community members and community members of color.