American Rescue Plan Act (ARPA) Funding

On March 11, 2021, President Joe Biden signed the American Rescue Plan Act of 2021 (H.R. 1319) into law. The $1.9 trillion package, based on President Biden's American Rescue Plan, is intended to combat the COVID-19 pandemic, including public health and economic impacts. 

As part of the American Rescue Plan Act of 2021, the $362 billion Coronavirus State and Local Fiscal Recovery Fund provides local fiscal aid to support urgent COVID-19 response efforts, cover increased expenditures, replenish lost revenue and mitigate economic harm from the COVID—19 pandemic. 

The distribution of the $362 billion is allocated as follows: 

• States Fiscal Recovery Fund ($219.8 billion)
• States and District of Columbia: $195.3 billion
• U.S. Territories: $4.5 billion
• Tribal Governments: $20 billion
• Local Fiscal Recovery Fund ($130.2 billion)
• $65.1 billion in direct federal aid to all counties
• $65.1 billion to cities and other non-county municipalities
• Coronavirus Capital Projects ($10 billion)
• Local Assistance and Tribal Consistency Fund ($2 billion) 

Funds may cover costs from March 3, 2021 through December 24, 2024. 

The City will receive a total of $40,427,539  over the course of two installments, with 50% provided beginning in May 2021 and the balance delivered approximately 12 months later. 

The City may use the funds to: 

• Support public health expenditures related to the COVID-19 pandemic
• Address negative economic impacts caused by the public health emergency
• Serve low income communities and individuals, families and businesses hardest-hit by the pandemic
• Provide premium pay for essential workers
• Replace public sector revenue lost due to the pandemic
• Invest in necessary improvements to water, sewer, and broadband infrastructure

Within these categories, fund recipients have broad flexibility to decide how to best use this funding to meet needs. 

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Focus Areas 

At the November 2021 work session, the City Council gave consensus for staff to focus on and bring back projects related to the following 3 areas, with the listed budget allocation, and as allowed under the American Rescue Plan guidelines and rules.

Housing and Community Livability 

• The legislation allows assistance to households who have been impacted by the COVID-19 pandemic
• Resilient Residents (Economic Stability, Housing Affordability, Health and Wellness, and Transportation and Convenient Access to Essential Services)
• Thriving Communities (Preserving History/Restoring Pride, Safety and Security, Property Code Compliance, Community Connections and leadership, Zoning Policies/Development Incentives)

Business and Economic Vitality

• The legislation allows for assistance to businesses and nonprofits.
• Invest in the Workforce (Workforce training aimed toward economic activity, invest in partnerships with local workforce training organizations, incentivize re/opening of high-quality home-based childcare providers)
• Invest in Business Development (Expand capital infusion opportunities, create financial support to business to create online solutions to new/different markets, Help local businesses shift to online sales and automation)

Infrastructure and Community Reinvestment

• Congressional language explicitly allows the American Rescue Plan allocations for infrastructure and community based projects.
• Multi Model Accessibility (neighborhood connectivity, Sidewalk connectivity, ADA infrastructure compliance, and quality streets) – 6.5 (Waddell, Kinston, Haire, Davis, Wright, Mayor, MPT =.5)
• Safer Communities (storm water Mitigation and Emergency response)

There are three phases for ARPA spending. Phase one and two are complete, Phase 3 is underway. 

Phase I:  (May-December 2021) - The initial phase of ARPA award is focused on providing immediate relief to address the negative impacts caused by the COVID-19 pandemic. The City of Fayetteville aimed to support agencies assisting disproportionately impacted communities, small businesses, and the hospitality industry, including downtown revitalization. In this phase, the City began identifying revenue loss and eligible uses of funding.

The Mayor and City Council, working closely with relevant stakeholders and city staff, identified specific projects and programs to help achieve these objectives and established a clear plan for obligating funds to these initiatives. 

Phase II: (January to July 2023) - The second phase of the ARPA award is focused on aligning funding with identified City Council and community goals. The primary objectives for this phase are:

• Fund projects and programs that support the recovery efforts in the community
• Ensure that funded initiatives align with the City Council and community goals
• Implement and Execute approved projects and programs

Phase III: (January 2023) - The third phase of the American Rescue Plan Act - Project Implementation (ARPA-PJ) is focused on reassessing community needs and monitoring large projects and programs funded by ARPA. The primary objectives for this phase are:

• Reassess community needs to ensure that funding is fully appropriated by December 2024
• Fund and monitor large projects and programs that support the recovery efforts in the community
• Ensure that funded initiatives align with the City Council and community goals
• Establish a system to monitor and control the progress of funded projects regularly

• Coronavirus State and Local Fiscal Recovery Fund Guidance for State, Territorial, Local and Tribal Governments 
• Coronavirus State and Local Fiscal Recovery Fund Frequently Asked Questions 
• Coronavirus State and Local Fiscal Recovery Fund Fact Sheet 

• American Rescue Plan Act of 2021 
• American Rescue Plan 
• U.S. Department of the Treasury COVID-19 Economic Assistance for State, Local and Tribal Governments 
• Coronavirus State and Local Fiscal Recovery Funds 
• National Association of Counties Overview for America's Counties: U.S. Treasury Interim Final Rule and Guidance for State and Local Fiscal Recovery Funds

• Cumberland County
  • ARP Community Survey Dashboard
  • Community Meetings Calendar
• North Carolina League of Municipalities
• National League of Cities
• United States Treasury
• The White House

The City will as residents, business and community organizations to provide feedback on community needs that have developed as a result of the COVID-19 Pandemic via a Community Needs Survey.

The feedback provided will be aggregated and provided to City and County Leaders as they strategize and plan the use of funds provided to the City through the American Rescue Plan Act (ARPA).

Survey links:

English:

• Individual
• Business

Spanish:

• Individual
• Business