American Rescue Plan Act

American Rescue Plan Act of 2021

City of Hermitage

Introduction

On March 11, President Joseph R. Biden signed the $1.9 trillion American Rescue Plan Act of 2021 (ARPA), which established the Coronavirus State and Local Fiscal Recovery Fund. ARPA provides funding for many programs and services nationwide. Included in the plan is $360 billion of one-time aid directly allocated to states, counties, and municipalities. 

The City of Hermitage is set to receive $1,619,337 in ARPA funds over the next two years. The city has received the first of two installments in the amount of $809,669. A second installment is anticipated in the same amount in the Spring/Summer of 2022. The city has until December 31, 2024, to obligate funds and December 31, 2026, to spend the funds.

The U.S. Department of Treasury has limited the use of ARPA funds to the following areas:

1. To respond to the public health emergency or its negative economic impacts;
2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers;
3. For the provision of government services to the extent of the reduction in revenue due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and 
4. To make necessary investments in water, sewer, or broadband infrastructure.