A unique opportunity for governments and place-based funders: A commentary by Darius Graham

ARPA's $350 billion opportunity and what philanthropy can do

In March 2021, President Joe Biden signed the American Rescue Plan Act (ARPA), which provides $1.9 trillion in funds across federal, state, and local governments. The funding streams are numerous and most funds flow through existing programs and agencies to bolster health and economic recovery — for example, $28.6 billion for the Small Business Administration's Restaurant Revitalization Fund and $21.6 billion to continue rent relief. While it would be impossible to identify any one source as more important than another, there is a portion of the funding that presents a unique opportunity for governments and place-based funders to ensure that local communities' urgent needs are prioritized — equitably and strategically — in both the immediate and long term.

Included within ARPA is $350 billion in State and Local Fiscal Recovery Funds (SLFRF) that will be allocated to state, local, territorial, and Tribal governments with no specific predetermined use.

According to the U.S. Treasury Department, the SLFRF's goals are to:

• Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control
• Replace lost revenue for eligible state, local, territorial, and Tribal governments to strengthen support for vital public services and help retain jobs
• Support immediate economic stabilization for households and businesses
• Address systemic public health and economic challenges that have contributed to the unequal impact of the pandemic

Notably, these funds offer substantial flexibility for governments to meet local needs and can be used to make investments in water, sewer, and broadband infrastructure. These flexible funds, which must be committed by the end of 2024, provide governments with the opportunity to fund immediate needs, fill gaps, and/or make strategic investments....

Read the full commentary by Darius Graham, program director for Baltimore at The Harry and Jeanette Weinberg Foundation.