The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, part of the American Rescue Plan Act (ARPA), has played an integral part in meeting the needs of America’s cities, towns and villages in the wake of the COVID-19 pandemic. It has allowed communities to emerge from this once-in-a-generation challenge stronger and better prepared for the future. SLFRF stabilized municipal budgets during a time of great uncertainty and helped local governments maintain consistent spending for normal government operations and services with minimal interruption.
SLFRF allowed local leaders to be part of the solution for a nation in distress. It also provides a template for allocating direct federal funds to local governments in the future, which should include appropriate guardrails and reporting requirements. The f lexibility afforded by this program has resulted in a wide range of approaches to address residents’ needs, from enhancing public health and safety to revitalizing the municipal workforce, building affordable housing and stabilizing revenue streams. This investment was so successful because it allowed local leaders to deftly and efficiently respond to the specific needs of their communities.
This report reviews how the SLFRF program led to national results that were built on local actions centered on community needs. To demonstrate how direct funding supported municipalities throughout the pandemic, this report analyzes SLFRF reporting data over time and the different investments many local governments made to stabilize their budgets and maintain core municipal services for residents.
NLC’s analysis shows that the SLFRF program and its recipients:
- Generated an economic return greater than $2.84 for every $1 spent.
- Funded infrastructure, public safety, affordable housing, public health, community services and other critical local priorities.
- Accurately obligated and spent funds to meet the reporting deadlines and stay within compliance despite issues with the U.S. Department of the Treasury (Treasury) reporting portal and technical assistance lapses.
As cities, towns and villages look to the future, they will continue their efforts to fund and implement community priorities. This report demonstrates both the longlasting impact of the SLFRF program and how future federal funding dollars can be administered to prioritize both efficiency and federal grant oversight.