Rhode Island to Receive $1.67 Billion in Federal Aid Through American Rescue Plan

Strategic Insights -

Rhode Island will receive $1.67 billion in federal aid through the American Rescue Plan, a significant portion of which will be dedicated to state and local governments. This funding is a result of the Biden administration's efforts to support state and local governments in their response to the COVID-19 pandemic. Senator Jack Reed, who helped secure the funds, is encouraging the state and local governments to develop a strategic plan to spend the money wisely and request the funds in a timely manner. The funding will be used to support public health expenditures, address negative economic impacts caused by the pandemic, replace lost public sector revenue, and invest in water, sewer, and broadband infrastructure.

Key Takeaways:

  • Rhode Island is slated to receive a total of $1.67 billion in federal aid, with about half of the money being made available to local governments in 2021 and the second tranche available a year later.
  • The state and local governments will have broad latitude to use the funding to support government services, including COVID-19 costs, negative economic impacts, government services, or infrastructure investments.
  • The federal funds may be used to support public health expenditures, address negative economic impacts caused by the public health emergency, replace lost public sector revenue, provide premium pay for essential workers, and invest in water, sewer, and broadband infrastructure.
  • Rhode Island's biggest cities, including Providence, Pawtucket, and Woonsocket, will receive a total of $273 million, with the majority of the funds going to Providence.
  • The state will have until the end of 2024 to use the funds for eligible uses, including COVID-19 costs or its negative economic impacts, government services, or infrastructure investments.
  • Senator Jack Reed has championed the funds, arguing that no state, including Rhode Island, and its localities could have budgeted for pandemic-related costs and that the federal government needs to be a reliable partner.

Statistics:

  • Total federal aid allocated to Rhode Island: $1.67 billion
  • Breakdown of federal aid:

+ State of Rhode Island: $1.131 billion

+ Rhode Island's biggest cities: $273 million

+ Smaller communities across the state: $205.7 million

  • Projected distribution of federal aid to communities in the following counties: Bristol, Kent, Newport, Providence, and Washington.
  • Estimated $113 million may be utilized by the state for critical capital projects throughout Rhode Island to directly enable work, education, and health care, including remote options, in response to the pandemic.

Sources:

  • United States Senator for Rhode Island Jack Reed RI slated to get $1.67 billion that Sen. Reed helped secure for RI in the State & Local section of the American Rescue Plan
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