The American Rescue Plan Act (ARPA), a far-reaching COVID recovery measure, was signed into law by President Biden in March 2021. This $1.9 trillion measure provides direct financial relief to Americans, assistance to businesses, and aid to states, counties, and municipalities. Cities and towns receive ARPA funding through the newly created State and Local Fiscal Recovery Fund (SLFRF). Distributions were based on the formula used by the Federal government when distributing Community Development Block Grants.
The Town of Swampscott will receive approximately $4.5 million in these relief funds over the course of the next two years. Funds are distributed in two tranches, and Swampscott has already received the first half of the total allocation. All of the funding must be expended by December 31, 2024.
While ARPA has a broad range of allowable spending categories, the funds do come with limitations on how these funds can be spent in the community. Most importantly, there must be a relationship between the pandemic, its effects, and the steps the Town is taking to respond and recover from it. The broadly acceptable categories of use include costs incurred to:
- Respond to the COVID-19 public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
- Pay workers providing essential work during the COVID-19 public health emergency;
- Provide government services to the extent of the reduction in revenue to the Town due to the COVID-19 public health emergency in the most recent full fiscal year; and
- Make necessary investments in water, sewer, or broadband infrastructure.
Swampscott is conducting a community-wide survey of Swampscott residents and business owners for their thoughts about what the Town should do with funding received from ARPA. Together we are tasked with recognizing areas where one-time investments can have long-term benefits to our residents and community. Through close collaboration, we will identify solutions that allow for economic growth and development while making the right choices for our community.
How would you spend these federal funds give to Swampscott? Fill out the survey below to make your voice heard. We thank you for your participation!
