American Rescue Plan: How it will impact local governments

For the Tomahawk Leader

NORTHCENTRAL WISCONSIN – The North Central Wisconsin Regional Planning Commission (NCWRPC) in a Tuesday, April 6 newsletter explained the local impact of the American Rescue Plan Act (ARPA).

“The American Rescue Plan Act (ARPA), signed into law on March 11, 2021, provides $1.9 trillion in mandatory funding, program changes and tax policies aimed at mitigating the continuing effects of the pandemic,” NCWRPC stated. “Included are significant funds for states, local, and tribal governments.”

Local governments across the country will directly receive a total of $130.2 billion, with half, or $65.1 billion, going to counties, and the other half going to cities, villages, and towns, generally allocated according to population. Wisconsin is expected to receive over $5.6 billion, with about half going to counties and local units of government, according to the newsletter.

“In our ten-county region, we expect about $140 million – an estimated $85 million to our counties and over $55 million to our cities, villages, and towns,” NCWRPC said. “Tribes will also receive funding, but no information is available at this time related to amounts.”

Lincoln County is expected to receive a total of $5,351,492, with $1,204,790 allocated to cities and $1,522,792 set aside for towns, according to data from the National Association of Counties and NCWRPC.

NCWRPC said the funds, which will be “coming soon,” will be distributed through the Treasury Department. The first half will be available 60 days from the signing of the bill and the balance one year later. Communities will have three years to spend the funds.

“These dollars represent the largest federal infusion to budgets in decades,” NCWRPC stated. “Now, the challenge is how to best to utilize these dollars.”

According to language in the ARPA, funds can be used for the following purposes:

  • To respond to the coronavirus health impacts or economic impacts, including assistance to households, small businesses, nonprofits, and impacted industries including hospitality, travel, and tourism.
  • To provide premium pay for essential workers, up to $13 an hour, with an annual cap of $25,000.
  • To cover for lost revenue in providing services.
  • To make investments in water, sewer, or broadband infrastructure.

“Note that the U.S. Treasury is still crafting the final language and reporting requirements,” NCWRPC said. “There is some discussion that the fourth bullet related to infrastructure might be expanded to include bridges and roads.”

NCWRPC said the National Association of Counties, National League of Cities, and various state associations “are spending substantial time reviewing the details of the ARPA.”

About NCWRPC

The NCWRPC is a “public agency dedicated to providing professional planning services to member local governments,” serving Adams, Forest, Juneau, Langlade, Lincoln, Marathon, Oneida, Portage, Vilas, and Wood counties, according to its website. It was founded in 1973 as the ninth regional planning commission created under Wisconsin Statute s.66.0309. It is funded through grants from federal and state programs, a local membership fee based on equalized valuation of its member governments, and local project contracts. The NCWRPC is governed by three commissioners from each member county, who oversee the activities of the executive director and staff.

For more information on NCWRPC, visit www.ncwrpc.org/.

Scroll to Top