How Much Phoenix Will Get From $350 Billion American Rescue Plan

PHOENIX, AZ — The U.S. Department of Treasury on Monday released a breakdown of what kind of financial help communities can expect from the $350 billion Coronavirus State and Local Fiscal Recovery Funds.

Phoenix is set to receive $396.08 million, and was among 24 Arizona municipalities allocated financial support through the support program.

Maricopa County netted $871.24 million from the program, four times more than the next closest Arizona county.

"With this funding, communities hit hard by COVID-19 will be able to return to a semblance of normalcy; they'll be able to rehire teachers, firefighters and other essential workers – and to help small businesses reopen safely," said Treasury Secretary Janet Yellen in a statement.

The emergency funding for local governments was established by the American Rescue Plan Act of 2021. The funds are meant to be used to respond to acute pandemic-response needs, fill revenue shortfalls among state and local governments, and support the communities and populations hardest-hit by the COVID-19 crisis, according to the Treasury.

During the Great Recession of 2007-2009, when cities and states were facing similar revenue shortfalls, the federal government didn't provide enough aid to close the gap, Yellen said.

In addition to allowing for flexible spending up to the level of their revenue loss, the Treasury states, recipients can use funds to:

• Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral health care, mental health and substance misuse treatment, and certain public health and safety personnel responding to the crisis
• Address negative economic impacts caused by the public health emergency, including by rehiring public sector workers, providing aid to households facing food, housing or other financial insecurity, offering small business assistance, and extending support for industries hardest hit by the crisis
• Aid the communities and populations hardest hit by the crisis, supporting an equitable recovery by addressing not only the immediate harms of the pandemic, but its exacerbation of longstanding public health, economic and educational disparities
• Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service during the pandemic
• Invest in water, sewer and broadband infrastructure, improving access to clean drinking water, supporting vital wastewater and stormwater infrastructure, and expanding access to broadband internet

The city of Phoenix is still considering its options when it comes to the funding, which will come in two increments, one year apart, City of Phoenix Director of Communications Jeanine L'Ecuyer told Patch.

Phoenix Assistant City Manager Jeff Barton will present the city's options, regarding how the funding can be used at the May 18 Phoenix City Council meeting, L'Ecuyer said.