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

DENVER, CO — 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.

Denver is set to receive $308 million. The city was among 19 Colorado municipalities allocated financial support through the program.

The funds will help to restore Denver services, eliminate furloughs, support vaccination efforts and build financial recovery for Denver residents, the city said.

"The pandemic delivered a blow to our community worse than any experienced since the Great Depression," Mayor Michael Hancock said in a statement.

"These American Rescue Plan funds will help to deliver on a once-in-a-generation opportunity to shape a sustainable, equitable recovery for our city. We have a strong recovery plan and thankfully we also now have a partner at the federal level willing to put resources toward building back in a way that is equitable and, with local efforts, more sustainable,” the mayor said.

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 U.S. Department of the Treasury.

“We expect to receive the first allotment of dollars from the U.S. Treasury in the coming days and will be combining this relief with planned local investments to support our recovery,” said Brendan Hanlon, chief financial officer for the City and County of Denver.

“The magnitude of these investments will be felt for generations to come, so we look forward to launching a round of community and City Council engagement in mid-May and to deploying the first round of funds this summer.”

Local governments will receive funds in two tranches — half of Denver's funding will be provided this month, and rest will be provided in a year, officials said. The city has begun to review the guidance provided by the U.S. Treasury on allowable uses for the funding, and the Denver government plans to work with the community and City Council this month to identify priorities for deploying the funding.

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"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 U.S. Treasury Secretary Janet Yellen in a statement.

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

Patch Editor Jenna Fisher contributed to this report.