How Framingham Can Use Its $28 Million Federal Stimulus Payment

FRAMINGHAM, MA — Many Framingham residents are waiting on new $1,400 stimulus payments from the federal government. Meanwhile, the city of Framingham is waiting on a much bigger stimulus payment: about $28 million.

The American Rescue Plan Act (ARPA) signed by President Joe Biden on March 11 provides billions in payments to local governments. Framingham will get a $13.5 million direct payment, plus an estimated $14.4 million meant for Middlesex County — since there's no real county government, the county's payment is being divided among each community in it.

So, what can Framingham spend all that money on?

Chief Financial Officer Mary Ellen Kelly said Tuesday ARPA specifies ways to spend the money: replacing revenue lost due to the pandemic; restoring municipal services cut during the pandemic; funding coronavirus-related costs, like testing and supplies; supporting residents and businesses hurt by the pandemic; and funding upgrades to water, sewer and internet infrastructure (Kelly said the city is planning to increase the number of mobile internet hot spots across the city).

One thing Framingham will definitely use the money on, Kelly said: restoring money spent clearing a deficit in the water and sewer enterprise funds. Framingham is planning to increase water and sewer rates in the next fiscal year, but the stimulus money could help the city offset a possible 12 percent hike in July.

Framingham will get half of the money around mid-May, allowing city officials to spend it in the fiscal 2022 budget year, which begins July 1. The other half of the money will come in May 2022, and so will likely be used in fiscal 2023. Framingham has until the end of December 2024 to spend the money.

"This allows us an opportunity to right the ship, so to speak," Mayor Yvonne Spicer said Tuesday during a community chat.

One thing Framingham definitely can't spend the money on: reducing taxes. That's specifically forbidden in the law, Kelly said. The city also can't put stimulus money toward pensions.