How Much Woodbury Will Get From $350B American Rescue Plan

WOODBURY, MN— 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.

Woodbury is set to receive $6,012,584 and is among 21 Minnesota municipalities allocated financial support through the support program.

The city hasn't yet decided what to do with the funds.

"We appreciate the support and are eager to learn more about our share of the funds as the preliminary guidance from the U.S. Department of the Treasury was just released," Woodbury's City Administrator Clint Gridley said in a statement. "Woodbury has not taken any actions or made any decisions about how it will allocate these dollars. We expect there will be a process to identify rules and regulations set forth by federal and state government, and we will keep the public informed as we move forward."

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.

"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.

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

Jenna Fisher from MA Patch contributed to this report.