Cooper Lays Out Pitch For NC Federal Stimulus Spending

NORTH CAROLINA — North Carolina's $5.7 billion slice of Federal American Rescue Plan stimulus funding is a "once-in-a-generation opportunity" for the state, Gov. Roy Cooper said Wednesday, outlining a comprehensive spending proposal to use the cash infusion to target areas hardest hit by the pandemic.

"These investments must be smart, equitable and effective. We are prioritizing assisting families most impacted by the pandemic, upgrading our infrastructure, preparing our workforce and promoting business development and innovation," Cooper said.

The $1.9 trillion American Rescue Plan stimulus package was signed into law by President Joe Biden in March, and last week, the U.S. Treasury released guidance for allowable uses for the money. States must obligate the funding by Dec. 31, 2024, and must spend it by the end of 2026.

The news comes as financial strains continue in North Carolina. According to state officials, entertainment spending is down 30 percent, nearly 60 percent of residents lack access to affordable high-speed internet and requests for housing assistance are up 36 percent.

Cooper's vision for spending the federal relief includes a $1.2 billion earmark to spur massive high-speed internet rollout aimed at closing the digital divide throughout the state, scholarships and job training, as well as money for affordable housing and food banks. There is also money to repair aging water systems, direct financial assistance for businesses that lost revenue, and money for local governments.

In the plan is also a $45 million nod to one of the state's largest homegrown industries: motorsports. The money would be spent to rehabilitate aging and historical NASCAR tracks, such as North Wilkesboro Speedway and The Rock in Rockingham, North Carolina, along with $5 million to develop and market a new "Motorsports and Moonshine Heritage Trail."

Among the more ambitious details included in the proposal is a call to spend more than 20 percent of the federal aid on high-speed internet.

"More than a million household in North Carolina lack affordable, reliable access to the internet," he said, adding that the plan would aim to connect access every home with a school-aged child. "Our goal is that by 2025, North Carolina will be a national leader, ranking in the top 5 states for high-speed internet adoption," Cooper said.

North Carolina's $5.7 billion portion of stimulus funding includes $5.44 billion in state fiscal relief and nearly $300 million for critical capital projects, State Budget Director Charlie Perusse said.

Cooper's American Rescue Plan Budget proposal includes:

• $575 million for expanding affordable housing, including $500 million to develop and rehabilitate 3,000 rental and 3,500 housing units and $75 million in down payment assistance for first-time home buyers. This is projected to assist up to 9,000 homebuyers in the state.
• $250 million in grants for low- and middle-income families with children hardest hit. Under the plan families or individuals would receive grants up to $500. This is projected to assist about 660,000 families in the state.
• $64 million to enhance food security efforts, including $28 million to bolster small farms and food banks and $4 million to reduce college hunger.
• $65 million to support vulnerable families, including $28 million to support families at risk of homelessness with a focus on seniors, disabled and kids transitioning from foster care and $20 million for domestic violence and sexual assault victims.
• $140 million for sound basic education, including $75 million to hire reading literacy coaches.
• $160 million for early childhood development, including $102 million to improve access to pre-K, and $58 million for home-based early literary programs.
• $1.2 billion to close the digital divide, including $600 million for high-speed internet infrastructure.
• $800 million for water, sewer and stormwater projects including $440 million for distressed and at-risk systems.
• $160 million for lead and asbestos remediation in schools and child care facilities
• $175 million for rural downtown transformation grants that would support more than 100 downtown districts
• $350 million for NC Guarantee Scholarships, eligible to all full and part-time students and UNC and community colleges. This program would provide scholarships of at least $6,000 and is expected to assist at least 72,000 students.
• $270 million for Recovery Scholarships for the state's poorest students attending college full or part-time.
• $95 million for Recovery Scholarships at Independent Colleges, which would provide scholarships of an additional $1,750 in need-based scholarships.
• $60 million for summer accelerator grants to assist students with remedial support to stay on track to graduate
• $350 million in hospitality industry assistance, including $300 million earmarked for the state's 12,000 bars, restaurants and hotels and $50 million for small business recovery.
• $50 million for economic site development to fund critical infrastructure that would attract new businesses to the state.
• $45 million to expand motorsports and outdoor event opportunity, including $30 million for repairs at The Rock, North Wilkesboro Speedway and Charlotte Motor Speedway; $10 million for small racing venues and $5 million to develop, connect and market a new Moonshine and Motorsports Heritage Trail.

"Most of the recommendations that we have are for one-time investment, like infrastructure, water and sewer," Cooper said. "But we have five years in which to invest this money, over a five-year period of time. We're trying to emerge from the pandemic, so we need a shot in the arm, particularly in the area of education and workforce training."

More detail about Cooper's American Rescue Plan Budget proposal may be found here.

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