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Impact of American Rescue Plan Act on State and Local Governments

March 18, 2021

On March 11, 2021, President Joe Biden signed the American Rescue Plan Act of 2021 ("ARPA"), which contains $1.9 trillion in overall national spending to support relief and economic recovery efforts. ARPA provides a total of $350 billion in assistance to states, counties, municipalities, territories and tribal governments to cover expenses, make up for lost revenue and ease the overall economic impact from the COVID-19 pandemic.

The Basics

Timing

Use of Funds

Michigan will receive a total of $10.6 billion in state and local relief, with $6.6 to be distributed to the state government and $4 billion allocated to local governments within the state. Illinois will receive $13 billion total, with $7.5 billion going to the state government and $5.5 billion allocated to local governments.

Please contact the authors or your Miller Canfield attorney with additional questions.

This information is based on facts and guidance available at the time of publication and may be subject to change.