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ARPA Background

The American Rescue Plan Act (ARPA) is a comprehensive economic stimulus package passed by the United States Congress in March 2021 in response to the COVID-19 pandemic. The package includes measures to provide financial relief to individuals, families, businesses, and local governments affected by the pandemic. The total cost of the package is estimated to be $1.9 trillion, making it one of the largest stimulus packages in U.S. history. Information about ARPA can be found on the U.S. Department of the Treasury’s Website.


The American Rescue Plan (ARP) provides funding to state, local, tribal, and territorial governments, as well as eligible private nonprofit organizations, to respond to and recover from the impacts of the COVID-19 pandemic. The ARP funds have broad allowable uses, including:

  • Public health expenditures related to COVID-19, such as vaccination programs, testing, and contact tracing.

  • Addressing negative economic impacts caused by COVID-19, such as assistance to households, small businesses, and impacted industries.

  • Providing premium pay to essential workers who have borne the greatest health risks during the pandemic.

  • Funding for infrastructure projects to improve public health, including water, sewer, and broadband.

  • Mitigating the impacts of COVID-19 on education, including addressing learning loss, and providing support for schools and students.

  • Addressing housing insecurity and homelessness caused by the pandemic.

  • Providing support for communities disproportionately impacted by the pandemic, including low-income households, communities of color, and rural communities.


It's worth noting that there are specific guidelines and regulations around how the ARP funds can be used, and these can vary depending on the funding recipient and the specific use case.

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