To strengthen the common good: Six principles for allocating Alabama’s ARPA funding
The COVID-19 crisis has created enormous new challenges for Alabama, while shining a harsh light on long-neglected ones. To strengthen and expedite recovery, the American Rescue Plan Act (ARPA), passed by Congress in March 2021, is pumping $4 billion into Alabama’s economy through 2024. New funding at this scale can be transformative for our state, but only if we take a transformative approach to how we spend it.
2023 Update:
ARPA funding presents a powerful opportunity for Alabama. For the first time in many years, Alabama has more than enough revenue to maintain its bare-bones public services. That means instead of scrambling to avoid cuts, the legislative focus can be on strengthening investments in our state’s future.
Lawmakers entered a special session in March to allocate Alabama’s remaining $1 billion of ARPA funds. Alabama Arise will keep up the drumbeat for Alabama to use that money to fuel lasting change across our state.
Below is an update from the beginning of the legislative session on plans for the remaining ARPA funds.
On March 16, Gov. Kay Ivey signed HB 1 to end the special session she called to distribute the remaining federal funds that Alabama received under the American Rescue Plan Act (ARPA). This act provided states with federal funding to help cover losses and expenses incurred because of the COVID-19 pandemic. Lawmakers previously distributed the majority of the funds, leaving $1.06 billion to be allocated in this year’s special session.
Read more on our blog: Alabama lawmakers allocated the state’s final $1 billion of ARPA funds. What comes next?
2022 Update:
In a January 2022 blog post, we detailed six ways Alabama should use ARPA funds to build a better, more inclusive future. Read more here.
Later in January 2022, Arise executive director Robyn Hyden testified about our top ARPA priorities to members of the House and Senate’s General Fund budget committees. She recommended investments in public health, affordable housing, public transportation and technology improvements. Read her full testimony here.
2021-22 Special Sessions:
The Legislature allocated $480 million of ARPA funding to prison construction and health care during two special sessions in 2021. Lawmakers allocated another $772 million of ARPA money during another special session in January 2022. That money will fund a range of services, including hospitals, nursing homes, broadband expansion, and water and sewer improvements.
ARPA 101:
In a June 2022 blog post titled “ARPA 101: How the American Rescue Plan Act can build a more equitable Alabama,” Arise’s Rebecca Howard detailed what has happened so far with ARPA funds and how remaining funds can be used on initiatives such as affordable housing, public transportation and food security.
Groups urge Ivey to drive transformative change with COVID-19 relief funds
Alabama’s likely voters overwhelmingly support using federal COVID-19 relief funds to increase funding for mental health and rural hospitals, according to an Alabama Arise poll released in January 2022. Sizable majorities also approved of other potential uses of ARPA money to improve living conditions for children and families. Those proposals include expanding child care, establishing a state child tax credit and investing in affordable housing and public transportation. Read the full poll results here.
The State of Working Alabama
In The State of Working Alabama 2021, Alabama Arise explored COVID-19’s significant and negative impacts on the state’s workforce. We also looked ahead to outline a state and federal policy agenda for repairing the damage – not by repeating the policy mistakes of the past, but by charting a new path toward a more equitable economy marked by broadly shared prosperity.
Tell us about the priorities in your community!
Additional ARPA resources
- Alabama Legislative Services Agency: Federal funds update, Jan. 20, 2022 (opens as PDF)
- Alabama School Readiness Alliance: Webinar on utilizing American Rescue Plan funding to accelerate early learning
- Alabama State Board of Education: State Plan for the American Rescue Plan Elementary and Secondary School Emergency Relief Fund
- Center on Budget and Policy Priorities: American Rescue Plan Act will help millions and bolster the economy
- Pandemic Response Accountability Committee: Federal oversight of COVID-19 relief spending and programs
- Southern Economic Advancement Project: The ARP toolkit
- Southern Economic Advancement Project: ARPA Spending Tracker
- U.S. Department of Treasury: Guidance on Coronavirus State and Local Recovery Funds
- A+ Education Partnership: COVID School Spending Tracker