In mid-September, Tenax wrote about the American Rescue Plan (ARPA) and how it could impact the Commonwealth. The $5.3 billion in funding allocated to Beacon Hill had the potential to dramatically change the Commonwealth’s services and would serve as an indicator of larger priorities for the upcoming session.
Last Friday, the House passed an Act Relative to Immediate COVID-19 Recovery Needs. The initial language , introduced by the House Ways and Means Committee on Monday, included $3.65 billion of ARPA funds in one-time investments across the state. Expanded by amendments to $3.82 billion , the House bill was approved unanimously. The overarching objectives of the legislation are to address disparities created and exacerbated by the pandemic and to improve the ongoing recovery process.
Where is the money being allocated?
The bill allocates most of the funding across four major categories: Economic Development, Health and Human Services, Workforce, and Housing. The two largest expenditures have already been agreed to by Senate counterparts: $500 million to the state’s unemployment trust fund and another $500 million in bonus payments to low-income essential workers who remained on the job, in-person throughout the pandemic.
Below, you’ll find a breakdown of where the money comes from; though the majority is federal, ARPA funding was supplemented with $629 million from the General Fund.
What about the remaining ARPA funds?
The House bill utilizes a total of $3.82 billion to the projects detailed above. This leaves $2.23 billion in ARPA funding for future endeavors, perhaps in response to uncertainty that additional federal aid will materialize. This will be supplemented by $350 million in untouched surplus funds from FY2021.
What are the next steps?
The Senate is expected to put forth a counterproposal shortly. After a short period during which amendments can be filed, the Senate bill will be voted on and – if passed – sent to conference committee for reconciliation. House and Senate leaders have not indicated whether they aim to enter conference or send a final bill to the Governor prior to the November 17 th winter recess.
The post Legislation Update: House Ways and Means ARPA Legislation appeared first on Tenax Strategies.
