On American Rescue Plan’s Second Anniversary, Treasury Releases New Data on Act’s Historic Investments in Economic Growth
March 14, 2023 / Source: Treasury
Two years in, ARP has delivered over 10.3 million payments to renters in need, provided direct aid to more than 30,000 state and local governments, funded projects that will connect over 1.4 million families and businesses to high-speed internet, and launched programs that will aid up to 100,000 small businesses
WASHINGTON – Today, to mark the second anniversary of the American Rescue Plan (ARP), the U.S Department of the Treasury released a report with new data illustrating the extent to which this funding supported both immediate pandemic recovery and long-term economic growth. By stabilizing our economy and tackling longstanding challenges, the ARP catalyzed investments in community development that will extend well beyond the deployment of federal resources, and laid the foundation for other historic investments in our nation’s economic future, such as the Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act.
Following enactment of the American Rescue Plan in March of 2021, the Treasury Department oversaw an historic and unprecedented provision of federal assistance to struggling Americans, including delivering more than 150 million Economic Impact Payments within the first few weeks following the American Rescue Plan’s passage; helping launch a national infrastructure to provide emergency rental assistance and prevent evictions across the country; issuing the first ever monthly payments of the Child Tax Credit which supported tens of millions of families; and rapidly distributing unprecedented Fiscal Recovery Fund resources directly to communities to help local leaders avoid cuts, address local needs, and support rapid, resilient, and equitable recovery.
In two years, the American Rescue Plan:
Delivered direct and flexible aid to over 30,000 state, local, Tribal, and territorial governments
- Governments have used State and Local Fiscal Recovery Funds (SLFRF) not only to prevent cuts in government services and respond to the immediate health and economic consequences of the pandemic, but also to make much-needed investments to strengthen their economies and their communities over the long-run.
- To date, communities across the country have budgeted nearly $12 billion for more than 5,300 projects addressing public health needs; $15.9 billion for more than 2,100 projects to meet housing needs, including over $5.4 billion committed to affordable housing development and preservation; nearly $11 billion for more than 3,500 workforce development projects; $4.4 billion for over 1,100 small business development projects; and $24.3 billion for over 7,000 critical infrastructure projects in broadband, water, and sewer.
- Over 99% of the $350 billion in SLFRF funds have been delivered into the hands of nearly every state, local, Tribal, and territorial government in the country and, according to the National Association of State Budget Officers, states have budgeted more than 90% of the funds they have received.
Funded projects that will connect over 1.4 million families and businesses to affordable, high-speed internet and help close the digital divide
- Through ARP’s Capital Projects Fund (CPF), Treasury has approved over $5 billion in awards for affordable, high-speed internet infrastructure projects that will deliver reliable broadband access to over 1.4 million currently underserved homes and businesses in 34 states. An additional $38.5 million in CPF awards have gone to 231 Tribal governments.
- In addition to the $10 billion provided by the CPF, governments have reported budgeting more than$7 billion in SLFRF funds towards broadband. Together, these ARP funds are working in tandem with the Bipartisan Infrastructure Law to close the digital divide – deploying high-speed internet to those without access and lowering costs for those who cannot afford it.
Built a robust housing safety net that prevented evictions and foreclosures and kept families in their homes
- The Emergency Rental Assistance (ERA) program – expanded and extended by the ARP – has made over 10.3 million payments to families at risk of eviction. Resources have also been used to build a robust eviction prevention infrastructure in communities across the country. Princeton’s Eviction Lab found that in 2021 alone, the ERA program, in conjunction with aforementioned SLFRF funding and other Administration policies, helped to prevent 1.36 million eviction cases.
- Research has found that ERA funds have gone to renters who were most in need – extremely low-income renters received close to two-thirds of ERA assistance, women received nearly 70 percent, and Black renters received almost half.
- More than 230,000 families at risk of losing their homes received assistance through the Homeowner Assistance Fund (HAF) program, working alongside other Administration measures to keep foreclosure rates 30% below pre-pandemic levels.
Launched small business assistance programs that will aid up to 100,000 small businesses
- The ARP reauthorized and funded the State Small Business Credit Initiative (SSBCI), providing $10 billion to state, local, Tribal, and territorial governments to expand access to capital and invest in job-creating opportunities, with a focus in underserved communities.
- Treasury has approved plans for SSBCI programs in 48 states and three territories that are designed to catalyze up to $10 of private investment for every $1 of SSBCI funding, resulting in tens of billions of dollars in new small business financing and support for up to 100,000 small businesses over the next decade.
- SSBCI investments are directly contributing to the small business boom by expanding access to capital and providing entrepreneurs the resources they need to succeed. In January, the Census Bureau released data which showed that over the last two years Americans have applied to start 10.5 million new businesses, making 2021 and 2022 the strongest two years on record for new business applications.
Delivered historic tax relief for families that helped lower child poverty by 46%
- Census Bureau data shows that ARP’s expanded Child Tax Credit was the leading driver behind a 46% decline in child poverty in 2021— cutting the annual child poverty rate to its lowest-ever recorded level including record lows in Black, Hispanic, Native American, Asian, and white child poverty.
- Lifting restrictions that prevented families with fewer than three age eligible children from receiving the Child Tax Credit in Puerto Rico led to 200,000 more families in the archipelago receiving the credit when they filed taxes in 2022 compared to a year earlier.
Delivered the largest single infusion of federal funding support to Tribal nations in U.S. history for pandemic recovery and economic development
- The ARP included over $30 billion for Tribal governments, including $20 billion in State and Local Fiscal Recovery Funds – the largest single infusion of federal funding into Indian Country in U.S. history.
- To date, Tribal governments have planned or begun implementing over 3,000 projects and services with SLFRF resources to generate new economic opportunities and improving health, safety, and quality of life for over 2.6 million Tribal citizens.