On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (Rescue Plan) into law. The $1.9 trillion package is intended to combat the COVID-19 pandemic, including public health and economic impacts.
Funding Supporting Local Recovery
In addition to a number of relief programs for individuals and businesses, the Rescue Plan provides $350 billion dollars in emergency funding for state, local, territorial, and tribal governments to address the impact of the pandemic on government services. This is the first and only direct allocation provided to local governments to address the impact on government services, including revenue loss.
The City of Elk Grove (City) received a total of $21,944,605 in Rescue Plan funding.
The City sought input from the community on how to prioritize expenditures using Rescue Plan funds. Based on the results of community surveys, feedback from the City's COVID-19 Economic Recovery Task Force, and input from City departments and the Cosumnes Community Services District, the Elk Grove City Council adopted a spending plan for the funding that allocates Rescue Plan funding for the following purposes:
- Small Business Grants: $4M
- Non-Profit Grants: $2.5M
- Business Broadband: $1.3M
- Elk Grove Water District (Old Town Water Line Replacement): $436,000
- Southeast Industrial Area Storm Drain Improvements: $3.8M
Total Business Support:$12,000,000
Revenue Loss and COVID-19 Expenses
- City of Elk Grove: $4.7M
- Cosumnes Community Services District: $1.2M
Total Government Support:$5,900,000
Disadvantaged Community Support
- Workforce Development/Job Training: $2M
- Flexible Homeless Solutions: $2M
Total Disadvantaged Community Support:$4,000,000