American Rescue Plan Act (ARPA)

American Rescue Plan Act

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) expects to receive a total of $21,944,605 in Rescue Plan funding over the next two years. The City received the first round of funding in June, equaling nearly $11 million.

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 first round of funding in FY 2021-22 that allocates Rescue Plan funding for the following purposes:

Business Support

Total Business Support:$6,500,000


Government Support

Revenue Loss and COVID-19 Expenses

  • City of Elk Grove: $1.5M
  • Cosumnes Community Services District: $1.2M

Total Government Support:$2,700,000


Disadvantaged Community Support

  • Workforce Development/Job Training: $1.25M
  • Flexible Homeless Solutions: $500K

Total Disadvantaged Community Support:$1,750,000


What's Next?

A second payment from the federal government of nearly an equal amount is expected to come in June 2022. The Council previously provided direction to staff on the year 2 expenditure plan based on community input. The City Council is expected to formally approve the year 2 expenditure plan in February 2022, which would then be incorporated into the fiscal year 2022-23 City budget.