Communities Continue to Build a Strong Economy By Deploying State and Local Fiscal Recovery Funds: January 2023 Reporting Data Analysis
Summary
A Treasury analysis of State and Local Fiscal Recovery Funds (SLFRF) reporting data, January 2023. It states that over 99% of the $350 billion in Fiscal Recovery Funds has been delivered and that the number of projects among quarterly reporters grew by nearly 20% from September 30, 2022 to December 31, 2022. It reports budgeted amounts including almost $16 billion for 2,100 housing projects, nearly $11 billion for supporting workers, over $24 billion for over 7,500 water and broadband projects and almost $4.5 billion for small business assistance. According to the analysis, recipients have reported $274 billion in revenue losses, and over 13,000 governments budgeted nearly $100 billion for over 28,000 revenue replacement projects. Tables break down reported spending by category.
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Communities Continue to Build a Strong Economy By Deploying State and Local Fiscal
Recovery Funds
January 2023 Reporting Data Analysis
The State and Local Fiscal Recovery Funds (SLFRF) established by President Biden’s American
Rescue Plan Act continue to play a crucial role in allowing state, local, Tribal, and territorial
governments to stabilize their budgets, respond to the pandemic, and invest in their communities.
Governments have used SLFRF funds 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.
Over 99% of the $350 billion in Fiscal Recovery Funds have been delivered into the hands of
nearly every state, local, Tribal, and territorial government in the country. And previous analysis
by the National Association of State Budget Officers has found that state governments have
collectively allocated more than 90% of their fiscal recovery funds as of last summer.
Governments continue to spend funds on existing projects and identify new projects to meet the
emerging needs in their communities. Among quarterly reporters,1 the number of projects grew
by nearly 20% from September 30, 2022 to December 31, 2022. There was particularly notable
growth in a number of areas, including an increase in funds budgeted by SLFRF quarterly
reporters for housing (an 11% increase quarter over quarter), childcare and early learning (a 16%
increase), and clean water infrastructure (a 16% increase). With these increases, recipients have
now dedicated significant funds in the following areas:
• Housing: Almost $16 billion for 2,100 projects by nearly 800 governments
• Supporting workers: Nearly $11 billion for over 3,500 projects by almost 2,000
governments
• Water and broadband infrastructure: Over $24 billion for over 7,500 projects by over
2,600 governments
• Small business assistance: Almost $4.5 billion for over 1,100 projects by more than 500
governments
The latest SLFRF reporting data also emphasizes the critical role that SLFRF resources have
played in helping avoid a repeat of the Great Recession when state and local government budgets
were a drag on the overall economy for 14 quarters of the recovery.2 To that end, SLFRF
1
States, territories, and metro cities and counties with a population over 250,000 or an allocation over $10 million,
non-entitlement units of local government allocated more than $10 million, and Tribal governments allocated over
$30 million.
2
https://home.treasury.gov/news/press-releases/jy1271
SLFRF January 2023 Reporting Data Analysis 1
recipients have reported to Treasury $274 billion in revenue losses resulting from the pandemic
to date. This includes over 13,000 participating governments reporting that they budgeted nearly
$100 billion for over 28,000 revenue replacement projects to provide fiscal stability. It is worth
noting that many recipients who report revenue loss may choose to report funds in other eligible
use categories instead of the revenue loss expenditure category.
These figures demonstrate that without the American Rescue Plan, there would have been
devastating cuts to public services and state, territorial, Tribal, and local governments would
likely still be struggling with restoring operations to pre-pandemic levels — rather than
implementing new investments that will shape the future of their economies. The strong recovery
of the past two years has allowed government at all levels to plan for future economic growth,
rather than scrambling to contain a pandemic without adequate resources. To that end,
governments have been using SLFRF to boost economic growth in their communities, advance
equity, and increase affordability for households.
Building on previously released reporting data, Treasury continues to regularly release SLFRF
reporting data received from recipients3; data reported through December 31, 2022 can be
accessed through Treasury’s SLFRF data dashboard. The following examples4 provide a
snapshot of the types of projects that recipients are implementing across key categories using
SLFRF funds.5
Investing in Housing Affordability
Expanding access to affordable housing continues to be a top priority for Treasury and for the
Biden-Harris administration. Following on efforts over the summer of 2022 to encourage
jurisdictions to consider using SLFRF for affordable housing, which included new flexibilities
and tools for housing affordability investments, spending continues to accelerate in this area.
From September 30 to December 31, 2022, funds budgeted by governments for housing
3
Tribally reported information is included in aggregate statistics about the program (e.g., the total number of
governments using funds for a specific eligible use, total projects reported, etc.); however due to privacy
considerations, Treasury does not release complete information on all Tribal projects.
4
The examples included throughout this post are based on recipient reports, and their inclusion in this document
does not constitute an explicit approval of these projects by Treasury.
5
This analysis includes quarterly Project and Expenditure reporting covering the period ending December 31, 2022
from the largest SLFRF recipients: states, territories, and metro cities and counties with a population over 250,000
or an allocation over $10 million, non-entitlement units of local government allocated more than $10 million, and
Tribal governments allocated over $30 million. In addition, to provide the full picture of SLFRF investments, the
figures highlighted in this analysis include previously reported data from smaller SLFRF recipients who report their
spending activity annually in April. These annual reporters include metro cities and counties with populations less
than 250,000 and an allocation less than $10 million, Tribal governments with an allocation less than $30 million,
and non-entitlement units of local government allocated less than $10 million. These recipients are required to file
Project and Expenditure Reports annually by April 30. In 2022, these Project and Expenditure reports covered the
period from March 3, 2021 to March 31, 2022.
SLFRF January 2023 Reporting Data Analysis 2
investments grew 11% to nearly $16 billion. This is a 29% increase in funds dedicated to
housing since December 31, 2021 while the number of individual projects grew 57% in this
period to more than 2,100. For example, since the updated housing guidance was issued in July
2022, the State of Rhode Island reported that the state has budgeted $75 million to complement
other state and federal resources to finance the production and preservation of housing affordable
to households earning less than 80% of AMI. Other examples of projects in this area include:
• The State of Idaho has budgeted $50 million for gap financing to eligible low- and
moderate-income-targeted multifamily housing developments and down payment/closing
cost assistance for low- and moderate-income homebuyers. This will ensure that those
who were the most economically impacted by the COVID-19 pandemic and the
affordable housing crisis have access to long-term, high-quality, affordable housing.
• Mobile, Alabama has budgeted more than $4 million to work with housing developers
and the local Public Housing Authority to revitalize neighborhoods with affordable
housing for unhoused persons and first-time homebuyers.
• Pensacola, Florida has allocated $3 million to improve access to stable, affordable
housing for unhoused individuals as well as programs to assist the unhoused.
• Rochester, New York is dedicating over $13 million focused on creating
homeownership opportunities for low-income residents in neighborhoods that have faced
challenges even before the COVID-19 pandemic. This includes constructing new single-
family houses on previously vacant city-owned land in targeted neighborhoods and
incorporating sustainability and energy efficiency in construction.
• Tarrant County, Texas has budgeted more than $33 million into expanding permanent
supportive housing as the COVID-19 pandemic highlighted the need for additional
housing to serve its most vulnerable populations. The project includes grant awards to
nonprofits that focus on housing and was facilitated through an application process run
by the Tarrant County Housing Finance Corporation.
• The Knik Tribe will build 32 affordable homes for the elder population. The homes
incorporate accessibility floorplans and important age-in-place features that will support
independence.
Supporting Workers
Another key area of investment for SLFRF funds has been projects focused to support and
expand the workforce in response to the negative economic impacts of the pandemic on
communities. As of December 31, 2022, SLFRF recipients have budgeted over $10.9 billion in
SLFRF funds for more than 3,500 workforce projects. Key areas of workforce investment
include helping impacted workers enter in-demand careers, with a particular focus on assisting
people that have barriers to employment as well as preparing workers for industries of the future
such as those catalyzed by the Bipartisan Infrastructure Law, the CHIPS and Science Act, and
SLFRF January 2023 Reporting Data Analysis 3
Inflation Reduction Act. A key support in this area is childcare, which grows the size of the
workforce by providing parents with the ability to more work in greater numbers.
Recognizing the importance of childcare, especially as labor markets remain tight thanks to the
nation’s growing economy, governments have also made increasingly large investments in this
area in recent months. For example, New America found that through September 30, 2022 more
than $2.8 billion of SLFRF resources have been dedicated to supporting the care economy. From
September 30 to December 31, 2022, spending by quarterly reporters alone on childcare and
early learning increased by 15%, reaching nearly $900 million in total. This significant increase
includes projects such as:
• Allegheny County, Pennsylvania budgeted $20 million to increase support for high-
quality childcare centers and other out of school time opportunities, including during the
non-traditional hours of evenings and weekends.
• The State of Colorado budgeted $16 million to expand an existing grant program that
increases access and availability of licensed childcare throughout Colorado by funding
facility upgrades and expansions to grow capacity at existing licensed home-based
providers and/or childcare centers. Additionally, the Colorado Department of Early
Childhood is providing technical assistance to childcare providers.
• The State of Connecticut budgeted $30 million to allow state funded childcare programs
to stay open and available for low- and moderate-income families and children.
• The State of Iowa budgeted over $30 million to encourage and enable businesses and
employer consortiums to build or expand on-site childcare centers.
• The State of New Jersey budgeted nearly $55 million to implement a pilot program to
improve childcare facilities.
In addition, governments are also continuing to make robust investments in more traditional
workforce programs, including:
• Detroit, Michigan budgeted nearly $59 million for Detroiters for Skills for Life, a
training and career readiness program for residents that continue to face economic
hardships exacerbated by the COVID-19 pandemic. The program provides employment
and skill and career-building activities and assists in removing barriers to employment by
offering disconnected workers on-ramps so that they may earn income while building
critical skills to improve long-term employment and job retention prospects.
• The Lovelock Paiute Tribe is assisting working parents with long-term solutions for
childcare. The pandemic reduced childcare in an area that already had an ongoing lack of
options. The Tribe is constructing both a daycare and a Head Start to assist families and
provide comprehensive early childhood education.
• The State of Maine budgeted $1.5 million for the Maine Apprenticeship Program that is
specifically focused on building high quality pre-apprenticeship and apprenticeship
programs for the clean energy sector in partnership with businesses, industry
SLFRF January 2023 Reporting Data Analysis 4
associations, unions, education and training providers, and community-based
organizations.
• Pima County, Arizona budgeted over $5 million for a ‘Micro-Pathways’ program to
provide participants with financial support to access short-term programs that lead
directly into in-demand jobs with family-sustaining wages. The county will also support
apprenticeships and other workforce programs focused on high growth career fields.
• Roanoke, Virginia obligated $3 million to the Star City Works program devoted to
identifying the needs of employers in high-growth, high-potential sectors and to filling
any gaps that may exist in the local workforce. The program includes training, work-
based learning opportunities, and wrap-around supportive services (transportation,
childcare, food assistance, utility/mortgage assistance).
• Salt Lake City, Utah obligated $1.5 million to cover payroll and benefits to hire
positions that were unfilled due to the negative economic impact of the pandemic on
public sector employment.
• Travis County, Texas budgeted more than $6 million for a workforce development
program targeting the pandemic’s effect on local industries by providing training aligned
with industries in the community workforce development plan. The program provides
supportive services including childcare, transportation assistance, laptops and mobile
hotspots, educational assistance stipends, work-related payments, and subsidized
employment while in work-based learning or apprenticeship programs.
Making Transformative Investments in Key Infrastructure
SLFRF is allowing state, local, Tribal, and territorial governments to make key investments in
infrastructure projects that respond to needs that were highlighted by the pandemic and that will
support future economic growth. Overall, nearly 2,700 governments have budgeted more than
$24 billion for almost 7,500 critical infrastructure projects that support expanded access to high-
speed internet and clean water. SLFRF is helping states and localities to further supercharge the
historic federal investments in infrastructure delivered by the Biden-Harris Administration
through the Bipartisan Infrastructure Law and complementing the American Rescue Plan
investment in expanded affordable highspeed internet access through Treasury’s Capital Projects
Fund. Some specific project examples include:
• The State of Alabama budgeted $51 million to develop a statewide middle-mile fiber
network that will support, catalyze, and facilitate future last-mile projects.
• American Samoa budgeted $10 million for broadband development as the pandemic
made clear that remote work, distance learning, and telehealth are essential services. The
territory will work with local internet service providers to support the delivery of internet
service that reliably meets or exceeds symmetrical upload and download speeds of 100
mbps.
SLFRF January 2023 Reporting Data Analysis 5
• Carroll County, Maryland budgeted $15 million to make investments in broadband
infrastructure in response to COVID-19 when households and businesses lacking reliable
high-speed service were at a significant disadvantage in areas such as educational,
economic, and health opportunities. Carroll County will increase access to the 12% of
Carroll households and businesses currently unserved by a high-speed connection by
providing 100/100 mbps service that will include an option for low-income customers.
• Janesville, Wisconsin budgeted over $2 million in order to improve drinking water
quality by replacing publicly owned lead pipes.
• Rankin County, Mississippi budgeted $26 million for 45 projects that are improving
water quality protection, floodplain management, environmental restoration, and
wetlands restoration.
Key Investments through December 31, 2022 for State, Local, Territorial, and Tribal Governments*
Number of Number of
Governments Projects
Reported Funds
Pursuing Reported
Budgeted
Category
Housing: Emergency Aid, Affordable Housing, $15.9 billion 778 2,118
Homelessness
Infrastructure: Water, Sewer, and Broadband $24.3 billion 2,661 7,490
COVID-19 Public Health Response** $11.8 billion 1,500 5,310
Worker Support: Unemployment Aid, Job Training, $10.9 billion 1,861 3,512
Public Sector Workforce, Essential Worker Premium Pay
Small Business Assistance $4.4 billion 560 1,109
Childcare and Early Learning $878.9 million 209 337
* This chart includes all the most recent project and expenditure reporting received by Treasury
for all recipients. Specifically, it includes data reported by quarterly reporters (states, territories,
and metro cities and counties with a population over 250,000 or an allocation over $10 million;
Tribal governments with an allocation over $30 million; and non-entitlement units of local
government allocated more than $10 million) through December 31, 2022 and data from annual
reporters (metro cities, counties, and non-entitlement units of local with populations less than
250,000 and an allocation less than $10 million, Tribal governments with an allocation less than
$30 million) through March 31, 2022.
SLFRF January 2023 Reporting Data Analysis 6
**Includes vaccinations, testing, contact tracing, PPE, prevention in congregate facilities,
medical expenses, and other public health measures.
SLFRF January 2023 Reporting Data Analysis 7
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