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How Governments are Addressing Urgent Needs, Investing in Key Areas, and Making Strategic Investments in their Communities: Insights from State and Local Fiscal Recovery Funds April 2022 Reporting Data

Summary

A Treasury paper presenting insights from State and Local Fiscal Recovery Funds (SLFRF) reporting data for the period ending March 31, 2022, from Project and Expenditure Reports due by April 30, 2022. It reports that the largest metro cities and counties had budgeted 100% of available first tranche funds as of March 31. Through March 31, recipients reported over 2,700 workforce projects, premium pay for more than 900,000 workers and approximately $12.9 billion budgeted for affordable housing. The paper states that broadband projects grew to over $7 billion and that funds reported for water projects nearly doubled from the period ending December 31, 2021. Charts break down spending by category, with a note that figures are not comparable to the January reporting data.

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    How Governments are Addressing Urgent Needs, Investing in Key Areas, and Making
                        Strategic Investments in their Communities:
      Insights from State and Local Fiscal Recovery Funds April 2022 Reporting Data

Building on previous data releases that illustrate how the State and Local Fiscal Recovery Funds
(SLFRF) are being spent by recipients to catalyze a robust economic recovery, Treasury has
continued its commitment to transparency by releasing the latest reported data from recipient
jurisdictions.

Treasury’s review of this latest data reported by recipients for the period ending March 31, 2022
has revealed several important insights and trends:
    • Jurisdictions Are Using Funds to Address Urgent Needs: The largest metro cities and
       counties had cumulatively budgeted 100% of total available funds as of March 31,
       illustrating that these funds have been critical to address deep and immediate needs in
       their communities in response to the pandemic.1
    • Recipients Are Investing In Key Areas Like Affordable Housing, Expanding the
       Workforce, and Public Safety: Building on the trend from previous reporting periods
       and Treasury’s call to action, governments have dedicated SLFRF funds to boost
       economic growth in their communities, advance equity, and increase affordability for
       households through investments in affordable housing, expanding the workforce, and
       public safety. Through March 31, recipient governments reported over 2,700 workforce
       projects, provided more than 900,000 workers with premium pay, budgeted
       approximately $12.9 billion for affordable housing, and invested in community violence
       interventions.
    • Governments Are Making Strategic Investments: Recipients have made strategic
       investments to respond to the pandemic and fund long-term projects that will support
       future economic growth and opportunity through areas such as infrastructure, where
       billions of dollars have been committed amidst increasing investments in this area. For
       example, broadband projects grew to over $7 billion and the total amount of funds
       reported for water projects nearly doubled from the previous reporting period, which
       ended on December 31, 2021.

This new data emphasizes the scale and breadth of the program while demonstrating that
recipients are building on the previously highlighted projects to deliver even more impact to their
communities.

This data includes the Project and Expenditure Reports that were due from all SLFRF recipients
by April 30, 2022 for the period ending March 31, 2022. This reporting period is prior to when
certain recipient governments began receiving their second tranche payments of State and Local
Fiscal Recovery Funds in May 2022. Specifically, this reporting data includes quarterly Project
and Expenditure reporting data from the largest SLFRF recipients: states, territories, and metro
cities and counties with a population over 250,000 or an award over $10 million, and Tribal


1Refers to the total cumulative percent of first tranche funds that have been budgeted by relevant governments as
of March 31, 2022.

U.S. Treasury: Insights from State and Local Fiscal Recovery Funds April 2022 Reporting Data                   1
governments with an award over $30 million. 2 For these governments, the latest quarterly report
includes all project and fiscal information as of March 31, 2022. This reporting data also
includes the first annual Project and Expenditure reports from smaller SLFRF recipients,
including 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.3 For these governments, the reporting period covers March 3, 2021-
March 31, 2022.

Jurisdictions Are Using Funds to Address Urgent Local Needs

As highlighted in previous reporting summaries, local governments have made rapid use of their
funds to address the deep and immediate needs in their communities. In fact, through March 31,
2022, the largest metro cities and counties had cumulatively budgeted 100% of the total amount
of first tranche funds available to them, up from the 83% reported in January (covering the
period through December 31, 2021). 4

This continues to reflect the urgent needs facing local governments throughout the pandemic and
demonstrates how fiscal recovery funds prevented devastating cuts to public services like police,
fire, emergency medical services, and education. In particular, a national survey of mayors
before the passage of the American Rescue Plan Act found that 70 percent anticipated making
dramatic service cuts. As such, a major use of SLFRF for governments of all sizes has been
maintaining and rebuilding crucial public services by replacing revenue lost due to the pandemic:
over 25,000 governments have reported using SFLRF to replace lost revenue.

Without these fiscal recovery funds, many states, cities, counties, territories, and Tribes would
have needed to raise taxes or cut critical services during the pandemic. For example, the latest
reporting illustrates how critical these resources were to respond to the pandemic as public health
projects are one of the most common uses of funds with more than 4,900 projects in areas such
as vaccination, prevention, and testing.

In addition, the latest reporting data also highlights that smaller local governments have quickly
identified how these funds will be spent to meet their communities’ needs. Through March 31,
2022, these small local governments, which were each allocated less than $10 million in fiscal
recovery funds and the large majority of which have populations less than 50,000 residents,
reported to Treasury that they have already collectively obligated approximately three-quarters
of their first tranche funds. This significant use of funds by smaller governments underscores the

2
  Due to privacy considerations, Treasury does not release reporting information from individual Tribal
governments. 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.). All examples of Tribal
government projects included in this document are sourced from publicly available information.
3 All non-entitlement units of local government reported in April 2022 for the reporting period March 3, 2021-

March 31, 2022. In future reporting periods, non-entitlement units of local government with an allocation greater
than $10 million will report quarterly; while non-entitlement units of local government with an allocation less than
$10 million will continue to report annually.
4 Metro cities and counties with populations over 250,000 were required to report adopted budget for each

project.

U.S. Treasury: Insights from State and Local Fiscal Recovery Funds April 2022 Reporting Data                       2
degree to which the SLFRF program was structured to make it easy for these governments with
limited administrative capacity to spend the funds efficiently to meet their local priorities.

States are also making progress in allocating SLFRF funds, though state data may reflect
continued conservatism in reporting information to Treasury. Of note, tracking by the Center on
Budget and Policy Priorities, released in April 2022, found that states and the District of
Columbia had appropriated 80 percent of funds available through March 23, 2022, covering a
time period similar to the reporting period reflected in the release of data submitted to Treasury
in April, and a figure that has likely risen in the meantime as a result of state budget sessions that
took place in spring 2022.

Recipients Are Investing in Key Areas Like Affordable Housing, Expanding the
Workforce, and Public Safety

The Biden-Harris Administration has been focused on catalyzing a recovery from the pandemic
that boosts economic growth in communities across the country; advances equity for
communities of color and other underserved populations; and increases affordability for
households. To advance these Administration-wide goals, Treasury identified three key priority
areas for recipients to direct SLFRF investments: affordable housing, expanding the workforce,
and public safety.

First, investments in affordable housing continue to grow, as recipients have now reported
budgeting $12.9 billion in this area across nearly 1,300 projects. Recipient governments have
focused on improving housing stability and bringing down one of the largest costs that families
face. This includes both developing new housing and also helping homeowners stay in their
homes. In particular, reported obligations as of March 31 for rent, mortgage, and utility
assistance have doubled since January’s reporting data, in line with Treasury’s encouragement to
use SLFRF to finance this assistance.

Building on the figures above, the following provides a few examples of how governments are
using SLFRF as an opportunity to dramatically accelerate development and preservation of
affordable housing by expanding access to safe, quality, affordable homes that are critical to the
well-being of all Americans. 5

     •   Bernalillo County, NM is supporting affordable housing through the development of a
         4.3-acre mixed-use development, comprised of 61 affordable housing units.

     •   Sarasota County, FL is funding the development of 288 units of affordable rental
         housing, consisting of one, two, and three-bedroom units targeted to low-income persons,
         families, families with children, elderly and physically or mentally disabled persons at
         80% area median income or less.




5The 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.

U.S. Treasury: Insights from State and Local Fiscal Recovery Funds April 2022 Reporting Data                       3
     •   South Boston, VA is working with local nonprofits to redevelop a sub-division and
         expand the number of low-cost affordable homes in the town.

     •   The State of Maine is using $50 million to expand long term housing affordability for
         low- and moderate-income families. This includes a homeownership subsidy program
         with purchase price caps and covenants to maintain affordability into the future as well as
         a rental program for households with incomes up to 80% of area median income, which
         requires that the subsidized rental units be made available to low-income renters and that
         most units retain their affordability for at least 45 years.

Second, SLFRF recipients continue to make investments that focus on expanding the
workforce, budgeting approximately $9 billion for projects in this area of worker support. This
focus on workforce is critical in today’s economy and many SLFRF projects are using their
funds to train workers for in-demand careers to help underserved workers reenter the labor
market. Governments across the country are also using recovery funds to bolster their public
workforce by rehiring public workers that educate children, keep communities safe, and
administer programs that were crucial during the pandemic. Furthermore, as of March 31,
governments have reported to Treasury more than $2.4 billion in premium pay, serving more
than 900,000 eligible workers, to further support the workforce.

Childcare and early learning are another key workforce support with a focus on reducing costs
and helping working parents to balance caring for their children and maintaining their jobs. The
amount of funds budgeted in this area by the largest governments grew more than 130% from
January to April reporting.

In total, governments reported more than 2,700 projects focused on workforce, including:

     •   Buffalo, NY has budgeted $9 million for the Neighborhood Improvement Corps to
         provide jobs for individuals who will advance the city’s neighborhood improvement
         efforts. The Corps is intended to be comprised of 50 members and 5 supervisors, with
         hiring preference for low-income residents who live in neighborhoods of color. In
         addition to providing services, Corps members will also be able to enroll in academic and
         enrichment programs. This subsidized work project can act as a vehicle for better
         employment opportunities while simultaneously improving Buffalo’s public spaces.

     •   Riverside, CA is providing scholarships for workforce and job training programs to
         populations who experienced negative economic impacts. These programs, specifically
         focused on agriculture, are designed to increase skills while simultaneously increasing
         food production and building food resiliency.

     •   The State of Montana Department of Labor and Industry is spending $2 million and
         adding 10 qualified full-time Rehabilitation Counselors to serve approximately 1,000
         additional individuals with disabilities with services that lead to employment. This will
         serve the majority of the 1,300 individuals with disabilities currently waiting for such an
         opportunity by funding support staff to offer engagement and assistance.


U.S. Treasury: Insights from State and Local Fiscal Recovery Funds April 2022 Reporting Data           4
     •   Tacoma, WA is funding the Transitional Employment Pathway program, a low-barrier,
         transitional employment approach to move individuals into part-time work that is
         structured and monitored with a focus on barrier reduction. The program provides
         employment navigation, case management, employment opportunities, and temporary
         financial assistance related to employment and housing. Successful participants will
         become fully eligible for other services leading to full-time employment, permanent
         housing, and self-sufficiency.

     •   Travis County, TX budgeted more than $6.5 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. Further, the program
         provides supportive services for participants 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.

Third, to improve public safety, recipients have identified over 300 community violence
intervention projects totaling more than $680 million, a significant increase in the federal
investment in this area on top of the similar amount that the Department of Justice awards
through its programs. These governments have invested in community-based violence
intervention programs and other holistic efforts to prevent and reduce violence such as programs
for youth, which offer work experience and training. Examples of projects in this area include:

     •   Bridgeport, CT budgeted $4.4 million for re-entry job programs to address the negative
         impact of the COVID-19 on formerly incarcerated citizens. Assistance will include
         housing support, medical health services, mental health services, substance abuse
         treatment, conflict mediation, restorative justice, mentorship, financial literacy and debt
         management education, workforce development, job training and placement, and/or
         education services. The program is targeted towards male and female returning residents
         between the age of 17 and 24 years old.

     •   Milwaukee, WI has obligated nearly $5 million for the EARN & LEARN program,
         which is designed to support young people in their transition from adolescence to
         adulthood by providing an opportunity to develop practical workforce skills by providing
         them with authentic work experience with local businesses, nonprofits, and community
         and faith-based organizations.

     •   New York, NY created the Summer Youth Employment Program for over 4,000
         students, prioritizing those who live in public housing and the 33 neighborhoods
         identified by the Taskforce on Racial Inclusion and Equity as being most impacted by
         COVID-19. Participants were matched with local employers, including small businesses,
         nonprofit, education, and public health organizations.

     •   Orlando, FL is using $3 million in response to increased homicides by funding
         Community Violence Intervention initiatives which, when implemented with f idelity,
         have reduced gun violence by 40-70%. With funding from the American Rescue Plan

U.S. Treasury: Insights from State and Local Fiscal Recovery Funds April 2022 Reporting Data       5
         Act, the Families, Parks and Recreation Department and Orlando Police Department will
         collaborate to implement an evidence-based model of Community Violence Intervention.

     •   Washington, DC is using funds to create a Safe Passage program for schools in seven
         priority areas. This program will include stationing a positive, trusted adult presence for
         students as they travel to and from school and school-related activities as well as after-
         school mediation services to resolve and prevent conflicts. This investment seeks to
         reduce youth violence, chronic absenteeism, and truancy, while increasing student and
         family safety during travel to school and school-related activities.

Governments Are Making Strategic Investments
Governments have also used SLFRF to make smart long-term investments that will boost growth
and opportunity for years to come. For example, funds going to water and sewer projects nearly
doubled compared to the previous reporting period to total $9.1 billion budgeted in this area,
underscoring the degree to which these projects can have longer planning timelines but are now
getting underway in earnest. Furthermore, recipients have reported budgeting more than $7
billion for broadband projects through March 31, 2022, which complements the $10 billion
available for broadband and certain other capital projects in Treasury’s Capital Projects Fund, as
part of the first wave of the Administration’s robust broadband build out. Overall, recipients
reported over $16 billion for more than 5,100 infrastructure related projects, including:

     •   Akron, OH has 3,200 active lead water service pipes and the city will establish an
         aggressive lead removal plan. The work will remove old lead service lines and install
         new copper service lines, curb valves, and curb boxes. Full lead service line replacement
         removes the source of corrosion and lead leaching, reducing the likelihood of lead
         exposure for homeowners, especially for children.

     •   Brownsville, TX is spending $19.5 million to improve broadband access as nearly 67%
         of Brownsville households lack access to cable, DSL, or fiber broadband. The City of
         Brownsville has consistently been ranked as the “least connected City” since 2016. This
         project will develop a backbone network of “rings” of fiber optic cable to provide a
         foundation for last mile connectivity and provide resiliency against single fiber cuts or
         other faults.

     •   Dallas, TX allocated $35 million to improve equity across Dallas Water Utilities’ water
         and wastewater systems through the Unserved Areas program. The program identified 47
         occupied areas that did not have access to water and/or wastewater service, with an
         estimated cost of $37.4 million dollars to make these improvements. The goal of the
         program was to complete all improvements within 10 years but, with the allocation of
         American Rescue Plan Act funds, estimated completion is within the next 3 -4 years.
         Priority will be given to those unserved areas that are also identified as reinvestment
         areas in the City’s Comprehensive Housing Policy.

     •   The State of West Virginia has allocated $90 million for the State Broadband Initiative
         which comprises three award programs: (a) Line Extension Advancement and
         Development (LEAD) will award competitive grants to internet service providers to

U.S. Treasury: Insights from State and Local Fiscal Recovery Funds April 2022 Reporting Data           6
              expand existing fiber and cable networks; (b) GigReady Initiative will provide matching
              state funds for local governments that develop projects to pool their broadband
              investments; and (c) Major Broadband Project Strategies program will focus on large-
              scale multicounty projects that require additional resources to achieve rapid
              implementation.


   Key Investments through March 31, 2022 for State, Local, Territorial, and Tribal Governments*
                                                                          Number of     Number of
                                                      Reported            Governments Projects
Category                                              Funds               Pursuing      Reported
                                                      Budgeted
Housing: Emergency Aid, Affordable Housing,           $12.97 billion          607          1,311
Homelessness
Infrastructure: Water, Sewer, and Broadband           $16.42 billion         2,412         5,182

COVID-19 Public Health Response**                                           $9.12 billion           1,368   4,192

Worker Support: Unemployment Aid, Job Training,                             $8.95 billion           1,716   2,752
Public Sector Workforce, Essential Worker Premium
Pay***
Small Business Assistance                                                   $4.8 billion            417     700

Childcare and Early Learning***                                             $617.9 million          145     220



     *As with all data provided, these numbers reflect recipient reporting on investments through
     March 31, 2022; data do not capture investments since that date and may be underestimates due
     to conservatism in reporting. Categories reflect eligible uses, outside of replacing lost revenue,
     available to all state, local, and Tribal governments. Some uses of funds are only available to
     states and territories given their responsibilities.

     **Includes vaccinations, testing, contact tracing, PPE, prevention in congregate facilities,
     medical expenses, and other public health measures.

     *** Figures are not comparable to the previous chart from the January reporting data because of
     changes to the Expenditure Categories associated with Treasury’s final rule, beginning with the
     April 2022 reporting period.




     U.S. Treasury: Insights from State and Local Fiscal Recovery Funds April 2022 Reporting Data             7


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