Treasury, April 2023 Quarterly and Annual Reporting Analysis

Summary

Treasury's analysis of State and Local Fiscal Recovery Funds (SLFRF) reports filed in April 2023, covering spending through March 31, 2023. Treasury says over 99.99% of the $350 billion had been distributed to more than 30,000 jurisdictions, and that the states and largest cities and counties had budgeted nearly 80% of their funds. Recipients reported $283 billion in pandemic lost revenue; over 18,000 governments were budgeting nearly $100 billion of SLFRF money to replace it, across over 53,000 projects. A table of local, territorial and Tribal spending lists $26.5 Billion budgeted for water, sewer and broadband, $17 Billion for housing, $12.7 Billion for COVID-19 public health, $11.8 Billion for worker support, $4.6 Billion for small business assistance and $1 Billion for childcare.

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State and Local Fiscal Recovery Funds: A Catalyst for Innovation, Equity,
                     and Resilience in Communities
                State and Local Fiscal Recovery Funds April 2023 Reporting Data Analysis
The State and Local Fiscal Recovery Funds (SLFRF) program established by the American Rescue
Plan Act continues to deliver critical financial support to communities across the country
recovering from the COVID-19 pandemic. States, territories, Tribes, and local governments are
using SLFRF funds to support economic recovery, workforce and small business development,
and to finance healthy, safe, and affordable housing. The impacts of the SLFRF program are felt
today in nearly every community across the country.
The Treasury Department continues to regularly release SLFRF reporting data received from
recipients.1 This analysis features the latest dataset from reports collected in April 2023,
representing spending through March 31, 2023. All SLFRF recipients, from small towns to states
and territories, were required to file Project and Expenditure reports in April. Specifically, this
includes quarterly Project and Expenditure reports from the largest SLFRF recipients: states,
territories, Tribal governments with an award over $30 million, and local governments with a
population over 250,000 or an award over $10 million. This also includes annual Project and
Expenditure reports from Tribal governments with an allocation less than $30 million and local
governments with populations less than 250,000 and allocation less than $10 million. The data
reported through March 31, 2023 is available on Treasury’s SLFRF data dashboard.
To date, over 99.99% of the $350 billion in SLFRF funds have been distributed to more than
30,000 jurisdictions. The latest data reveals that recipients continue to make great progress in
using SLFRF funds, as the states and the largest cities and counties have budgeted nearly 80% of
their total SLFRF funds. The number of projects continues to grow: 14% among quarterly
reporters and 3% among annual reporters.
In 2008, the Great Recession led to state and local government to significantly reduce their
budgets – placing a drag on the economy for over three years of the recovery.2 The data shows
that SLFRF continues to be instrumental in helping governments maintain services and
infrastructure by avoiding deep budget cuts. This can be seen in the role these funds have
played in helping cities and states replace revenue they lost as a result of the pandemic –
revenue which is essential in order to pay for government services like public transportation
and emergency services. As of March 31, 2023, SLFRF recipients reported $283 billion in lost
revenue resulting from the pandemic. Over 18,000 participating governments reported that
they are budgeting nearly $100 billion in SLFRF funds to help replace this lost revenue, funding
over 53,000 projects to provide fiscal stability in their jurisdictions.



1 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.
2 Remarks by Secretary of the Treasury Janet L. Yellen at National Association of Counties 2023 Legislative Conference | U.S.

Department of the Treasury


SLFRF April 2023 Reporting Data Analysis
The data illustrates that ultimately, the American Rescue Plan prevented severe public service
cuts and helped state, territorial, Tribal, and local governments resume normal operations.
Because these resources prevented the economic scarring we saw following the Great
Recession, in addition to responding to the immediate aftermath of the pandemic,
governments are also investing SLFRF funds to respond to the longer-term impacts of the
pandemic, including by boosting their economies, promoting equity, investing in infrastructure
and their workforces, and increasing the availability of healthy, safe, and accessible places for
people to live.

  Key SLFRF Investments through March 31, 2023 for State, Local, Territorial, and
                             Tribal Governments3
                                                                      Reported              Number of              Number of
                                                                       Funds               Governments              Projects
                          Category                                    Budgeted               Pursuing              Reported
 Housing: Emergency Aid, Affordable Housing,
                                                                         $17 Billion              861                      2,460
 Homelessness

 Infrastructure: Water, Sewer, and Broadband                           $26.5 Billion             3,122                     9,628

 COVID-19 Public Health Response**                                     $12.7 Billion             1,625                     5,847
 Worker Support: Unemployment Aid, Job
 Training, Public Sector Workforce, Essential                          $11.8 Billion             2,016                     3,982
 Worker Premium Pay

 Small Business Assistance                                              $4.6 Billion              661                      1,363

 Childcare and Early Learning                                              $1 Billion             240                         396
**Includes vaccinations, testing, contact tracing, PPE, prevention in congregate facilities, medical expenses, and
other public health measures.



The following examples come from data provided to the Treasury Department by SLFRF
recipients.4 These examples provide a snapshot of the types of projects that recipients are
implementing across key categories using SLFRF funds.5


3 This chart includes 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) from January 1, 2023 through March 31, 2023 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, and Tribal governments with an allocation less than $30 million) from April 1, 2022 through March 31, 2023.
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 March 31, 2023. Recipients file

either annually or quarterly based on population and allocation size. The data within this report is inclusive of all recipients due




SLFRF April 2023 Reporting Data Analysis
Boosting Housing Choices for Americans
Expanding access to affordable housing is a top priority for the Treasury Department and for the
Biden-Harris Administration. The SLFRF program is driving investments at every level of
government to create new and improve existing affordable housing stock. Treasury is playing a
key role by encouraging jurisdictions to consider using their funds to support housing stability
and the construction and preservation of new affordable housing or to supplement other
American Rescue Plan programs aiding renters and homeowners, such as the Emergency Rental
Assistance program and the Homeowners Assistance Fund. Over the summer of 2022, Treasury
expanded the flexibility for recipients to use their funds to invest in long-term affordable housing
projects. Since then, spending on affordable housing continues to accelerate.
Compared to data from July 2022, funds budgeted for housing stability, preservation, and
construction increased by 29%. These efforts are taking place in a wide array of jurisdictions.
Since January 2023, communities have increased their SLFRF budgets for housing investment by
7%.
Examples of housing projects include:
 •    The State of California is investing $1.7 billion in capital for affordable housing
      developments, preservation of existing affordable housing, and development of additional
      adult and senior care facilities. California is also using $2.2 billion in SLFRF funds to purchase
      and rehabilitate housing specifically for individuals facing homelessness, including
      rehabilitating hotels, motels, vacant apartment buildings, and other buildings and converting
      them into housing.
 •    Faulkner County, Arkansas is leveraging SLFRF funds to build CoHO Hope Village, a small
      home community development for unhoused individuals and veterans who will be provided
      general and mental health services, workforce training, and case management.
 •    The City of Fort Worth, Texas is utilizing $4.2 million to purchase 36 properties in a low-
      income neighborhood as part of a $70 million redevelopment investment to include
      affordable housing in addition to retail, commercial units, parks, and other public spaces.
 •    The City of Pompano Beach, Florida is budgeting $2.5 million to construct new single-family
      homes on city-owned vacant lots, providing mixed-income affordable housing opportunities.
 •    The City of Raleigh, North Carolina is budgeting $10 million to purchase an extended-stay
      113-room hotel, to improve access to stable, affordable housing, among unhoused
      individuals, combining the existing extended-stay model with permanent supportive housing
      and other types of affordable housing.




to it being an annual reporting period. All recipients, regardless of size, are required to file Project and Expenditure Reports
annually by April 30. In 2023, these Project and Expenditure reports covered the period from January 1, 2023 – March 31, 2023
for quarterly reporters and April 1, 2022 to March 31, 2023 for annual reporters.


SLFRF April 2023 Reporting Data Analysis
Wiring America for High-Speed Internet

The SLFRF program is stimulating investments in strengthening the country’s internet
infrastructure by funding upgrades – such as laying fiber backbone, completing last-mile
connections, and prioritizing equitable access. These crucial investments provide residents with
access to education, health care, government services, and economic opportunity. Since January
2023, communities increased their SLFRF budgets for broadband projects by 3%. As of March 31,
2023, SLFRF recipients budgeted over $7.7 billion in SLFRF funds for more than 950 broadband
internet projects. SLFRF funds invested in broadband projects complement the American Rescue
Plan’s investment in expanding affordable highspeed internet access through Treasury’s Capital
Projects Fund.
Examples of broadband projects include:
 •   Box Elder County, Utah is planning to leverage $1.5 million in SLFRF funds for last-mile
     infrastructure investments to bring high-speed internet service to underserved rural
     communities.
 •   The City of Brownsville, Texas is budgeting $20 million to connect residents and businesses
     to high-speed internet.
 •   The State of Iowa is investing nearly $200 million from the SLFRF program and $149 million
     from the Capital Projects Fund into upgrading broadband connections throughout the state.
     Projects are located in over fifty different counties.
 •   New Kent County, Virginia is budgeting nearly $4.5 million in SLFRF funds to provide access
     to highspeed fiber optic broadband service to businesses and to every household in the
     County, including over 3,000 households that are currently unserved by broadband internet.
 •   The State of West Virginia is budgeting $90 million from the SLFRF program and $130 million
     from the Capital Projects Fund for the West Virginia State Broadband Initiative, which
     comprises three award programs. First, the Line Extension Advancement and Development
     (LEAD) project will expand existing fiber and cable networks. Second, The GigReady Initiative
     will provide matching state funds for local governments to pool their broadband
     investments. Third, the Major Broadband Project Strategies (MBPS) program will focus on
     large-scale multicounty projects that require additional resources to achieve rapid
     implementation.




SLFRF April 2023 Reporting Data Analysis
Delivering Robust Investments in the US Workforce
Another area of investment of SLFRF funds is supporting and expanding the workforce in
response to the negative economic impacts of the pandemic in communities across the country.
Primary areas of workforce investment include helping impacted workers enter in-demand
careers, with a particular focus on assisting people who face barriers to employment. In addition,
these investments can help to prepare workers for industries of the future, such as those
catalyzed by the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation
Reduction Act. A key piece of this support is childcare, which enables more parents to enter and
remain in the workforce. Since January 2023, communities increased their SLFRF budgets for
workforce-related investments by 9%. As of March 31, 2023, SLFRF recipients have budgeted
over $11.8 billion in SLFRF funds for more than 3,800 workforce projects.
Examples of workforce projects include:
 •   The State of Colorado has budgeted $49 million to create the Finish What You Started
     component of the Colorado Opportunity Scholarship Initiative. This program will increase
     the number of students who complete their academic programs and reduce the amount of
     debt they have to take on to obtain their degree.
 •   The State of Connecticut is planning to use $70 million in SLFRF funding to provide job
     training support to individuals who lost their job due to the pandemic or were unemployed
     when the pandemic began and have remained so due to the economic impacts of the
     pandemic.
 •   The City of Detroit, Michigan is leveraging nearly $60 million in SLFRF funds to support Skills
     for Life – Work functions (jointly with the Skills for Life – Education initiative). This program
     supports unemployed or underemployed Detroit residents, such as returning citizens, those
     experiencing housing insecurity, those lacking high school diplomas and/or post-secondary
     credentials, and other populations that face barriers to employment.
 •   Douglas County, Minnesota is obligating $500,000 to provide tuition-free retraining and
     upgrading skills, including manufacturing or small business boot camps, to residents who are
     unemployed due to the pandemic, or who were already unemployed when the pandemic
     began and remain due to the negative economic impacts of the pandemic.
 •   The City of Rochester, New York is budgeting $15.3 million to expand youth and adult
     workforce development services, including youth internships, job training and job placement
     assistance, and job search and application assistance.
 •   The City of Bridgeport, Connecticut is budgeting $6 million for workforce training
     development programs that include providing access to job training and education
     programs, offering industry-recognized certifications, and connecting individuals to
     apprenticeship programs.




SLFRF April 2023 Reporting Data Analysis
Developing Local Economies through Small Businesses
To ensure sustainable growth for the future, many governments have invested in a wide variety
of programs that support small businesses’ important role as key employers and drivers of the
local economy. Since January 2023, communities have increased their SLFRF budgets for small
business projects by 5%. To date, governments have budgeted over $4.6 billion for over 1,300
projects to support small businesses and small business development. Examples of small business
projects include:
 •   The City of Fort Collins, Colorado is budgeting $400,000 for a Multicultural Business and
     Entrepreneur Center (MBEC) designed to address gaps in the current business support
     system, especially for entrepreneurs who may not have access to the resources, technical
     assistance, or support network that other groups may have. Consultations will be offered in
     Spanish and English.
 •   The City of Mesa, Arizona is using $3.2 million for a restaurant and food business incubator.
     The incubator, paired with a modern public-facing dining facility, will provide business
     development support and cultivate the success, sustainability, and resiliency of local food
     entrepreneurs in the downtown core of Mesa.
 •   Oakland County, Michigan is budgeting $18 million to fund Business Forward Consultants
     that will be embedded in economically disadvantaged communities. Consultants will provide
     counseling and technical assistance to small businesses and organizations in obtaining
     professional services, and federal, state, and local resources. In addition, professional
     training opportunities and tailored support based on the business industry and stage will be
     provided to each business.


Tapping SLFRF for Water and Sewer Infrastructure

Recipients may use SLFRF funds to invest in critical water and sewer infrastructure to improve
access to clean drinking water and to support vital wastewater and stormwater projects. To date,
governments have invested $2.4 billion in more than 1,400 projects to meet their water,
wastewater, and stormwater goals. Since January 2023, communities have increased their SLFRF
budgets for water and sewer projects by 16%.
Examples of water and sewer projects include:
 •   The Village of Armada, Michigan is utilizing SLFRF funds to replace the filters at their water
     treatment plant. New filtration will allow the village to filter out additional arsenic from the
     drinking water supply.
 •   Bay City, Michigan is using $6 million in SLFRF funding to replace lead service (water) lines
     in Bay City, with a goal to have most lead lines in the city replaced prior to December 31,
     2026.




SLFRF April 2023 Reporting Data Analysis
 •   The City of Dallas, Texas is leveraging $35 million to improve equity across Dallas Water
     Utilities’ (DWU) water and wastewater systems and provide service to all Dallas residents.
     The program identified 47 areas throughout the city that did not have access to water and/or
     wastewater service.
 •   The Village of Johnsburg, Illinois is budgeting approximately $850,000 in SLFRF funding to
     further extend its sanitary sewer collection and conveyance system.
 •   The State of North Carolina is allocating approximately $1.25 billion for grants to water and
     wastewater utilities to implement infrastructure construction projects, including
     rehabilitation of existing assets, regionalization of systems, decentralization, and extensions
     of service to underserved communities.
 •   The Township of Scott, Pennsylvania is improving its sanitary sewer facilities. The sewer
     system repairs help protect the health, safety, and welfare of the Township’s residents by
     providing a reliable sewage disposal method.


These opportunities are possible because the economy is in a stronger place today as a result of
the American Rescue Plan. Looking forward, the Treasury Department remains focused on
ensuring that recipients can leverage these dollars to their full potential.




SLFRF April 2023 Reporting Data Analysis


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