Treasury, July 2023 Quarterly Reporting Analysis

Summary

Treasury's analysis of State and Local Fiscal Recovery Funds (SLFRF) reports filed in July 2023, covering spending through June 30, 2023 for quarterly reporters, plus annual reporters' data through March 31, 2023. Treasury says states and the largest cities and counties had budgeted 85% of their total SLFRF funds and that the number of projects grew 18% among quarterly reporters in the quarter. Recipients reported $290 billion in lost revenue resulting from the pandemic; over 19,000 governments were budgeting nearly $108 billion in SLFRF funds to replace it, across over 56,000 projects. Quarterly reporters are states, territories, large cities and counties, and Tribal governments with an allocation over $30 million. The document credits the American Rescue Plan with preventing severe cuts to public services.

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“Treasury, July 2023 Quarterly Reporting Analysis.” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/treasury-july-2023-quarterly-reporting-analysis-cf4980a317/, SHA-256 2d4006e31511d6028b8ab182ab0645c114cff2a20a5400342b1bd380ea5a57c2.

Full text

State and Local Fiscal Recovery Funds: Supporting Recovery,
Equity, and Building Resilience for Stronger Communities

State and Local Fiscal Recovery Funds July 2023 Reporting Data Analysis

Communities across the country are recovering from the COVID-19 pandemic and
growing their economies through President Biden’s American Rescue Plan’s State and
Local Fiscal Recovery Funds (SLFRF) program. The SLFRF program provides funding
to states, territories, Tribes, and local governments to support economic recovery, job
creation and workforce expansion, and access to healthy, safe, and affordable housing.
Today, the SLFRF program is making a difference in nearly every community across the
country.

In the latest quarterly data, through June 30, 2023, recipients continue to make
progress in using SLFRF funds, as states and the largest cities and counties have
budgeted 85% of their total SLFRF funds .1 This quarter, the number of projects grew
18% among quarterly reporters.

The data also continue to show that SLFRF funds are instrumental in helping
governments maintain services and infrastructure by avoiding deep budget cuts, as
SLFRF funds are helping cities and states replace revenue they lost as a result of the
pandemic – revenue which is essential to pay for government services like public
transportation and emergency services.2 As of June 30, 2023, SLFRF recipients
reported $290 billion in lost revenue resulting from the pandemic. Over 19,000
participating governments reported that they are budgeting nearly $108 billion in
SLFRF funds to help replace this lost revenue, funding over 56,000 projects to
provide fiscal stability in their jurisdictions.

The data illustrate that the American Rescue Plan prevented severe cuts to public
services and helped state, territorial, Tribal, and local governments swiftly resume
normal operations. In addition to responding to the immediate aftermath of the

1
The U.S. Department of the Treasury continues to regularly release SLFRF reporting data received from recipients.
This includes the most recent data submitted by quarterly reporters in July 2023, representing spending through
June 30, 2023, which is available on Treasury’s SLFRF dashboard. The summary statistics in this blog post reflect
these data, as well as the data from annual reporters submitted in April 2023, representing spending through
March 31, 2023. Tribally reported information is included in aggregate statistics about the SLFRF program (e.g., the
total number of governments using funds for a specific eligible use, total projects reported); however due to
privacy considerations, Treasury does not release complete information on all Tribal projects.
2
State and local governments were forced to cut budgets due to the 2008 Great Recession resulting in reductions
in services and slowing the economic recovery. Remarks by Secretary of the Treasury Janet L. Yellen at National
Association of Counties 2023 Legislative Conference | U.S. Department of the Treasury

1
pandemic, governments are investing SLFRF funds to respond to the longer-term
impacts of the pandemic, including organizing efforts to grow their economies,
promote equity, invest in infrastructure and their workforces, and increase the
availability of affordable housing.

Key SLFRF Investments through June 30, 2023, for State, Local,
Territorial, and Tribal Governments3
Reported Number of Number of
Funds Governments Projects
Category Budgeted Pursuing Reported
Housing: Emergency Aid, Affordable
$17.7 Billion 925 2,766
Housing, Homelessness
Infrastructure: Water, Sewer, and
$31.2 Billion 3,259 12,072
Broadband

COVID-19 Public Health Response** $12.1 Billion 1,688 6,230

Worker Support: Unemployment Aid, Job
Training, Public Sector Workforce, $12.8 Billion 2,092 4,212
Essential Worker Premium Pay

Small Business Assistance $5 Billion 692 1,478

Childcare and Early Learning $1.2 Billion 252 439
**Includes vaccinations, testing, contact tracing, personal protective equipment, 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 quarterly
reporters. 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 March 31,
2023 through June 30, 2023, and data received from annual reporters (metro cities, counties, and non-entitlement
units of local government 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 recipients’ 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 June 30, 2023.
Recipients file either annually or quarterly based on population and allocation size. The data within this report is
inclusive of recipient tiers 1-3’s latest quarterly filing, plus data from tiers 4-5 annual report made in 2023 Q1.
Recipient tiers 1-3 report quarterly, while tiers 4-5 report annually.

2
Investing in and Expanding Affordable Housing
Providing more Americans with access to affordable housing is a key goal for both the
Treasury Department and across 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 SLFRF 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. In the summer of 2022, Treasury
expanded the flexibility for recipients to use their SLFRF funds to invest in long-term
affordable housing projects.

The following are a sample of housing projects reported by SLFRF recipients:

The City of Bakersfield, California, is budgeting $9 million in SLFRF funds to support
long-term housing security, including the development and rehabilitation of affordable
housing involving new construction and in-fill development.

The City of Bangor, Maine, is dedicating $540,000 in SLFRF funds for a three-phase
affordable housing program. Phase I will construct 40 units of age 55+ housing along
with the infrastructure for Phases II and III. In total, the three-phase project is estimated
to deliver 115 affordable housing units.

Cobb County, Georgia, is budgeting $4 million to support the development of 14 single-
family, scattered site homes to bolster the county’s supply of affordable for-sale
single-family homes.

Fairfax County, Virginia, is budgeting approximately $11 million for a public-private
partnership to develop 175 units of affordable multi-family housing. The homes will be
located in a high-opportunity and high-income area within walking distance of transit,
medical, educational, recreational, and commercial amenities.

Harris County, Texas, is using $7.3 million to develop mixed-use, mixed-income
housing, including 55 single-family units, 3 duplexes, and 70 multi-family units, totaling
131 affordable units.

The City of Lynn, Massachusetts, is utilizing $1 million to create 43 units of mixed-
income veteran’s housing. The project will consist of 32 one-bedroom units, 10 two-
bedroom units, and one studio.

3
The State of Missouri is budgeting $3 million for the construction of 34 affordable
housing units. The project includes ten 1-bedroom units, eight 2-bedroom units, six 3-
bedroom units, ten 4-bedroom units, and a 4,000 square foot community facility for
supportive services and onsite staffing.

The State of Nevada is leveraging $430 million for two programs: (1) $300 million will
be used to fund the new construction of affordable housing units; and (2) an additional
$130 million is budgeted to fund the preservation and rehabilitation of affordable
housing.

Connecting People & Communities with Fiber Internet

The SLFRF program is stimulating investments to strengthen the country’s internet
infrastructure by funding upgrades – such as laying fiber backbone, completing last-
mile connections, and prioritizing equitable access. These investments provide
residents with access to education, health care, government services, and economic
opportunity. As of June 30, 2023, SLFRF recipients budgeted over $8.2 billion in SLFRF
funds for more than 1,195 broadband internet projects. The SLFRF funds invested in
broadband projects complement the American Rescue Plan’s expansion of affordable
highspeed internet access through Treasury’s Capital Projects Fund as well as the
Bipartisan Infrastructure Law.

The following are a sample of broadband projects reported by SLFRF recipients:

The State of North Carolina is utilizing $238 million to provide more than 75 grants to
broadband services providers to incentivize the deployment of high-speed internet to
underserved areas of the state. An additional $237 million is being invested in
broadband in North Carolina via the Capital Projects Fund.

Okaloosa County, Florida, is utilizing $2.5 million on a two-phase project to expand
affordable broadband service. Phase one will expand existing county-owned fiber optic
networks to reach community anchor institutions like schools, libraries, and community
centers, as well as provide middle mile capacity for service providers that would
otherwise not be able to reach underserved areas. The second phase will expand on
phase one efforts to supply the middle mile infrastructure necessary to develop public-
private partnerships for high-speed broadband in areas of need.

4
St. Lawrence County, New York, is budgeting $3 million to fund 16 broadband projects
to provide high-speed internet to approximately 610 residences.

Investing in Our 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 area of
investment is support for childcare to enable more parents to enter, reenter, or remain
in the workforce.

The following are a sample of workforce projects reported by SLFRF recipients:

Kenton County, Kentucky, is utilizing approximately $3 million to train 240 high school
students and 400 adults in skilled trades – including carpentry, facilities maintenance,
electric, HVAC, welding, and heritage trades.

The State of Michigan is leveraging $30 million for state apprenticeship expansion to
support occupations critical to Michigan’s economic recovery, assist citizens in
obtaining industry credentials recognized by the U.S. Department of Labor, and support
registered apprenticeship program expansion efforts across the state.

The State of Nebraska is utilizing over $10 million for the Workforce Development
Center at Northeast Community College’s South Sioux City Extended Campus, which
will serve eight counties in the region. The program will provide a wide range of training
opportunities to support high wage, high skill, and high demand occupations. It will
include a truck driving training facility, shelter and practice range, and expansions of
their industrial training building to support upskilling.

The City and County of Oahu is budgeting $5 million for Oahu Back to Work, which will
provide training and employment opportunities through the University of Hawaii and
other community partners. This workforce training program will offer employment and
career advancement opportunities by establishing the pipeline to employers in
targeted, economically diverse sectors that are ready to hire or promote trained
individuals, including in the green economy.

5
The State of Oklahoma is using $250,000 for the workforce program at Fab Lab Tulsa,
which teaches design thinking and digital fabrication skills. The program covers 3D
printing, laser cutting, CNC milling, and electronics through a project-based approach.
Students will document their work and build a resume and portfolio to share with future
employers.

Strengthening Small Businesses
To ensure sustainable growth for the future, SLFRF recipients have invested in a wide
variety of programs that support small businesses’ role as key employers and drivers
of local economies. To date, governments have budgeted over $5 billion for over 1,400
projects to support small businesses and small business development.

Examples of small business projects reported by SLFRF recipients include the
following:

The City of Indianapolis, Indiana, is dedicating approximately $500,000 for the Alkemy
Entrepreneurial Incubator Accelerator program. The program aims to help foster
community wealth building in under-resourced and minority communities that have
typically lacked access to entrepreneurial and small business start-up resources and
technical assistance.

The State of Michigan is utilizing $75 million for the Michigan Strategic Fund, which
will be used to create and operate programs to support small businesses
disproportionately impacted by the COVID-19 pandemic. The SLFRF funds will be used
to make grants for small businesses smart zones and other business entrepreneurial
initiatives, as determined by the Michigan Strategic Fund.

Now Streaming: Water and Sewer Investments
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 $3.5 billion in more than 1,700 projects to
meet their water, wastewater, and stormwater goals.

Examples of water and sewer projects reported by SLFRF recipients include the
following:

6
The State of Arizona is budgeting $200 million to create the Water Conservation
Grant Fund. The program aims to provide financial resources to eligible governments
and non-government organizations for the purpose of conserving water.

The State of Ohio is investing more than $95 million for a project near the City of
New Albany. The funds will be used to develop initial water and sewer services for the
project, including a 60-inch sanitary sewer line, pump station, force main, and
elevated water storage tank.

Placer County, California, is leveraging $28 million to design and construct a sewer
system to serve 28,000 dwelling units in their Placer Ranch and Sunset areas. The
service area includes a variety of housing options, commercial and industrial sites, and
a university.

The State of Mississippi is utilizing over $14.5 million for Phase A of the Rankin
County Watershed Protection and Restoration Program. The program will include
bank stabilization and drainage system improvements.

The State of South Carolina is budgeting approximately $1.5 billion across more than
200 water and sewer infrastructure projects. For example, the state has budgeted $10
million for the Hemphill Water Treatment Plant renovation project aimed at bringing
aging components up to current standards and increasing reliability and resiliency.
The project is expected to directly serve over 7,000 households and more than 350
businesses.

The City of Elgin, Illinois , is using over $10.5 million to replace approximately 950
residential and commercial lead service lines with copper service lines. The project is
anticipated to reduce lead-based health risks in the community.

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 SLFRF funds to meet the
unique needs of their communities.

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