American Rescue Plan Act (ARPA) in Northampton

Developing a Transparent, Strategic & Equitable Plan for Northampton's Federal COVID-19 Funding

Overview

• Earlier this year, Congress passed the American Rescue Plan Act (ARPA), a far-reaching COVID recovery measure proposed by the Biden-Harris Administration. President Biden signed ARPA into law on March 11, 2021.
• This $1.9 trillion measure provides direct financial relief to Americans, assistance to businesses, and aid to states, counties, and municipalities.
• In total, Northampton will receive $21,747,984.00 in ARPA funds over the course of the next two years. All of the funding must be committed by December 31, 2024 and fully expended by December 31, 2026.

• How can Northampton Spend the Money?

  There are four acceptable categories of use:

  1. Respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.
  2. Pay workers providing essential work during the COVID-19 public health emergency.
  3. Provide government services to the extent of the reduction in revenue to the City due to the COVID-19 public health emergency in the most recent full fiscal year.
  4. Make necessary investments in water, sewer, or broadband infrastructure.

• Goals for Distributing ARPA Funds

  • Seek extensive input and feedback from the community to help structure the city's use of ARPA funding
  • Design a transparent, accessible, and equitable project selection process for allocating funds
  • Prioritize projects, people, businesses, and organizations with a focus on those most impacted by COVID-19
  • Leverage other state and federal resources to maximize Northampton’s ARPA funding
  • Cover the city’s costs to administer ARPA funds