08/05/2021

Will Relief Funding Help Those Who Need It Most?

Don't invest in systems that increase inequity

You can almost hear the sighs of relief. Only a few months ago, state and local officials across the United States were preparing for the worst. In some cases, the worst was already happening.

As the human and economic impact of the pandemic worsened, massive budget deficits and cuts in essential services seemed inevitable. Many municipalities and private employers had already started furloughs and layoffs. Cities all over the country were seeing record numbers of small business closures, and projecting staggering revenueand budget deficits. Some were starting to see evidence of widening disparities in access to education among children. And state and local leaders knew from hard experience that already-marginalized communities were bearing the brunt of it all.

But now, state and local governments are receiving the largest infusion of direct federal funding in US history: $350 billion dollars to rebuild local economies and systems across the country over the next three years. This American Rescue Plan funding is more than twice the relief funding provided by the federal government during the Great Recession, and a Pew analysis shows that it equals between 5 percent and 20 percent of states’ total spending in the 2020 fiscal year.

Please select this link to read the complete article from SSIR.