Industry News

In March 2021, the National Conference of State Legislatures (NCSL) published it summary, What It Means for States: The American Rescue Plan Act Provisions. The publication summarizes the various provisions of the American Rescue Plan Act of 2021, which was signed into law by President Biden on March 11, 2021. The $1.9 trillion stimulus plan provides mandatory funding, program changes and tax policies aimed at mitigating the continuing effects of the COVID-19 pandemic.

Among other provisions, the Act provides $350 billion to help states, counties, cities and tribal governments cover increased expenditures, replenish lost revenue and mitigate economic harm from the pandemic. States and the District of Columbia will receive $195.3 in aid and local governments will receive $130.2 in aid to be divided among counties, metropolitan cities and towns with fewer than 50,000 people.

However, the Act stipulates that state and local governments cannot use the funds towards pensions or to offset revenue resulting from a tax cut enacted since March 3, 2021.

The summary is available here.