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American Rescue Plan Act (ARPA)

On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law. This legislation established the Coronavirus State and Local Fiscal Recovery Fund (SLFRF), which provides significant resources to state, local, territorial, and Tribal governments to support urgent COVID-19 response efforts, replace lost public sector revenue and restore service levels, support immediate financial stabilization for households and businesses, and address public health and economic challenges caused by the pandemic and that have disproportionately impacted certain populations.

The U.S. Treasury has allocated $18.3 million to the City of Iowa City. The City received approximately half of this amount in May 2021 and anticipates receiving the remaining balance around May 2022. SLFRF dollars are intended to both address emergency stabilization needs and help localities make long-term, transformative investments (especially in underserved populations) through careful planning and extensive public input.











U.S. Treasury State and Local Coronavirus Fiscal Recovery Fund Guidance

On May 10, 2021, the US Treasury released guidance on state and local use of funds. This guidance provides cities broad flexibility to decide how best to use this funding within the following categories of eligible uses:

  • Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff;
  • Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector;
  • Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic;
  • Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and,
  • Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and expand access to broadband internet

Within these overall categories, the U.S. Treasury’s Final Rule provides guidelines and principles for determining the types of programs and services that this funding can support. The Treasury has designed these provisions to take into consideration the disproportionate impacts of the pandemic.

Visit the U.S. Treasury State & Local Fiscal Recovery Funds Page for more resources

City of Iowa City Use of Funds

City Council has identified guiding principles to inform the process of prioritizing ideas for use funds.

City Council and staff will work collaboratively with residents, businesses, non-profits, and other community partners and stakeholders to ensure a transparent process that is aligned with community needs. Additionally, the City will seek to coordinate with Johnson County and neighboring cities to maximize the transformative impact of these funds and the many other funding streams and programs included in the American Rescue Plan Act.

View American Rescue Plan Act Presentation from City Council’s May 18, 2021 Work Session

View ARPA Initial Spending Recommendations Presentation from City Council's Sept. 7, 2021 Work Session

Public Input

An initial round of public input opportunities was held through August 15, 2021. Responses were compiled for City Council to discuss at their September 7, 2021 work session:

Ongoing public input opportunities will be planned throughout the eligible use period (Dec. 31, 2024) to ensure all voices are heard. As additional opportunities are scheduled, they will be promoted through City platforms and on this webpage.

Past public input opportunities:

  • Diversity Market (July 10, 2021)
  • Farmer's Market (July 24, 2021)
  • Listening Session at Mercer Park (August 11, 2021)
  • Online survey (Available in English, Spanish, Arabic, and French. Survey closed Aug. 30, 2021).
  • E-mail (publicinput@iowa-city.org)

Documents & Links