by: Sarah Hudacek, AOF Policy Assistant
Over the past year, AOF has been at the forefront of state advocacy on American Rescue Plan Act (ARPA) funds. We’ve held two webinars, sent a memo to the Governor’s office, held a press conference, led a social media storm, and issued a sign-on letter to Governor DeWine and leaders of the General Assembly. So what’s next for our ARPA advocacy?
ARPA funds are not only impacting current policy and recovery decisions but are set to impact policy decisions for the next biennium and beyond. It’s no surprise, then, that AOF and our members are paying close attention to the allocation of these funds and are working to ensure that every dollar is used to help Ohioans regain stability and recover from the economic and public health impacts of the COVID-19 pandemic.
Passed in March 2021, ARPA has brought billions of dollars of federal relief funds into Ohio, and only half of the most flexible pot of funds - the State and Local Fiscal Recovery Fund (SLFRF) - has been allocated from the federal government to date. SLFRF dollars must be allocated by December 2024 and spent by December 2026.
As a statewide coalition, AOF’s primary ARPA advocacy surrounds the $5.37 billion in State Fiscal Recovery Funds (State FRF) Ohio is in the process of receiving and allocating.
Separate from the strictly state pot, Local Fiscal Recovery Funds are bringing dollars directly to municipalities and counties, as well. Across the state, 38 cities are receiving a total $2.18 billion, all 88 counties are receiving a total $2.27 billion, and non-entitlement units of government, which include villages and townships, will receive $843.7 million. Altogether, state and local governments are set to receive $10.66 billion through SLFRF.
These SLFRF dollars come with very few restrictions on how they can be spent - namely, that they should be used to support recovery from the pandemic and cannot be used as an offset for tax cuts.
SLFRF allocations are split in half, with state and local governments having received the first half, or tranche, in May 2021 and expecting the second tranche in May 2022. To date, the state has spent or is poised to spend $2.15 billion of the first $2.68 billion payment. That leaves $534.7 million until the May allocation arrives and the state will have $3.2 billion at its disposal. Check out our timeline above of how this funding has been spent so far.
Allocations from the State FRF can be authorized through state legislation in the General Assembly or through Controlling Board approval. We’ve seen allocations through each of these vehicles. There have yet to be any public hearings or opportunities for public input on the spending of these massive amounts of federal funding at the state level, which AOF has consistently advocated cannot be adequately done without hearing from Ohioans themselves. Many local governments, however, are doing a much better job of engaging their communities on these dollars.
These $10.66 billion in federal funds coming into Ohio, though, is just one of dozens of funding streams that will bring ARPA money into the state. Some of the many programs and funding streams AOF and our partners are monitoring include:
Child Care: Through both Child Care Stabilization Grants and a funding boost to the Child Care and Development Block Grant, Ohio is receiving more than $1.3 billion for child care relief. As AOF has testified to the Study Committee on Publicly Funded Child Care and Step Up to Quality, Ohio’s child care providers need support now more than ever. The Ohio Department of Job and Family Services has utilized this funding to offer Child Care Stabilization Grants, with Phase 2 of at least three funding waves currently underway.
Housing: Ohio has received $613.5 million in Emergency Rental Assistance second round (ERA2) funds from ARPA to assist renters with rent, utilities and home energy costs, late fees, internet service for rental units, relocation expenses, and more. This is in addition to $560 million ERA first round (ERA1) funding through the CARES Act, and additional ERA1 and ERA2 funds going straight to local communities across the state from both ARPA and the CARES Act. For homeowners, the Homeowner Assistance Fund (HAF) was seeded with $280.8 million in ARPA funding to assist with mortgage defaults and delinquencies, utilities, energy costs, and more. ERA funds are distributed through Ohio’s Community Action Agencies and HAF funds are distributed under the Save The Dream Ohio program through the Ohio Housing Finance Agency. The Coalition on Homelessness and Housing in Ohio has a directory with instructions on accessing ERA on their website and Save The Dream Ohio’s website includes more information on HAF funding. As we all know, rent eats first. AOF and our members are working to ensure housing assistance funds get out into communities to stabilize families on their way to recovery.
Education: Not only are ARPA’s investments in education the largest programmatic funding sources, they even outpace the State FRF amount Ohio is receiving. Across the Elementary and Secondary School Emergency Relief Fund (ESSER), the Higher Education Emergency Relief Fund (HEERF), and Emergency Assistance to Non-Public Schools (EANS), Ohio has received an infusion of $5.8 billion in K-16 funding. Learning losses from the pandemic will impact a generation of students for years to come and we have a long way to go to fully support an equitable educational recovery.
Broadband: ARPA included funding for the first-ever federal broadband assistance program, the Emergency Broadband Benefit program (EBB). The EBB provided discounts of up to $50 per month towards high-speed internet service for eligible households. When the temporary EBB program ended, the FCC offered a replacement program, the Affordable Connectivity Program, which provided discounts of up to $30 per month to eligible households. ARPA’s Capital Projects Fund, of which Ohio received $274 million, was also focused on addressing critical connectivity needs amplified by the pandemic. As AOF recently wrote, we know that need for high-speed internet in Ohio is even greater than previously thought and is a critical issue that will require continuous investment to tackle.
Even though the American Rescue Plan just celebrated its first anniversary, ARPA spending is still in its infancy. From local governments to the Statehouse and every program fund in between, many ARPA allocations are still in-process. Even after funding has been doled out, advocates will continue to monitor implementation and reporting to ensure these funds are fulfilling their purpose: a strong, equitable recovery for all Ohioans.