On March 11, 2021, President Biden signed the American Rescue Plan Act, a $1.9 trillion economic stimulus package designed to address the COVID-19 pandemic. This legislation included the creation of the State and Local Fiscal Recovery Funds program, which provides money directly to states and localities to help with the response to and recovery from the COVID-19 pandemic. On Thursday, January 6, 2022, the United States Treasury Department released its final rule on the state and local American Rescue Plan (ARP) funds. In exciting news, the final rule confirms that creating, expanding, or financially supporting paid sick time, paid family leave, and paid medical leave are permissible uses of these funds. This means that the State and Local Fiscal Recovery Funds provide an unprecedented opportunity for states and localities to advance paid leave for workers.
- Fact Sheet: A State and Local Opportunity to Advance Paid Leave for Workers: American Rescue Plan State and Local Funds Can Be Used for Paid Leave
- Blog Post: Using Federal Funds to Advance Paid Leave: New Developments from Colorado and Vermont
- Memo: Using the American Rescue Plan’s State and Local Fiscal Recovery Funds to Address the Care Crisis
- February 2022 Webinar: Discussion on American Rescue Plan Act and Paid Leave Opportunities
- Best Practices for Paid Family Leave Policies for State Government Employees
- Best Practices for Paid Family Leave Policies for Local Government Employees
- September 2022 Webinar: American Rescue Plan Funds and Paid Leave: Exciting Updates and Opportunities
- For more information or to discuss opportunities for using ARP recovery funds to advance paid leave in your state or city (including paid sick time, emergency leave, paid family and medical leave, government employee leave, contractor sick leave, and/or paid leave incentive programs): please contact Meghan Racklin at mracklin@abetterbalance.org.
- The Treasury Department’s homepage on the State and Local Fiscal Recovery Funds
- The Treasury Department’s Final Rule on the State and Local Fiscal Recovery Funds
- The Treasury Department’s FAQ on the Final Rule
- For assistance determining how much of the State and Local Fiscal Recovery Funds allocated to your state or locality has been spent, see:
- § The Treasury Department’s allocations for states, metropolitan cities, counties, non-entitlement units, and territories
- § National Conference of State Legislatures’ Fiscal Recovery Fund Spending Dashboard
- § Center on Budget and Policy Priorities’ Fiscal Recovery Fund Spending by States, U.S. Territories
- § National League of Cities’ County Spending Tracker
- § National League of Cities’ City Spending Tracker
- Toolkit: How Local Governments Can Improve Workplace Standards for Frontline Workers During COVID-19 and Beyond & Appendix: Suggestions for Using American Rescue Plan Funds to Implement Model Policies for Workers During the COVID-19 Pandemic
- National League of Cities: Early Childhood is Critical to Recovery: Utilizing Coronavirus Local Fiscal Recovery Funds to Support Vulnerable Children and Families
- White House Toolkit: How State and Local Leaders Can Use American Rescue Plan State and Local Fiscal Recovery Funds to Address Students’ Academic and Mental Health Needs
- Urban Institute: How Are Cities Planning to Use State and Local Fiscal Recovery Funds for Their Housing Needs?
- Local Progress’ Just Recovery Webpage and Resources
- The Lead Together Coalition’s ARP Resources and Case Studies
- Economic Policy Institute: The end of the pandemic public health emergency largely doesn’t change how state and local governments can use ARPA fiscal relief funds
- Economic Policy Institute: State and local governments have spent less than half of their American Rescue Plan fiscal recovery funds
