As local and state governments have yet to see the return of their revenues to the pre-pandemic levels, the American Rescue Plan Act allocates roughly $350 billion towards assisting both levels of governments with their fiscal recovery, and also a small allocation towards capital project funds for governments to carry out projects to support work, education and health monitoring during COVID-19. All funds allocated under this relief package to local and state governments must be used by December 31, 2024, and the governments cannot use the funds towards pensions or to offset revenue resulting from a tax cut enacted since March 3, 2021. Here are a few of the highlights from the National Law Review on how the distribution of funds will happen between state and local governments…
Source: Municipalbonds
