American Rescue Plan One-Pager

The American Rescue Plan (ARP) was signed into law on March 11th, 2021, as a $1.9
trillion COVID-19 relief effort. The law contains many layers of federal, state, county, and
local authorizations. Most importantly, the bill gives $362 billion in funding for states,
territories, counties, cities and tribal governments. Out of this sum, $65.1 billion in funds
goes directly to counties, with a formula determining the exact amount, determined partly
by population size. Montgomery County, for example, receives $203 million directly through
the ARP.
The ARP specifically outlines the flexibility of the county funds, describing what the
funds can and cannot be used for. For example, the funds can be used to provide
government services to the extent that the reduction in taxation revenue did not allow for.
Additionally, the funds can be used to make necessary investments in water, sewer, and/or
broadband infrastructure. Most consequentially to the Housing Opportunities Commission
of Montgomery County (HOC), the law allows state and local governments to transfer the
funds to a private nonprofit organization, or a special-purpose unit of state or local
government. Counties are required to report to the state and federal government how funds
were used and how their tax revenue was modified through the pandemic.
Other than the specifically appropriated $65.1 billion appropriated to counties,
many sections of the bill indirectly affect counties, mainly through the government aiding
the county in some process. For example, the bill gives $47.8 billion to the Department of
Health and Human Services to help states and counties in administering and distributing
COVID-19 tests and expanding contact tracing efforts Of the $20 billion appropriated in the
National COVID-19 Vaccination Program, $7.5 billion is designated to the Center for Disease
Control (CDC) to support state and local health departments in the distribution of vaccines.
Finally, the ARP provides $123 billion in emergency funds to support K-12 schools in safely
reopening, a process that countywide governments in Maryland have a unique say in due to
the strong relationship between county governments and county school systems in
Maryland.
Important to HOC, the ARP has many housing programs that are funded through the
bill. The bill provides $21.6 billion for another round of emergency rental assistance, and $5
billion to the Department of Housing and Urban Development (HUD) for homeless
prevention and supportive services, of which 60% will go to local jurisdictions. Finally, the
bill gives $10 billion to the Homeowner Assistance Fund for states to distribute to
homeowners struggling to make mortgage payments, and $5 billion to HUD for emergency
Housing Choice Vouchers.