State to Spread $321 Million in Federal COVID Relief Money Among 1,650 Communities

LANSING, Mich. – More than 1,650 communities in Michigan will receive more than $321 million to help them invest in infrastructure, grow their economies, and continue delivering essential services as part of the second batch of federal American Rescue Plan Act (ARPA) Coronavirus Local Fiscal Recovery Fund payments.

“This funding will empower over 1,650 communities across Michigan continue getting things done that make a real difference in people’s lives,” said Gov. Gretchen Whitmer, who announced the investment Wednesday “As we focus on growing our economy and creating good-paying jobs, today’s over $321 million in funding will help counties, cities, villages, and townships across the state invest in local roads and bridges, support essential workers, and protect safe drinking water.

“Local officials have a once-in-a-lifetime opportunity to make lasting investments in the kitchen-table issues that matter most,” she added.

The funding provided to counties, cities, villages and townships across the state can be used to respond to the effects of the COVID-19 pandemic, bring back jobs, provide premium pay to essential workers, make up for lost revenue or invest in water, sewer or high-speed internet infrastructure. Recipient local units of government have until 2024 to identify projects and obligate funds. 

Previously, the first half of Coronavirus Local Fiscal Recovery Fund payments totaling more than $321 million was distributed to smaller communities within the last year. In total, ARPA provided more than $642 million in Coronavirus State and Local Fiscal Recovery Funds to Michigan’s smaller communities. 

The U.S. Department of Treasury is responsible for directly distributing $1.80 billion to 49 Michigan metropolitan cities and townships and $1.93 billion to all 83 Michigan counties. The state of Michigan is responsible for distributing Coronavirus State and Local Fiscal Recovery Funds dollars to smaller cities, villages and townships.

The Michigan Department of Treasury worked with local government partners and local communities to provide technical assistance and education through webinars, phone calls and certified letters to ensure local officials would not miss the opportunity to claim their allotted federal funds. If a local community received payments from the first round, no further action is required from local officials.

“My team is ready to continue to assist local communities receiving this important aid,” said State Treasurer Rachael Eubanks. “Local officials are encouraged to reach out to our team if they encounter issues receiving a payment.”