American Rescue Plan Act
Chicopee has received $38 million in federal ARPA funds with $14 million received in 2021 and the second half distributed by the federal government in August of 2022. The funds can be used for specific purposes as described in the final rule. Mayor John Vieau has established a committee to advise on the use of these funds within the ARPA requirements. Please see the reports and minutes for requests made and projects selected and funded.
General Scope of Use
- Make up for lost revenue due to COVID-19 by determining lost general fund revenue and providing flexible spending to the city
- Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral health care, mental health and substance misuse treatment, and certain public health and safety personnel responding to the crisis, among other uses
- Address negative economic impacts caused by the public health emergency, including by rehiring public sector workers, providing aid to households facing food, housing or other financial insecurity, offering small business assistance, and extending support for industries hardest hit by the crisis
- Aid the communities and populations hardest hit by the crisis, supporting an equitable recovery by addressing not only the immediate harms of the pandemic, but its exacerbation of longstanding public health, economic and educational disparities
- Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service during the pandemic
- Invest in water, sewer and broadband infrastructure, improving access to clean drinking water, supporting vital wastewater and stormwater infrastructure, and expanding access to broadband internet
Prohibited Use of ARPA Funds
- States and territories may not use this funding to directly or indirectly offset a reduction in net tax revenue due to a change in law from March 3, 2021 through the last day of the fiscal year in which the funds provided have been spent.
- No recipient may use this funding to make a deposit to a pension fund. Treasury’s Interim Final Rule defines a “deposit” as an extraordinary contribution to a pension fund for the purpose of reducing an accrued, unfunded liability.
- General Infrastructure other than an eligible use of water, sewer, and broadband investments or above the amount allocated under the revenue loss provision.
- Other ineligible uses, including funding debt service, legal settlements or judgments, and deposits to rainy day funds or financial reserves.