American Rescue Act of 2021 - What We Know So Far

Coming into 2021, we’re still feeling the effects of the past year. At HUNT we have been following the developments of the American Rescue Plan Act of 2021 to bring those benefits to our clients. While New York State has not officially announced how this funding can be used, we are actively engaged with the emerging regulations to help you through this process. Funds are allocated to each state in the same proportion as their Title I, Part A grants. See Senator Schumer’s summary here: https://www.schumer.senate.gov/imo/media/doc/ARPNYLocal%20Aid31221.pdf


Eligible Uses of Funds by state and local governments:

  • Costs associated with responding to the COVID-19 public health emergency or its negative economic impacts, including but not limited to, assistance to households, small businesses, and nonprofits or aid to impacted industries such as tourism, travel, and hospitality.

  • To support workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers or by providing grants to eligible employers that have eligible workers who perform essential work.

  • To cover revenue losses caused by the COVID-19 public health emergency.

  • To make necessary investments in water, sewer, or broadband infrastructure.

  • Funds may NOT be used by states or localities to cover the costs of pension funds. States may NOT use funds to offset a reduction in taxes.

For our K-12 clients we know that financial support will be given to Districts through the Elementary and Secondary School Emergency Relief (ESSER) Fund. Districts have the flexibility to use the ESSER funds on any "activity authorized by the Elementary and Secondary Education Act,” including assessments, instructional materials, software, hardware, professional development, connectivity, teacher pay, and summer-school activities. The ESSER II legislation specifically mentioned that funds can be used to help address students’ learning loss. ESSER III from the American Rescue Plan included funding set-asides at both the state and district level to mitigate learning loss.


To find out more about the American Rescue Plan please visit: www.Congress.gov

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