American Rescue Plan Act

The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus Package, is a $1.9 trillion economic stimulus bill passed by the 117th United States Congress and signed into law by President Joe Biden on March 11, 2021, to speed up the United States' recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession.

Local governments will receive $130.2 billion, split evenly between cities and counties, with aid to cities based on the existing formula for Community Development Block Grants (CDBGs) and county aid based on population. Each county government will receive a split of the $65.1 billion and counties containing public lands will receive an additional $1.5 billion. NOTE: Counties will not have to suballocate their funding to cities and towns or ask states for the suballocations.

American Rescue Plan Act

Key Provisions for County Governments
The American Rescue Plan provides $350 billion dollars in emergency funding for state, local, territorial, and Tribal governments to remedy this mismatch between rising costs and falling revenues. This includes:

• $195 billion for states, (a minimum of $500 million for each State)
• $130 billion for local governments
   – $65.1 billion for counties
   – $45.6 billion for metropolitan cities
   – $19.5 billion for towns with fewer than 50,000 people
• $20 billion to tribal governments
• $4.5 billion to U.S. territories

The Rescue Plan will provide needed relief to state, local, and Tribal governments to enable them to continue to support the public health response and lay the foundation for a strong and equitable economic recovery. In addition to helping these governments address the revenue losses they have experienced as a result of the crisis, it will help them cover the costs incurred due responding to the public health emergency and provide support for a recovery – including through assistance to households, small businesses and nonprofits, aid to impacted industries, and support for essential workers. It will also provide resources for state, local, and Tribal governments to invest in infrastructure, including water, sewer, and broadband services.

Allocations by County
Illinois Counties (102)

Frequently Asked Questions

Legislative Analysis
National Association of Counties (NACo)
National League of Cities (NLC)

Federal Source
The White House
U.S. Department of the Treasury
Federal Transit Administration

Legal Associates