Funding Allocation
This funding will be released in two allotments, half in the next 60 days following enactment of the legislation and the second half 12 months after the first payment.
Metro Cities
For all municipalities with more than 50,000 residents, funds will be made available directly by the U.S. Treasury. Grant amounts will be calculated by using the CDBG formula that measures population + poverty + housing instability.
Small Cities Cap on Grant Amount*
The American Rescue Act includes a provision stating no city with less than 50,000 residents can receive a grant that is larger than an amount equal to 75% of their pre-pandemic budget, regardless of whether the estimates indicate an amount greater than that figure. This is not accounted for in the estimates because data on small city budgets is not systematically collected by any federal entity. We expect Treasury to provide a way for small cities and towns to certify what that cap amounts to for the municipality.
*This may affect the estimate we provided on March 11.
Other Provisions
Other important provisions include: the funding has no minimum population threshold for communities, can be used for replacing lost revenue, can be transferred between jurisdictions or to non-profit partners, and finally, does not expire until December 31, 2024.
