Minnesota is one step closer to beating COVID-19

Where is Minnesota’s American Rescue Plan money going?

In March of 2021, President Biden signed the American Rescue Plan (ARP) into law. This stimulus package, championed by Biden and progressives in Congress, supports our economy and helps our communities recover from COVID-19. In Minnesota, the American Rescue Plan invests a whopping $8.5 billion dollars in state and local projects

Now that it’s been almost nine months since the American Rescue Plan was enacted, let’s check in on where Minnesota’s ARP funds are going.

Locally distributed funds: $2.132 billion

About a quarter of Minnesota’s ARP funds are distributed directly to local governments. That includes cities, towns, and counties. The funds are intended to respond to local public health emergencies and support those in the community who have been hardest hit by the pandemic. Local governments may also use the funds to support the area’s economic recovery.

Within those guidelines, the specifics of how Minnesota’s towns, cities, and counties spend their ARP funds is up to them. That might include improvements to water infrastructure, broadband access, or even direct payments to essential workers. 

St. Paul, for example, is investing some of their funds in affordable housing and resources to address and prevent homelessness. Mankato plans to allocate a portion for construction projects, which will create good-paying jobs and rejuvenate beloved public spaces. In Clay County, some of the funds will go toward improving technology and renovating facilities in the courts. 

Those are just a few of the many, many projects in development across the state.

Curious about local ARP projects in your community? Check your city or county’s official website for more information or give your local leaders a call. 

State fiscal recovery funds: $2.833 billion

This is the amount of American Rescue Plan money that Governor Walz and legislative leaders get to decide how to invest. Earlier this year, Walz and legislators agreed to put $500 million toward immediate needs and $1.15 billion toward long-term COVID-19 relief. The rest will go toward replacing the state revenue that was lost to the COVID-19 pandemic.

In the short-term, Minnesota’s ARP funds are already making a big impact.

To respond to students’ and families’ educational needs, our leaders have approved investments in early education, special education, and summer learning programs. To keep our most vulnerable Minnesotans safe and healthy, Minnesota will also use ARP funds to improve residential facilities for seniors and people with disabilities. 

Visit this webpage for a complete list of approved ARP funding requests. 

Federal program funds: $3.505 billion

This final portion of Minnesota’s American Rescue Plan funding goes toward programs run by the federal government. And there are a lot of them.

For the most part, these federal programs focus on support for working families, students, and small businesses. That includes housing and childcare assistance, school grants, small business credit initiatives, vaccine distribution, and more.

Overall, these projects respond to Minnesota’s most urgent needs in recovering from the pandemic. Plus, the American Rescue Plan also leaves us better equipped to continue our recovery in the long run.

Thanks to President Biden, Governor Walz, and progressive leaders, we have the tools we need to build a better, stronger, more prosperous Minnesota together.