HomeMy WebLinkAbout8.1 Approval of the American Rescue Plan Act (ARPA) Funding Budget for Fiscal Year 2021-22STAFF REPORT
CITY COUNCIL
Page 1 of 5
Agenda Item 8.1
DATE:April 20, 2021
TO:Honorable Mayor and City Councilmembers
FROM:Linda Smith, City Manager
SUBJECT:Approval of the American Rescue Plan Act (ARPA) Funding Budget for Fiscal
Year 2021-22
Prepared by: John Stefanski, Assistant to the City Manager
EXECUTIVE SUMMARY:
The City Council will consider adopting a Resolution Approving the American Rescue Plan Act
(ARPA) Budget for Fiscal Year 2021-22 and Establishing a Fund to Track Related Expenditures.
Under the ARPA, the City will receive approximately $12,202,075, distributed in two equal
tranches by no later than June 2021 and June 2022, respectively. This item contemplates the
budget for the first tranche of funding which will coincide with Fiscal Year 2021-22.
STAFF RECOMMENDATION:
Adopt the Resolution Approving the American Rescue Plan Act Budget for Fiscal Year 2021-22
and Establishing a Fund to Track Related Expenditures.
FINANCIAL IMPACT:
Under the ARPA, the City will receive approximately $12,202,075, distributed in two equal
tranches by no later than June 2021 and June 2022, respectively. This total figure is based off a
March 8, 2021 projection for funding.
Allocations to cities under this program are calculated based on whether the city is a Community
Development Block Grant (CDBG) Entitlement City or a Non-Entitlement City. For Non-
Entitlement cities like Dublin, the funding allocation is based off population, using 2019 estimates
from the U.S. Census. This differentiation between Entitlement and Non-Entitlement Cities has
implications for the timing of the tranches. Entitlement Cities will receive direct payments from
the U.S Department of the Treasury. Funding for Non-Entitlement Cities will be distributed to the
State to make final disbursements to non-entitlement Cities. The State cannot change the
allocations or impose additional requirements and must send the money to Cities within 30 days
of receipt.
Under this framework, Staff estimates the City will receive the first tranche by June 11, 2021.
529
Page 2 of 5
Final funding amounts are being determined by the U.S. Department of the Treasury and may
change due to the possibility of using 2020 population data, which would likely have a positive
impact on the City’s overall allocation. This determination is expected by the end of this month at
the earliest.
DESCRIPTION:
ARPA Background and Overview
On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA). This
sweeping $1.9 trillion COVID-19 aid package includes direct funding for state and local
governments along with a myriad of other COVID-19 relief programs. Specifically, the ARPA
Coronavirus State and Local Fiscal Recovery Funds included $130.2 billion for cities and counties,
which will be split evenly between the units of government.
Eligible Spending Categories
As stipulated in the law, the City shall only use the funds to cover costs incurred by the City by
December 31, 2024. Eligible uses of funds include:
1)COVID-19 Response:Responding to the public health emergency with respect to COVID-
19 or its negative economic impacts, which include assistance to households, small
businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and
hospitality.
2)Premium Pay for Essential Workers: Responding to workers performing essential work
during the COVID-19 public health emergency by providing premium pay to eligible
workers of the city or by providing grants to eligible employers that have eligible workers
who perform essential work.
3)Local Government Revenue Replacement:Providing government services to the extent
of the reduction in revenue of the City due to the COVID-19 public health emergency
relative to revenues collected in the most recent full fiscal year of the City prior to the
emergency (FY 2018-19).
4)Infrastructure Investments: Making necessary investments in water, sewer, or
broadband infrastructure.
The City can elect to transfer funds to private nonprofit groups, public benefit corporations or
multistate entities involved in passenger or cargo transportation, and special-purpose units of
state or local government. Funds cannot be deposited into a pension fund.
Further regulations on eligible uses will be determined by guidance promulgated by the
Department of the Treasury.
Proposed Fiscal Year 2021-22 ARPA Budget
This item contemplates the budget for the first tranche of funding, estimated at $6,101,037.50
which will coincide with Fiscal Year 2021-22. Budgeting for the second tranche will take place as a
part of the Fiscal Year 2022-23 budgeting process as those funds will become available for use in
June 2022.
530
Page 3 of 5
This proposed budget focuses funding in the first and third eligible categories, helping the City
recover the costs of COVID-19 response which were funded by the City and not reimbursed by the
CARES Act, as well as compensate for the net negative impacts related to Parks and Recreation
program revenue losses. Based on the text of the law, and in consultation with the City Attorney,
Staff has determined these expenses are eligible under the ARPA.
Category 1: COVID-19 Response—$3,632,292
This Category includes reimbursements of General Fund COVID-19 response expenses which were
not captured by the CARES Act funding. In this category, Staff is proposing the following:
$1,421,461 to reimburse the City for funding the Small Business Microloan Program (Small
Business Assistance Fund) and the Alameda County CARES Act Matching Grant Program
and Small Business Recovery Grant Program (General Fund).
$300,000 in Fiscal Year 2021-2022 for anticipated COVID-19 related expenses like
enhanced janitorial services and the purchase of disinfecting supplies for City facilities.
$1,213,947 for future COVID-19 related Economic Development Programs to be reviewed
and approved by the City Council at a future City Council meeting. This amount is the
residual amount remaining after accounting for all other categorial reimbursements or
expenditures.
$163,251 to augment funding for certain Human Services Grantees who are providing
services eligible under ARPA. For the Fiscal Year 2021-22 grant cycle, eight applicants
were identified as providing services eligible under ARPA. Currently, Human Service
Grants are funded by a combination of Community Development Block Grant (CDBG) funds
and the City’s General Fund and Affordable Housing Fund. Given this new funding source
which replaces CDBG, General Fund, and Affordable Housing fund dollars, Staff will return
to the Human Services Commission to determine whether to adjust their recommended
funding allocation for the remaining 13 grant applicants.
Category 3: Local Government Revenue Replacement—$2,468,746
The remaining balance of the funds are budgeted to recoup the net negative losses from Parks and
Recreation program revenue over the duration of the pandemic. These net negative impacts are
$1,014,500 in Fiscal Year 2019-20 and $1,454,246 in Fiscal Year 2020-21.
Additional Considerations
The City will need to provide periodic reports to the Department of the Treasury providing a
detailed accounting for the uses of such funds. Staff anticipates further guidance on this process
prior to the disbursement of the initial tranche. Regardless, Staff is recommending the creation of
a new Fund to account for these monies, as indicated in the attached Resolution.
Lastly, the City will not know the final total funding amount until the U.S. Department of the
Treasury issues its guidance. Like the CARES Act process, Staff expects that the amount will
531
Page 4 of 5
change marginally. The Resolution grants the City Manager the authority to adjust the budget
based on the change in the final funding amount whether positive or negative.
Other ARPA Funding Programs
In the preparation of the proposed budget, Staff considered the various other programs which are
funded through the ARPA and which may benefit Dublin residents and businesses. A sample of
these programs include:
Coronavirus Capital Projects Fund
The ARPA created this $10 billion fund for “critical capital projects directly enabling work,
education, and health monitoring, including remote options, in response to the public health
emergency with respect to COVID-19.” This program will be administered by the State which will
receive $100 million plus a population-based allocation from $4.6 billion of the total fund.
Small Business Support
Paycheck Protection Program—Limited funding increase and expanded eligibility for Tax
exempt groups, larger non-profits, and online news publishers.
Restaurant Revitalization Fund—$28.6 billion to be administered by the Small Business
Administration. This program will provide grants to cover expenses relating to payroll,
mortgage and rent payments, and other operational costs.
State Small Business Credit Initiative—$10 Billion for funding support for businesses
owned by socially and economically disadvantaged people.
Housing Assistance
Emergency Rental Assistance—$21.6 billion for localities with a population of at least
200,000 (i.e., Alameda County). Funds can be used for financial assistance to eligible
households, including for rental and utility payments.
Homeowner Assistance—$9.96 billion Homeowner Assistance to be administered by the
State. Funds can be used to reduce mortgage principal amounts, assist homeowners with
mortgage and other housing payments, and reimburse state and local governments for
money spent to prevent housing losses due to COVID-19.
Homeless Assistance Grants—$11,184,000 to be administered by Alameda County.
Program funds can be used to provide rental assistance and supportive services, develop
affordable rental housing, acquire non-congregate shelter to be converted into permanent
affordable housing or to be used as an emergency shelter.
Resident Supports
Direct Payments to Residents--$45,245,424 for eligible Californians. Direct payments of as
much as $1,400 for an individual, $2,800 for joint filers, and $1,400 for each qualifying
dependent. Payments will begin to phase out for individuals with adjusted gross incomes
of $75,000 and would be zero for annual gross incomes of $80,000 or more. Those amounts
would be doubled for joint filers.
Tax Credits—Extensions to Earned Income, Dependent Care, and Child Tax Credits.
Extensions to SNAP and WIC Increases.
532
Page 5 of 5
Additional information regarding funding programs included in the ARPA can be found in a
summary prepared by Townsend Public Affairs, included with this Staff Report as Attachment 3.
Next Steps
Following City Council approval, Staff will execute this budget to ensure all funds are spent in
accordance with the funding guidelines. Staff will also return to the City Council for further
discussion on the Economic Development program elements which the proposed budget funds.
Budgeting for the second tranche of funds will take place during the Fiscal Year 2021-22 and
2022-23 budget process.
STRATEGIC PLAN INITIATIVE:
Not applicable.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
ATTACHMENTS:
1) Resolution Approving the American Rescue Plan Act Budget for Fiscal Year 2021-22 and
Establishing a Fund to Track Related Expenditures
2) Exhibit A to the Resolution – Coronavirus Local Fiscal Recovery Funds Budget
3) Townsend Public Affairs ARPA Summary
533
Attachment 1
Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 1 of 2
RESOLUTION NO. XX – 21
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING THE AMERICAN RESCUE PLAN ACT BUDGET
FOR FISCAL YEAR 2021-22 AND ESTABLISHING A FUND TO TRACK RELATED
EXPENSES
WHEREAS,in March 2021, President Biden signed into law the American Rescue Plan
Act, a $1.9 trillion COVID-19 aid package; and
WHEREAS,the American Rescue Plan Act included the Coronavirus State and Local
Fiscal Recovery Funds, which will provide the City approximately $12,202,075 in funding,
distributed in two equal tranches; and
WHEREAS,the City expects to receive its first tranche of approximately $6,101,037 by
June 2021; and
WHEREAS,all funds shall be expended by December 31, 2024 in accordance with the
American Rescue Plan Act, guidance developed by the U.S. Department of the Treasury, and
information included in the accompanying Staff Report.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby
approves the American Rescue Plan Act Budget for Fiscal Year 2021-22, attached hereto as
Exhibit A; and
BE IT FURTHER RESOLVED that the City Manager is authorized to make any
necessary, non-substantive changes to carry out the intent of this Resolution, including making
nominal adjustments to the budgeted amounts, based on the total final funding amount.
BE IT FURTHER RESOLVED that a new Fund be created to track and account for all
related expenses funded by the American Rescue Plan Act Coronavirus State and Local Fiscal
Recovery Funds.
PASSED, APPROVED AND ADOPTED this 20th day of April 2021, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
534
Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 2 of 2
_________________________________
City Clerk
535
AMERICAN RESCUE PLAN ACT
CORONAVIRUS LOCAL FISCAL RECOVERY FUNDS BUDGET
1 FY 2021‐22 BUDGET
2 Revenue
3 ARPA Tranche 1 6,101,038$
4
5 Expenditures
6 Category 1: COVID Response
7 A. City COVID Response Expenses to Date
8 1. COVID Related Expenses 533,632$
9 2. Small Business Microloan Fund Reimbursement 519,461$
10 3. ED GF Subsidy Reimbursement 902,000$
11 B. Ongoing City COVID Expenses 300,000$
12 C. Assistance to Small Businesses 1,213,947$
13 D. Assistance to Non‐Profits 163,251$
14 Subtotal 3,632,292$
15 Category 3: Revenue Replacement
16 A. FY2019‐20 Revenue Replacement 1,014,500$
17 B. FY2020‐21 Revenue Replacement 1,454,246$
18 Subtotal 2,468,746$
19
20 Total Expenses 6,101,038$
21 Surplus/(Deficit) ‐$
Attachment 2
Exhibit A to the Resolution
536
State Capitol Office ▪ 925 L Street • Suite 1404 • Sacramento, CA 95814 • Phone (916) 447-4086 • Fax (916) 444-0383
Federal Office ▪ 600 Pennsylvania SE • Suite 207 • Washington, DC 20003 • Phone (202) 546-8696 • Fax (202) 546-4555
Southern California Office ▪ 1401 Dove Street • Suite 330 • Newport Beach, CA 92660 • Phone (949) 399-9050 • Fax (949) 476-8215
Central California Office ▪ 744 P Street • Suite 308 • Fresno, CA 93721 • Phone (949) 399-9050 • Fax (949) 476-8215
Northern California Office ▪ 300 Frank Ogawa Plaza • Suite 204 • Oakland, CA 94612 • Phone (510) 835-9050 • Fax (510) 835-9030
AMERICAN RESCUE PLAN ACT SUMMARY
Updated March 8, 2021
STATE AND LOCAL AID
Overview
•The measure includes $360 billion to help state, local, tribal, and territorial governments
mitigate fiscal effects tied to the Covid-19 emergency, including:
o $195.3 billion for states and Washington, D.C.
o $130.2 billion for local governments.
o $20 billion for federally recognized tribal governments.
o $4.5 billion for territories.
•The measure would distribute $25.5 billion equally among states and the District of
Columbia. Other funds would be allocated based on each state’s share of unemployed
people.
•The measure would set 60-day deadlines to distribute most funds to state and local
recipients. A second tranche of funds would be distributed to localities 12 months after the
initial allocation. The Treasury Department could also withhold up to half of a state or
territory’s allocation for as long as 12 months based on its unemployment rate and require
an updated certification of its funding needs. Each state plus the District of Columbia would
receive at least $500 million.
•The measure also would provide funds to compensate D.C. for the money it would have
received as a state under the CARES Act, which grouped it in with territories. Democrats
estimated that a similar provision in a Covid-19 relief package from the 116th Congress
would have resulted in an additional payment of $755 million.
•Remaining state funds would be allocated based on the number of unemployed people.
•Funding for local governments would include $65.1 billion for counties, $45.6 billion for
metropolitan cities, and $19.5 billion for towns with fewer than 50 ,000 people.
•The Treasury Department would have to make most payments within 60 days of receiving
certification from state and local recipients describing their need and intended use for the
funds.
•States would have to distribute funds to smaller towns within 30 days of receiving a
payment from the department, with extensions permitted. States that miss the deadline
would have to pay back any undistributed funds. A town couldn’t receive more than 75%
of its budget as of Jan. 27, 2020.
Use of Funds
•State and local recipients could the funds to cover costs incurred by Dec. 31, 2024, to:
o Respond to the Covid-19 emergency and address its economic effects, including
through aid to households, small businesses, nonprofits, and industries such as
tourism and hospitality..
Attachment 3
537
o Provide premium pay to essential employees or grants to their employers. Premium
pay couldn’t exceed $13 per hour or $25,000 per worker.
o Provide government services affected by a revenue reduction during the pandemic.
o Make investments in water, sewer, and broadband infrastructure.
• State and local recipients could transfer funds to private nonprofit groups, public benefit
corporations or multistate entities involved in passenger or cargo transportation, and
special-purpose units of state or local governments.
• State and local recipients cannot deposit the money into a pension fund. States and
territories also couldn’t use their allocation to offset revenue resulting from a tax cut enacted
since March 3.
Capital Projects
• The measure includes $10 billion for the Treasury Department to make separate payments
to states, territories, and tribal governments to carry out capital projects to support work,
education, and health monitoring during Covid-19.
Additional Local Aid
• The measure would provide an additional $2 billion for eligible tribal governments and
“revenue sharing counties” to use for general government spending, with the exception of
lobbying.
• Eligible recipients would include counties that are the main providers of government
services in their area and that lost revenue due to changes in federal programs, as well as
the District of Columbia and several U.S. territories.
SMALL BUSINESS AID
Paycheck Protection Program
• The measure would increase funding and expand eligibility for the Paycheck Protection
Program, and would allow forgiveness for additional expenses.
• Program Funding: The measure would increase the program’s lending authority by $7.25
billion, to $813.7 billion, and appropriate the same amount for the Small Business
Administration (SBA) to guarantee additional loans.
• Tax-Exempt Groups: The measure would expand the eligibility rules to cover most other
types of tax-exempt groups, including 501(c)(5) labor organizations, 501(c)(7) social and
recreation clubs, and 501(c)(8) fraternal benefit societies. Religious educational groups
that might otherwise be barred under SBA rules would be permitted. 501(c)(4) social
welfare groups, such as AARP, the ACLU, Americans for Prosperity, and the National Rifle
Association, would still be prohibited.
• The additional tax-exempt groups couldn’t employ more than 300 employees per location
or spend more than $1 million annually or 15% of their time on lobbying activities.
• Larger Nonprofits: Some nonprofits that currently qualify for PPP loans, such as
501(c)(3) groups, can’t have more employees than the SBA’s size standards for the
relevant industry and are subject to the agency’s restrictions for affiliated entities.
• The measure would replace those rules, allowing 501(c)(3) groups with as many as 500
employees per physical location to participate without further restrictions.
• Online News Publishers: Internet-only news publishers that were previously ineligible
could receive PPP loans if they have 500 or fewer employees or a size set by the SBA per
location. They would have to certify that the funds will be used to support local news.
Attachment 4
538
• SBA affiliation rules and a ban on publicly traded companies would be waived for online
news outlets seeking loans.
• Loan Forgiveness: The measure would expand PPP loan forgiveness to include
payments made for premiums on behalf of individuals who qualify for COBRA health
insurance continuation coverage. The change would apply to loan forgiveness
applications received following the measure’s enactment.
Restaurant Grants
• The measure would provide $28.6 billion for a Restaurant Revitalization Fund to be
administered by the SBA.
• Eligible recipients would include restaurants, bars, food trucks, and caterers, including
businesses in airport terminals and tribally owned entities.
• Disqualified businesses would include those run by state or local governments, companies
that manage more than 20 locations including affiliates, live venues seeking grants under
the year-end Covid-19 relief package, and publicly traded companies.
• For 60 days following the measure’s enactment, $5 billion would be set aside for eligible
entities with gross revenue of $500,000 or less in 2019. The SBA would also have to
prioritize awards for small businesses owned by women, veterans, and socially or
economically disadvantaged individuals during an initial 21-day award period.
• Other grant funds would be awarded on a first-come, first-served basis.
• Grant amounts would cover the difference between an entity’s revenue in 2020 compared
with 2019. Awards would be reduced by amounts received through the Paycheck
Protection Program. Aggregate awards made to an entity and its affiliates couldn’t exceed
$10 million and would be limited to $5 million per location.
• Eligible expenses generally would include payroll costs, mortgage and rent payments,
supplies, normal food and beverage costs, and paid sick leave. Grants couldn’t be used
to pay fees exceeding 10% of a company’s annual net operating profits to investment
advisers of certain private funds with an ownership stake.
• Funds could be used through Dec. 31, or a date set by the SBA that’s no later than two
years after the measure’s enactment.
Disaster Loans
• Additional funding also would be made available for advance payments to eligible entities
under the SBA’s Economic Injury Disaster Loan (EIDL) program.
• The reconciliation measure would provide $15 billion for additional advance payments on
a staggered schedule, as follows:
o SBA would have to allocate $10 billion to covered entities that didn’t receive their
full eligible advance payments under the year-end relief package. Those entities
include recipients with 300 or fewer employees and economic losses of at least
30% over eight weeks compared with a similar period before the pandemic.
o The remaining $5 billion would be set aside to make new supplemental payments
of $5,000 to covered entities with 10 or fewer employees that had economic losses
of more than 50% during the covered period.
State Initiative
• The reconciliation measure would provide $10 billion for the State Small Business Credit
Initiative. The Treasury Department would have to set aside:
o $1.5 billion for states to support businesses owned by social and economically
disadvantaged people.
Attachment 4
539
o $1 billion for an incentive program to boost funding tranches for states that show
robust support for such businesses.
o $500 million to support small businesses with fewer than 10 employees.
• The department could set aside an additional $500 million for states to provide legal,
accounting, and financial advisory services. It could also transfer the funds to the
Commerce Department’s Minority Business Development Agency to provide similar
technical assistance.
• The Treasury Department could establish a multistate participation program. Covered
states could automatically approve small business entities that are already participating in
a similar state’s program.
• The department would have to complete all disbursements by Sept. 30, 2030. Any
remaining amounts would be rescinded
Other SBA Funding
• $1.25 billion in additional funding for SBA grants to live venues and other cultural
institutions under a program in the year-end relief package. Grant amounts would be
reduced by any loans received through the Paycheck Protection Program following the
enactment of the year-end package.
• $840 million in additional administrative funds for the SBA to carry out the Paycheck
Protection Program and other initiatives to aid small businesses during Covid -19.
• $390 million to administer the SBA’s disaster loan program and $70 million for the cost of
additional loans.
• $100 million for the SBA to establish a community navigator pilot program for small
businesses and $75 million for the SBA to promote community navigator services to small
businesses.
HOUSING AID
Rental Assistance
• The reconciliation measure would provide $21.6 billion for rental assistance payments
through the Treasury Department.
• Funds would be allocated to states and to localities with at least 200,000 people. Each
state plus the District of Columbia would receive at least $152 million. The measure also
would set aside $305 million for several U.S. territories and $2.5 billion for “high-need
grantees” based on their population of low-income renter households, rental market costs,
and employment changes since February 2020.
• The Treasury Department would have to ensure each grantee receives at least half of its
allocation within 60 days of the measure’s enactment.
• Grantees would have to use the funds to provide financial assistance to eligible
households, including for rental and utility payments. Total assistance provided to a
household under the measure and the year-end package couldn’t cover more than 18
months.
• Households would qualify for rental assistance if they have qualified for unemployment
benefits, received an eviction notice, or have household income that doesn’t exceed 80%
of the area median income, among other criteria.
• Funds provided to grantees under the measure would remain available through Sept. 30,
2025. The measure also would extend the use of rental assistance funds under the year -
end package through Sept. 30, 2022.
Attachment 4
540
Homeowner Assistance
• The measure would provide $9.96 billion to establish a Homeowner Assistance Fund at
the Treasury Department.
• The department would allocate funds to states, territories, and tribes to prevent
homeowner mortgage defaults, foreclosures, and displacements. Funds could be used to
Funds could be used to reduce mortgage principal amounts, assist homeowners with
mortgage and other housing payments, and reimburse state and local governments for
money spent to prevent housing losses due to Covid-19.
• Covered mortgages would include those with an unpaid principal balance at the time of
origination that was less than a loan limit set by the Federal Housing Finance Agency.
• Each state, along with the District of Columbia and Puerto Rico, would receive at least
$40 million. Additional amounts would be set aside for other U.S. territories and tribes.
• Funding recipients would have to set aside at least 60% of their allocation to assist
homeowners who make less than 100% of the local or national median income, whichever
is greater.
Emergency Housing
• The measure would provide $5 billion for emergency Section 8 Housing Choice Vouchers.
• The Housing and Urban Development Department would have to provide the vouchers
through public housing agencies to individuals and families who are currently or recently
homeless, and to those who are fleeing domestic violence, sexual assault, or human
trafficking.
• Public housing agencies couldn’t reissue the vouchers after Sept. 30, 2023.
• An additional $5 billion would be allocated to state and local governments to provide
supportive services for homeless and other at-risk individuals.
• Permitted expenditures would include acquiring non-congregate shelter units, such as hotel
rooms, that could be converted to permanent housing.
•
Other Housing Funds
• $750 million to provide housing assistance and community development services through
tribal grant programs.
• $100 million to support individuals living in rural Agriculture Department-subsidized
properties who have experienced income loss but aren’t receiving federal rental aid.
• $100 million for grants to housing counseling groups, including through Neigh borWorks
America.
FEMA
Disaster Relief
• The measure would provide $50 billion for the Federal Emergency Management Agency’s
Disaster Relief Fund to respond to Covid-19 and other major disasters and emergencies
declared by the president. Funding would remain available through September 30, 2025.
• The funding could also be used to provide financial assistance for pandemic -related
funeral expenses with a 100% federal cost share.
Emergency Food and Shelter Program
• The measure would provide $510 million, with $110 million set aside to provide
humanitarian relief to families and individuals encountered by the Homeland Security
Department.
Attachment 4
541
Firefighter Grants
• The measure would provide a combined $300 million for FEMA’s firefighter grant programs.
Emergency Management Performance Grants
• The measure would provide $100 million for FEMA’s Emergency Management
Performance Grants.
TRANSPORTATION
Transit Aid
• The measure would provide $35 billion for grants to transit agencies, which could use the
money for operating expenses including payroll costs and purchasing personal protective
equipment.
• The funding would include:
o $26.1 billion for Urbanized Area Formula Grants.
o $2.21 billion for urban area and rural area grantees that need additional assistance
because of the pandemic.
o $1.7 billion for Capital Investment Grants.
Airport Assistance
The bill would provide $8 billion in fiscal 2021 for airport sponsors, which generally refers to public
agencies and private owners of public-use airports.
• The bill would provide $8 billion in fiscal 2021 for airports, including airport concessions.
• Airports that receive funding would be required to retain at least 90% of personnel
employed as of March 27, 2020, through Sept. 30.
• The Transportation Department could provide a waiver for the requirement if it determines
that an airport is experiencing economic hardship or the requirement reduces aviation
safety or security.
Aviation Manufacturers Payroll Support
• The measure would provide $3 billion to create a payroll support program for aviation
manufacturers.
• The measure would allow a 50% federal cost-share to cover wages and benefits for
eligible employees for a maximum of six months. Employers would cover the other 50%
and would have to maintain compensation at their April 1, 2020, levels. It would apply to
a maximum of 25% of employees earning less than $200,000 a year. Employers couldn’t
use funds to provide backpay for returning rehired or recalled employees.
• Eligible employers would be required to demonstrate that they have involuntarily
furloughed or laid off at least 10% of their workforce or experienced a 15% decrease in
revenue in 2020 compared to 2019. They also would have to agree not to conduct layoffs
or reduce pay for eligible employees until Sept. 30 or the duration of the agreement,
whichever is later. Employers receiving other pandemic assistance, such as through the
Payroll Protection Program, wouldn’t be eligible.
Airline Payroll Support
Attachment 4
542
• The measure includes $15 billion for the airline industry, to help cover employee wages
and benefits. It would include similar terms from the previous tranches of airline payroll
support.
• Participating airlines and contractors couldn’t lay off workers until Sept. 30 or when the
assistance is exhausted, whichever is later. They’d also have to continue complying with
restrictions on stock buybacks, dividend payments, and executive pay.
Rail Funding
• The measure would provide $1.7 billion for Amtrak in fiscal 2021, including funds to restore
the frequency of long-distance routes.
FAA and TSA Employee Leave
• The measure would provide $13 million for an Emergency TSA Employee Leave Fund and
$9 million for an Emergency FAA Employee Leave Fund.
• Money would be used to cover paid leave for Federal Aviation Administration and
Transportation Security Administration employees, including those who: must quarantine
or care for family members due to Covid-19-related concerns, must care for children due
to school closures, or are receiving a Covid-19 vaccine.
• Employees would be eligible for paid leave based on their hourly rates through Sept. 30,
2021.
• Full-time employees couldn’t receive more than 600 hours of paid leave. Part-time and
seasonal employees would be eligible for the proportional equivalent of 600 hours of paid
leave as long as funding is available for reimbursement.
• The Covid-related leave wouldn’t be provided if biweekly payments would exceed $2,800.
It would be in addition to other paid leave and couldn’t be taken concurrently. Paid leave
taken would reduce the total service used to calculate any retirement benefit.
EDUCATION
• The measure would provide $122.8 billion for grants to states to support local educational
agencies in addressing learning loss.
• Local agencies would have to use at least 20% of the funding for summer learning or
enrichment, after-school programs, or extended-day or extended-year programs. The rest
could be used for a number of education-related expenses, including inspection and
improvement of school facilities to ensure adequate air quality, providing mental health
services, and technology purchases.
• The bill would direct the Education Department to use at least $800 million of the total to
identify homeless children and provide them with wrap-around services and other
assistance to facilitate school attendance.
• States that receive the grants couldn’t reduce their spending levels on education as a
proportion of their budgets during fiscal 2022 or 2023, compared with the average level
from fiscal 2017 through 2019. Restrictions would also apply to per-pupil spending
reductions in high-need and high-poverty school districts, compared with the state overall.
• School districts would have to publish a plan within 30 days of receiving funds to safely
return to in-person learning.
• The measure also would provide $39.6 billion for emergency financial aid grants at higher
education institutions. Funds could also be used to monitor and suppress the coronavirus
and for outreach to financial aid applicants regarding potential adjustments related to the
pandemic.
Attachment 4
543
• The Education Department would also receive:
o $850 million for support to outlying U.S. territories.
o $100 million for research on addressing learning loss related to the pandemic.
o $3.03 billion for grants and programming under the Individuals with Disabilities
Education Act.
o $2.75 billion for support to non-public schools.
o $190 million for grants to educational organizations serving American Indians,
Native Hawaiians, and Alaska Natives.
• Outside of the Education Department, the measure would provide:
o $850 million to the Bureau of Indian Education for support to schools and programs
it funds or operates and for tribal colleges and universities.
o $200 million to the Institute of Museum and Library Services for library
improvements.
o $135 million for grants through the National Endowment for the Arts.
o $135 million for grants through the National Endowment for the Humanities.
• Student Loans: The bill would exclude from taxable income any student loans discharged
between Dec. 31, 2020 and Jan. 1, 2026.
• For-Profit Institutions: The measure would also modify the “90/10” rule, under which for-
profit institutions that obtain more than 90% of their revenue from federal student aid
become ineligible for federal support. It would expand the rule to include additional
programs, including veterans’ benefits. The change would take effect for institutions for
their fiscal years beginning after Jan. 1, 2023.
VETERANS AFFAIRS
Funding for the Veterans Affairs Department would include:
• $14.5 billion for health care, which would include as much as $4 billion for veterans to
receive care outside the VA.
• $750 million for State Veterans Homes.
• $272 million for claims and appeals processing.
• $100 million for supply chain modernization initiatives.
Copayments and Cost Sharing
• The measure would provide $1 billion for the VA to waive health insurance copayments
and other cost-sharing expenses incurred by veterans from April 6, 2020, when the
department first paused medical billing, through Sept. 30, 2021.
• The VA would be directed to reimburse veterans for copayments made during that period.
Job Training
• The measure would also provide $386 million to create a rapid retraining program for
veterans who are unemployed because of the pandemic and who haven’t received VA
educational assistance or unemployment payments.
• The program would provide no more than 12 months of assistance for eligible veterans to
receive training for high-demand jobs or in high-technology programs. The program would
be limited to 17,250 veterans and would end after 21 months.
Attachment 4
544
• The VA would provide monthly benefit payments directly to eligible programs and a
monthly housing stipend to veterans. Programs would receive 50% of funding when the
veteran starts, 25% when they complete the program, and 25% when they find a job.
• The VA would also have to contract with a nonprofit organization to facilitate employment
for participants.
Employee Leave Fund
• The measure would create and provide $80 million for an Emergency Department of
Veterans Affairs Employee Leave Fund in the Treasury.
• Money would be used to cover paid leave for Veterans Health Administration employees,
including those who must quarantine or care for family members due to Covid-19-related
concerns, must care for children due to school closures, or are recovering because of
complications from immunizations.
• Employees would be eligible for paid leave based on their hourly rates through Sept. 30,
2021.
• Full-time employees couldn’t receive more than 600 hours of paid leave or $2,800 in a
biweekly pay period. It would be in addition to other paid leave and couldn’t be taken
concurrently. Any paid leave provided would reduce total service used to calculate
retirement benefits.
TAX PROVISIONS
Direct Payments
• The bill would provide another round of direct payments of as much as $1,400 for an
individual, $2,800 for joint filers, and $1,400 for each qualifying dependent.
• The payments would begin to phase out for individuals with adjusted gross incomes of
$75,000 and would be zero for AGIs of $80,000 or more. Those amounts would be doubled
for joint filers.
• Dependents would include full-time students younger than 24 and adult dependents.
Individuals who died before Jan. 1, 2021, wouldn’t be eligible for the payments.
• Payments would be based on 2019 or 2020 tax returns. The Treasury Department could
provide payments to individuals who haven’t filed based on return information available to
the department.
• It would direct the Treasury Department to pay U.S. territories to cover the costs of
providing the payments.
Earned Income Tax Credit
• The measure would expand the earned income tax credit for taxpayers without children
for 2021 by increasing the credit percentage and phase out thresholds.
• It also would allow taxpayers ages 19 and older without children to qualify, eliminating the
25 to 64 age range for the year. Individuals who are homeless or were in foster care could
claim the credit beginning at age 18, and full-time students could claim it beginning at age
24.
• Other changes to the EITC that would apply beginning in 2021 include:
o Eliminating a rule that bars individuals who have children without Social Security
numbers from claiming the childless EITC.
o Allowing individuals who are separated from their spouses to claim the EITC on a
separate return if they live with their child for more than half of the year.
Attachment 4
545
o Increasing the limitation on the EITC for individuals with a certain amount of
investment income to $10,000, from $3,650 in 2021, and adjusted for inflation.
• The measure would direct the Treasury Department to make payments to U.S. territories
for their EITC costs. The department would match up to three times the cost of the EITC
in Puerto Rico if it increases its current credit.
Child Tax Credit
• The measure would expand the child tax credit, which provides a credit of as much as
$2,000 for each child younger than 17, for 2021.
• The bill’s changes to the CTC would include:
o Making it fully refundable, meaning the entire credit could be provided as a refund
if it exceeds an individual’s income tax liability, instead of partially refundable under
current law.
o Increasing the maximum credit to $3,600 for each child younger than 6 and $3,000
for other children.
o Allowing it to be claimed for 17-year-olds.
• The increased credit amount would be phased out beginning at an adjusted gross income
level of $75,000 for individuals and $150,000 for joint filers. Once the credit reaches
$2,000, the current law phase-outs levels, $200,000 for individuals and $400,000 for joint
filers, would apply.
• The Treasury Department would have to establish a program to advance CTC payments
on a periodic basis beginning on July 1. The department would be directed to establish an
online portal to allow individuals to opt-out of receiving the advanced payments.
• The department would also have to make payments to U.S. territories to cover their CTC
costs, except for Puerto Rico, whose residents would file directly with the IRS.
Dependent Care
• The bill would temporarily increase the value of the child and depen dent care tax credit,
which covers 35% of care expenses of as much as $3,000 for one dependent or $6,000
for two or more dependents.
• The measure would, during 2021:
o Make the credit refundable.
o Increase the maximum allowable expenses to $8,000 for one depen dent and
$16,000 for two or more.
o Allow the credit to cover 50% of expenses.
o Begin phasing out the credit at $125,000, instead of $15,000.
• The measure would also exclude as much as $10,500 in employer-provided dependent
care from tax in 2021, instead of as much as $5,000.
Employee Retention Credit
• The measure would extend through Dec. 31 an employee retention credit established by
the CARES Act.
• It was expanded and extended to July 1 a previous law.
• The measure also would expand eligibility for the credit to new startups that were
established after Feb. 15, 2020, and companies if their revenue declined by 90% compared
to the same calendar quarter of the previous year. The credit would be capped at $50,000
per calendar quarter for startups
Paid Leave Credits
Attachment 4
546
• The bill would extend through Sept. 30 tax credits for employer-provided paid sick and
family leave, which were established under the Families First Coronavirus Response Act.
• The value of the credits would be increased to match the employer’s share of contributions
to defined benefit plans and registered apprenticeship programs.
• The measure also would:
o Increase the wages covered by the paid family leave credit to $12,000 per worker,
from $10,000.
o Cover as many as 60 days of paid family leave for self-employed individuals
instead of 50.
o Expand the paid leave credits, including for self-employed individuals, to cover
Covid-19 vaccinations or wait times for test results or diagnoses.
o Bar employers from receiving credits if their paid leave favors highly compensated
employees, full-time workers, or employees based on tenure.
Corporate Interest Expenses
• The measure would eliminate the ability of companies to allocate interest expenses on a
worldwide basis beginning in 2021. The election allows corporations to claim additional
foreign tax credits against their U.S. tax liability, according to a Congressional Budget
Office estimate.
Small Business Grants Exclusion
• Advance funds provided through the Small Business Administration’s Economic Injury
Disaster Loan program and restaurant grants created by the bill would be excluded from
gross income for tax purposes.
Business Losses
• The measure would extend rules relating to limitations on “excess business losses” for
noncorporate taxpayers for one additional year, through 2026.
• Under the Republicans’ 2017 tax overhaul, taxpayers were allowed deductions for
business-related losses up to a certain amount, which was later modified by the CARES
Act.
Executive Compensation
• Beginning in 2027, the limitation on deducting compensation for publicly traded companies’
five most highly paid executives would be expanded to include the next five additional
highly compensated employees.
Third Party Transactions
• The measure also would lower the threshold below which third party settlement
organizations don’t need to report certain transactions to $600, from $20,000.
LABOR PROVISIONS
The Senate version removed the provisions that would have raised the national minimum wage
to $15 per hour by 2025.
Unemployment Extensions
Attachment 4
547
• The measure would modify and extend several pandemic-related unemployment benefits
created under the CARES Act and extended under the year-end spending and aid
package.
• It would extend the extra $300, the Federal Pandemic Unemployment Compensation,
through Sept. 6. The House-passed version of the package would have increased the
payments to $400 and extended them through Aug. 29.
• The bill would extend through Sept. 6 other CARES Act jobless benefits slated to expire
on March 14, with changes that would include:
o Increasing the duration of Pandemic Unemployment Assistance (PUA) benefits to
as long as 79 weeks, from 50 weeks, for individuals who don’t qualify for regular
benefits.
o Extending to 53 weeks, from 24 weeks, benefits for those who’ve exhausted
regular benefits under the Pandemic Emergency Unemployment Compensation
program.
• The first $10,200 of unemployment benefits received would be excluded from certain
taxpayers’ adjusted gross income beginning in 2020. The provision would apply to
taxpayers with income that’s less than $150,000.
• It also would extend through Sept. 6:
o Federal payments to nonprofits and government agencies for 75%, increased from
50%, of the costs of providing unemployment benefits.
o Interest-free federal loans for state unemployment trust funds.
o Full federal funding to qualifying states for the Extended Benefit and work-sharing
programs.
o Full, instead of partial, federal funding for states to provide regular unemployment
benefits without a waiting period.
• The measure would provide $2 billion for the Labor Department to address fraud and
access to unemployment benefits. Funds could be used to provide grants to states and
territories to develop tools for identity verification and fraud detection and to accelerate
claims processing.
• It would exclude the additional $100 weekly jobless benefit for self-employed individuals
who weren’t eligible for PUA benefits, created under Public Law 116-260, from income for
eligibility purposes under Medicaid and the Children’s Health Insurance Program.
• The bill would modify and extend similar additional unemployment benefits for railroad
workers.
Workplace Safety
• The measure would provide $200 million for the Labor Department to carry out worker
protection activities related to the Covid-19 pandemic.
• Of that amount, at least $100 million would be allocated to the Occupational Safety and
Health Administration (OSHA). Funding would support OSHA enforcement in high-risk
sectors, such as meat processing and health care, and the Susan Harwood grant program,
which promotes workplace safety in higher education institutions and nonprofit
organizations.
Federal Employee Leave
• The measure would provide $570 million for an Emergency Federal Employee Leave Fund
to be administered by the Office of Personnel Management.
• The fund could be used to reimburse federal agencies for emergency leave taken by
civilian employees and postal workers, including if they have or are caring for someone
Attachment 4
548
with Covid-19, are looking after children during virtual classes, or are obtaining a Covid-19
vaccine.
• Paid leave under the measure couldn’t exceed 600 hours per employee and would have
to be used by Sept. 30. The measure would cover some District of Columbia employees
and exclude military personnel.
• The measure also would extend through Sept. 30 reimbursements for federal contractors
that provide paid leave to employees or subcontractors who can’t work because of Covid-
19. The authority is set to expire on March 31.
Other Labor Provisions
• The bill would establish a presumption that a Covid-19 diagnosis is work-related and would
authorize benefits, including disability, medical, and survivor benefits for federal and postal
employees. It would cover employees who worked and contracted Covid-19 during a
three-year period starting Jan. 27, 2023, including federal workers who had engaged with
patients or members of the public.
• The provision wouldn’t apply to full- or part-time employees teleworking.
HEALTH CARE
Medicaid Expansion
• Covid-19 Coverage: Covid-19 vaccines and treatments would be covered until a year
after the pandemic ends at no cost to beneficiaries under Medicaid and the Children’s
Health Insurance Program. The federal medical assistance percentage (FMAP) would be
increased to 100% for vaccine costs during that period.
o Vaccines and treatment would also be covered for the uninsured. Outpatient drugs
used for Covid-19 treatment would be included in the Medicaid Drug Rebate
Program.
• Coverage Expansions: The measure would increase a state’s FMAP by 5 percentage
points for two years if it expands Medicaid to cover the newly eligible adult population
under the Affordable Care Act. The provision is intended to encourage the 12 states that
haven’t expanded the program to do so.
o The measure also would allow states, for five years, to provide full Medicaid benefits
to eligible pregnant women for a year after giving birth.
o It also would increase the FMAP for various services, including:
▪ Providing an 85% FMAP for the first three years of covering mobile crisis
intervention services for mental health or substance use disorders, which
would expire after five years.
▪ Providing a 100% FMAP for two years for services received through an
Urban Indian Organization or Native Hawaiian Health Center.
▪ Increasing a state’s FMAP by 10 percentage points for home and
community-based services for one year.
• Drug Rebates: The measure would end, in 2024, a cap on the rebate that drug companies
provide to Medicaid, which is currently limited to 100% of the average manufacturer price.
Once that cap is reached, drug makers can raise their prices without increasing the net
rebates that must be paid.
Health-Care Funding
• Funding for the Health and Human Services Department to respond to the pandemic
would include:
Attachment 4
549
o $47.8 billion for testing and tracing activities.
o $8.5 billion for vaccine activities at the Centers for Disease Control and Prevention.
o $7.66 billion to expand the public health workforce, including grants to state, local,
and territorial health departments.
o $7.6 billion for community health centers.
o $6.09 billion for tribal health programs.
o $6.05 billion to support manufacturing and purchasing vaccines.
o $3 billion for block grant programs under the Substance Abuse and Mental Health
Services Administration.
o $1.75 billion for genomic sequencing and surveillance.
o $800 million for the health workforce.
o $750 million for CDC global health activities.
o $500 million for the Food and Drug Administration to continue evaluating Covid-19
vaccines and therapeutics.
o $500 million for CDC data modernization and forecasting.
o The measure also would provide$8.5 billion for rural health-care providers for
expenses and lost revenue related to Covid-19, $250 million for “strike teams” to
assist skilled nursing facilities and $200 million for infection control support at those
facilities.
• The measure removed a provision that would have allocated $1.8 billion for testing and
mitigation activities in congregate settings, such as prisons, long-term care facilities, and
residential treatment facilities.
Medicare Changes
• The measure would allow the Centers for Medicare and Medicaid Services to waive a
requirement during the pandemic that ambulance services include transportation to a
hospital to receive Medicare payments, if they didn’t transport the patient because of Covid-
19-related protocols.
• It also would require CMS to reinstate a rural floor for the wage index that applies to
hospitals in all-urban states. It wouldn’t be applied in a budget-neutral manner.
ACA Tax Credits
• The measure would expand the Affordable Care Act’s premium tax credits for health
insurance purchased through an exchange.
• The law provides refundable credits for households with income that’s 100% to 400% of
the federal poverty level (FPL). The law caps premium costs based on a percentage of
income, and the credit covers any amount above that cap up to the cost of a “benchmark”
plan.
• For 2021 and 2022, the bill would eliminate premiums for individuals at 150% of the FPL
or less, and reduce premiums for all other households. It also would make households
above 400% of the FPL eligible, with a premium cap of 8.5% of income. The premium
caps currently range from about 2% to 9.8%, and are adjusted annually for inflation.
• The measure would also allow taxpayers who receive unemployment compensation in
2021 to be eligible for the credit without any premiums, by disregarding any income above
133% of the FPL.
• The measure also wouldn’t allow excess premium credits to be recaptured in 2020.
Cost-Sharing Subsidies
• The bill would allow individuals who receive unemployment compensation in 2021 to qualify
for reduced cost-sharing under the ACA. The law requires insurers to reduce out-of-pocket
Attachment 4
550
costs, such as copays and deductibles, for enrollees whose income is between 100% and
400% of the FPL and who enroll in a silver plan through the law’s exchanges.
• The measure would disregard income that exceeds 133% of the FPL for purposes of
determining the cost-sharing reduction amounts.
COBRA Coverage
• The measure would subsidize 100% of premiums for individuals eligible for COBRA
continuation coverage if they lose their job.
• The individual wouldn’t have to pay any premiums, and the employer or health plan could
claim a refundable tax credit against its Medicare payroll tax liability for the cost of the
premiums.
• The premium assistance under the measure would be available through Sept. 30 for
individuals who were involuntarily separated from their jobs or had their hours reduced.
• It wouldn’t be available once an individual becomes eligible for coverage under another
group health plan or Medicare. A $250 penalty could be imposed if individuals don’t notify
the plan when they are no longer eligible, or as much as 110% of the premium assistance
due after they were no longer eligible for a fraudulent failure to notify.
TANF Funding
• The measure would provide $1 billion for a Pandemic Emergency Assistance Fund under
the Temporary Assistance for Needy Families (TANF) program.
• The bulk of the funding would be allotted to states and Washington, D.C., based on the
number of children in the state and its spending for assistance in 2019. States could use
a maximum of 15% of funding for administrative purposes.
• The remaining 7.5% would be allotted to territories and American Indian tribes. Funding
would be exempt from the cap on total TANF payments to the territories.
Child Care
• The measure would provide about $24 billion for grants to child care providers to use for
payroll, rent, personal protective equipment, mental health support, and other needs. They
would have to provide tuition relief to families and couldn’t furlough or reduce pay for
employees.
• The Child Care and Development Block Grant, a discretionary program that subsidizes
child care for low-income families, would receive $15 billion. The bill would allow funds to
be used for essential workers regardless of income.
• Funding for the Child Care Entitlement to States, a mandatory program that subsidizes
child care for low-income families, would be increased to $3.55 billion per year, from $2.92
billion.
• Head Start, which supports preschool for low-income children, would receive an additional
$1 billion.
Defense Production Act
• The measure would provide $10 billion to use the Defense Production Act to purchase,
produce, and distribute medical supplies and equipment related to Covid -19. That would
include tests, face masks, personal protective equipment, and drugs and vaccines to treat
or prevent Covid-19.
• Under the DPA, the president can require manufacturers to prioritize contracts related to
national defense and other emergencies. It also authorizes the president to allocate scarce
goods and provide incentives such as loans and contracts to help expand production.
Attachment 4
551
Other HHS Programs
• $4.5 billion for the Low-Income Home Energy Assistance Program.
• $1.43 billion for programs under the Older Americans Act, including $750 million for
nutrition programs.
• $852 million for the Corporation for National and Community Service, including $620
million for AmeriCorps.
• $450 million for programs under the Family Violence Prevention and Services Act,
including $198 million for grants to support survivors of sexual assault.
• $425 million for programs under the Administration for Children and Families that provide
direct services to children as needed for pandemic-related costs.
• $350 million for programs under the Child Abuse Prevention and Treatment Act
• $50 million for the Title X Family Planning program.
AGRICULTURE & NUTRITION
• The measure would extend a 15% increase to monthly benefits under the Supplemental
Nutrition Assistance Program (SNAP) through Sept. 30. Created by the year-end spending
and coronavirus response package, the increase is scheduled to lapse on June 30.
• The package also would provide $1.15 billion to states for SNAP administration, as well
as $1 billion for grants for nutrition assistance programs in U.S. territories.
• The measure would provide $490 million to the Agriculture Department to increase the
amount of the cash-value voucher provided under the Special Supplemental Nutrition
Program for Women, Infants, and Children (WIC) to as much as $35 during the pandemic.
Participating states could apply the increase for as long as four months after opting in. The
increased authority for both states and the department would end on Sept. 30.
• The measure also would provide $390 million to increase participation in WIC through
outreach and program modernization.
• It would direct the Agriculture Department to reimburse emergency shelters under the
National School Lunch Program for meals provided to individuals younger than 25 who
receive services there.
• It would extend the Pandemic Electronic Benefit Transfer (EBT) program, established by
the Families First Coronavirus Response Act, through any school year or summer period
following an academic year during a designated public health emergency. The program,
which allows for food aid to be provided to families during school closures, had been
limited to fiscal 2020 and 2021 and to school year 2020-2021. It would also include Puerto
Rico, American Samoa, and the Northern Mariana Islands in the program.
Other USDA Programs
• The measure would appropriate $4 billion to the Agriculture Department to purchase and
distribute food and agricultural commodities, including seafood, and to make grants and
loans to small and midsized food processors and distributors.
• From that total, the department would use:
o $300 million for monitoring and surveillance of animals susceptible to Covid-19
transmission.
o $100 million to reduce the amount of overtime meat, poultry, and egg inspection
costs at small establishments.
• The measure would provide $500 million for an Agriculture Department emergency pilot
grant program, supporting organizations providing Covid-19-related services in low-
income rural areas.
Attachment 4
552
• The package also would appropriate such sums as may be necessary for loan
modifications and payments to address “longstanding and widespread discrimination
against socially disadvantaged farmers and ranchers” in Agriculture Department
programs. The department could pay as much as 120% of each such farmer or rancher’s
debt on loans it made or guaranteed.
• It would provide $1.01 billion for grants and loans to improve land access for socially
disadvantaged farmers, ranchers, and forest landowners, as well as scholarships,
outreach, financial training, and other technical assistance.
• The measure would also provide $800 million for Food for Peace grants.
PENSION PROVISIONS
Multiemployer Pensions
• The measure would establish a fund for the Pension Benefit Guaranty Corporation
(PBGC) to provide financial assistance to struggling multiemployer pension plans. It would
appropriate “such amounts as are necessary” from the general fund to cover the costs of
the assistance, which plans wouldn’t have to repay.
• The assistance would cover all benefits due from the bill’s enactment through 2051, with
generally no reduction to a beneficiary’s accrued benefit.
• A plan would be eligible for assistance if it meets any of the following:
o Is in critical and declining status, the most severe of several “zones” used to
classify plans’ financial distress, in any plan year beginning in 2020 through 2022.
o Is certified to be in the critical zone in any of those years with additional markers
of distress, such as the ratio of assets to liabilities and active to inactive
participants.
o Is insolvent and hasn’t been terminated as of the bill’s enactment.
o Has been approved to suspend benefit payments as of enactment.
• Applications for assistance would have to be submitted by Dec. 31, 2025.
• The bill would also:
o Allow plans to retain their 2019 funding zone designation for 2020 and 2021, with
an exception for some plans that enter the critical zone in that period. Plans in
endangered or critical status in 2020 or 2021 to extend their rehabilitation periods
for an extra five years.
o Permit plans to amortize investment and other losses incurred after Feb. 29, 2020,
over 30 years instead of 15.
o Set plan premiums at $52 per participant beginning in 2031. The rate would be
adjusted using the national average wage index after that.
Pension Smoothing
• The measure would extend and modify “pension smoothing,” which increases the interest
rates used to calculate pension fund liabilities, allowing companies to contribute less
money to pension plans in the short term. The contributions are tax deductible, so lower
payments would increase taxable income and federal revenue.
• The tactic has been used to help pay for previous laws, including the 2015 Bipartisan
Budget Act (Public Law 114-74), which imposed higher rates through 2021 that were
phased down by 2023.
• The bill would extend the higher rates through 2026, after which they would phase down
by 2030. The measure would also impose a 5% floor on the interest rates used in the
calculation.
Attachment 4
553
Other Pension Provisions
• The measure would set previous funding shortfalls in single-employer plans to zero and
extend to 15 years, from seven, the amortization periods for shortfalls beginning in 2020.
The measure would allow plan sponsors to apply the extended period for the 2019 plan
year.
ADDITIONAL PROVISIONS
• $3 billion for the Economic Development Administration’s Economic Adjustment
Assistance Program was removed from the bill.
• Broadband: The measure would create an “Emergency Connectivity Fund” in the U.S.
Treasury and appropriate $7.17 billion into it to cover the purchase of broadband service
and devices by schools and libraries for use by students, staff, and patrons at other
locations.
• Consumer Protection: The measure would provide $50 million for additional consumer
product safety inspectors at U.S. ports of entry during the pandemic, with a particular focus
on products related to Covid-19.
• EPA Programs: The legislation includes $100 million for the Environmental Protection
Agency, which would be split among grants to promote environmental justice and grants
under the Clean Air Act.
• GAO: The Government Accountability Office would receive $77 million.
• Oversight Committee: The Pandemic Response Accountability Committee would
receive $40 million to oversee the use of Covid-19 relief funds. The panel is part of the
Council of the Inspectors General on Integrity and Efficiency and includes IGs and acting
IGs from around the government.
• NIST: $150 million would be provided for the National Institute of Standards and
Technology to fund research, development, and testbeds. There would be no cost-sharing
requirements.
• CPB: It would provide $175 million to the Corporation for Public Broadcasting to maintain
services and preserve small and rural stations, including for grants to public
telecommunications entities.
• Fish & Wildlife: The measure would provide $95 million to the U.S. Fish and Wildlife
Service, which would be used for wildlife inspections, care of captive endangered species,
and research related to wildlife disease outbreaks.
• Consumer Protection: The measure would provide $50 million for additional consumer
product safety inspectors at U.S. ports of entry during the pandemic, with a particular focus
on products related to Covid-19.
• Customs User Fees: The measure would extend certain customs user fees and rates for
merchandise processing fees to Sept. 30, 2030, from Oct. 21, 2029.
• Cybersecurity & IT Funds: The package would provide:
o $1 billion for the General Services Administration’s Technology Modernization
Fund, which was established to upgrade federal agency IT systems.
o $650 million for the Homeland Security Department’s Cybersecurity and
Infrastructure Security Agency to mitigate cybersecurity risks.
o $200 million for the U.S. Digital Service, a White House unit that provides IT support
to federal agencies.
o $150 million for the GSA’s Federal Citizen Services Fund, which is used to support
public access to federal information and services.
Attachment 4
554
FOREIGN ASSISTANCE & STATE DEPARTMENT
The measure’s funding for foreign assistance and the State Department would include:
• $3.75 billion for State Department HIV/AIDS prevention programs to address Covid-19,
most of which would go to the Global Fund to Fight AIDS, Tuberculosis and Malaria.
• $3.09 billion for U.S. Agency for International Development Covid-19 response and disaster
relief.
• $930 million for Covid-19 prevention and response, including activities to address the
economic effects of the pandemic.
• $905 million for USAID global health activities, including a contribution to a multilateral
vaccine development partnership.
• $580 million for multilateral assistance, including the United Nations’ Global Humanitarian
Response Plan for Covid-19. $500 million for migration and refugee assistance.
Attachment 4
555
Item 8.1
Approval of the ARPA Funding
Budget for FY 2021-22
April 20, 2021
Background
•On March 11, 2021, President Biden signed into
law the American Rescue Plan Act (ARPA).
–Sweeping $1.9T COVID-19 aid package
–Included a myriad of COVID-19 relief programs
•Funding for restaurants, small businesses, housing
assistance, support to residents through direct cash
payments and expanded social safety net programs.
–Specifically allocated $130.2B for the Coronavirus
State and Local Fiscal Recovery Funds.
Local Fiscal Recovery Fund-Overview
•Under ARPA, City will receive approx. $12.2M in
total funding, for certain eligible expenses.
–Distributed in two equal tranches
–No later than June 2021 and June 2022
•Dublin’s allocation based off population
•Final funding amounts are being determined by U.S.
Department of the Treasury
–Amount may change due to possibility of using new
2020 Census data.
–Determination is expected by the end of this month.
Eligible Spending Categories
1.COVID-19 Response
–Responding to the public health emergency with respect to COVID-19 or its negative economic impacts, which include assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.
2.Premium Pay for Essential Workers
–Providing premium pay to eligible workers of the city or by providing grants to eligible employers that have eligible workers who perform essential work.
3.Local Government Revenue Replacement
–Providing government services to the extent of the reduction in revenue of the City due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year of the City prior to the emergency (FY 2018-19).
4.Infrastructure Investments
–Making necessary investments in water, sewer, or broadband infrastructure.
Eligible Spending Categories, 2
•Can only use the funds to cover costs incurred by December 31, 2024.
•City can transfer funds to:
–Private nonprofit groups
–Public benefit corporations or multistate entities involved in passenger/cargo transportation
–Special-purpose units of state/local government
•Cannot deposit funds into a pension fund.
•Further regulations on eligible uses will be determined by guidance from the Treasury Department.
–Proposed budget is in alignment with the text of the law.
Proposed Budget:
Category 1—COVID-19 Response
•$1,421,461 to reimburse the City for funding:
–Small Business Microloan Program (Small Business
Assistance Fund)
–Alameda County CARES Act Matching Grant
Program (General Fund)
–Small Business Recovery Grant Program (General
Fund)
•$533,632 to reimburse General Fund COVID-
19 response expenses not captured by CARES
Act funding.
Proposed Budget:
Category 1—COVID-19 Response
•$300,000 in Fiscal Year 2021-2022 for anticipated
COVID -19 related expenses like enhanced janitorial
services and the purchase of disinfecting supplies for City
facilities.
•$1,213,947 for future COVID-19 related Economic
Development Programs to be reviewed and approved by
the City Council at a future City Council meeting. This
amount is the residual amount remaining after accounting for all
other categorial reimbursements or expenditures.
•$163,251 to augment funding for certain Human Services
Grantees who are providing services eligible under
ARPA.
Proposed Budget:
Category 3—Revenue Replacement
•$2,468,746 to recoup the net negative losses
from Parks and Recreation program revenue
over the duration of the pandemic.
–$1,014,500 in FY 2019-20
–$1,454,246 in FY 2020-21
Other Considerations
•City will need to provide periodic reports to Department of the Treasury accounting for the use of these funds.
–Resolution creates a new Fund for this purpose.
•Total funding amount may change marginally.
–Resolution grants the City Manager to adjust the budget based on the change in final funding amount whether positive or negative.
•Budgeting for second tranche of funds will take place during the Fiscal Year 2021-22 and 2022-23 budget process.
Staff Recommendation
•Adopt the Resolution Approving the American
Rescue Plan Act Budget for Fiscal Year 2021-22
and Establishing a Fund to Track Related
Expenditures.
Questions and Discussion
Proposed FY 2021-22 ARPA Budget