The American Rescue Plan Act, passed in 2021, provided a total of $130.2 billion to cities and counties to use through December 31, 2024. The program is administered by the U.S. Treasury Department. A key provision included funding local governments, which will receive $130.2 billion – half to cities and half to counties.
The deadline for spending the money is looming.
Many municipalities and school districts have already spent the money. It appears that most of that money went early for immediate needs and contributions to local emergency service organizations.
That's a good thing.
Officials who still have that cash waiting to be spent need to be careful to define needs versus wants. Take some time to define those needs. If you spend your American Rescue Plan money on wants, that will cause those needs to be funded by the taxpayers later.
Spend it because you have clearly defined a need that taxpayers will be forced to fund anyway. Don't wait until the last minute to make your plans. You're already late, don't make it worse by spending that money without thinking about the taxpayer.
Needs now, wants later. If you need it, spend it on that need. If you want it, are you spending that money wisely now or just spending it because you can – or must?
Officials can't just give that money back to the taxpayers but they can spend it on a need now that would give the taxpayers a break later.
Give the taxpayers a break whenever you can.
Wants can be negotiated later. Just make sure you clearly define the difference between the two.