There are billions of dollars of emergency funding headed to our state to support communities affected by the pandemic. 

We’re taking a closer look at the latest guidance from the U.S. Department of Treasury on usage of these funds and how Michigan philanthropy can help communities prepare for the influx of funding. 

Last week the Department of the Treasury announced the launch of the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021 (ARPA), to provide $350 billion in emergency funding for state, local, territorial and Tribal governments.

Our state alone will receive close to $11 billion in emergency funding through state and local fiscal recovery funds to support communities and populations hardest hit by the pandemic. 

That is in addition to the $3.7 billion in Elementary and Secondary School Emergency Relief (ESSER) funds that will go to school districts.

The new guidance issued by the Treasury outlines how State and Local Fiscal Recovery Funds may be used. 

Funding can be used to:

•    Address health disparities and the social determinants of health, through funding for community health workers, public benefits navigators, remediation of lead hazards and community violence intervention programs. 

•    Invest in housing and neighborhoods, such as services to homelessness, affordable housing development, housing vouchers and residential counseling and housing navigation assistance.

•    Address educational disparities through new or expanded early learning services, providing additional resources to high-poverty school districts and offering educational services like tutoring or afterschool programs as well as services to address social, emotional and mental health needs.

•    Promoting healthy childhood environments, including new or expanded high quality child care, home visiting programs for families with young children.

CMF’s Government Relations Public Policy Committee (GRPPC) has worked to address the pandemic’s immediate and ongoing impacts, especially the long-standing inequities it has laid bare.

In April, the GRPPC approved a resolution to adopt several of the Michigan Philanthropy COVID-19 Working Group’s Building an Equitable Future Together policy framework priorities for CMF staff to focus advocacy engagement efforts.

Many of the policy priorities include areas where federal funding from the ARPA could be used.

“CMF’s Government Relations Public Policy team will be working to create and understand alignment between the GRPPC’s adopted priorities and the priorities of state lawmakers working to develop plans for appropriating some of the federal funding,” Regina Bell, director of government relations and public policy at CMF said.

GRPPC’s adopted policy priorities include the following:

•    Ensure equitable access to COVID-19 vaccines so that vulnerable populations and impacted communities are prioritized. 

•    Prioritize state-supported behavioral health services. This includes mental health supports for parents and adult caregivers who continue to feel the long-term impacts of the pandemic and social-emotional supports for children.  

•    Address the digital divide. 

•    Preserve and grow child care slots and subsidies for families with low incomes. This includes flexibilities to ensure innovative use of federal funds to grow quality childcare slots, increasing provider reimbursement rates and emphasizing the importance of licensed home programs. 

•    Provide high-quality afterschool and extended learning time options for families beyond the school day—including wraparound services that target under resourced populations with limited options. 

•    Support frontline workers including community health workers, childcare providers, teachers, etc.

•    Help stabilize small businesses and nonprofits, including Minority/Women Business Enterprises (M/WBE) and nonprofits led by people of color. 

Bell shared that CMF’s Government Relations Public Policy team is on hand to support our CMF community and can help in making connections with local units of government and presenting before foundation boards to highlight information regarding the ARPA.

In addition to the state and local fiscal recovery funding through the ARPA, Bell shares that there are other sizeable investments coming in the areas of childcare, rental and utility assistance, mortgage assistance and vaccine administration. 

Bell noted how CMF members can engage when it comes to preparing for the influx of federal funding to best support the communities they serve. 

“This is an opportunity to bring forward innovative uses for the flexible dollars. Michigan philanthropy can be connecting with their local officials including school districts to highlight work they have funded and ensure that their nonprofit partners are at the table. Additionally, with the flexibility of uses, they can be helpful in ensuring community feedback is included in deciding innovative uses that meet community needs,” Bell said. 

Want more?

Questions? Connect with CMF’s Government Relations Public Policy Team.

Read the Department of the Treasury’s Coronavirus State and Local Fiscal Recovery Funds fact sheet.

Read the American Rescue Plan Act of 2021 Fiscal Brief.