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The American Rescue Plan Provides Direct Support to Towns and Cities Across Eastern Connecticut

March 11, 2021
Press Release
Courtney releases updated funding allocations for eastern Connecticut towns through the law signed today by President Biden

WASHINGTON, DC — Today, Congressman Joe Courtney (CT-02) released detailed information on how the American Rescue Plan Act (H.R. 1319) will help support critical local services and jobs through direct support to cities and towns throughout eastern Connecticut. The final law, signed today by President Biden, will provide approximately $2.6 billion in relief aid to the State of Connecticut, as well as approximately $250 million in aid to towns and cities in the second district.

For the total projected for the district, approximately $109 million is estimated in base support for towns and cities. Click here to see the list of updated allocations for cities and towns in CT-02. Another $142 million is projected from funding allocated to counties that will be distributed to municipalities based on population. 

“Our local towns have been all hands on deck during the pandemic, and the American Rescue Plan directs resources straight home to our communities that will support jobs and essential public services,” said Congressman Courtney. “Communities across the country have been desperate for this support, and that’s why you see such strong support for the American Rescue Plan from bipartisan groups of Mayors and local officials, and from working Americans from every walk of life and across the political spectrum. Here in eastern Connecticut, our police officers and firefighters have been asked to step up to help manage vaccination efforts on top of their already difficult jobs, public works projects and essential public services like community health have taken on a whole new level of importance, and it’s happening while towns have watched their budgets erode drastically due to the pandemic. Help is on the way to our local towns, and to our local police departments, firehouses, public schools and more. The American Rescue Plan will provide eastern Connecticut with over $250 million in local assistance, and I was proud to help get the relief across the finish line for our communities.” 

The American Rescue Plan Act takes bold action to protect critical local services jobs in cities and towns across America, all of whom are facing steep budget shortfalls and eroded tax bases amid the ongoing pandemic. The bill will provide funding to help support essential public services and jobs from firefighters and police officers, to teachers and public works employees across eastern Connecticut. The bill also authorizes funding for towns and cities to support public health protection efforts, and to slow the spread of the virus so that schools and businesses can remain open, and the economic recovery can continue. To review the list of updated baseline allocations for eastern Connecticut cities and towns under H.R. 1319, click here.  

Among its many provisions, the American Rescue Plan Act will: 

Provide an Estimated $250 Million in Relief Aid to Eastern Connecticut Towns and Cities

  • The state of Connecticut is expected to receive approximately $2.6 billion in state relief aid, and $1.7 billion in local government funding. Local government funding will be dispersed through the federal Community Development Block Grant (CDBG) program. 
  • Cities and towns in CT-02, specifically, are expected to receive more than $109 million in baseline relief aid. For an updated list of base allocations for cities and towns throughout CT-02, click here.
  • The law also provides funding to counties. Connecticut is one of a few states with no county government, so the law provides a mechanism for this funding to be distributed proportionally to towns and cities based on their share of a county’s population. Based on population estimates, Second District towns and cities could receive another $142 million.  
  • Final allocates from these funding sources will be determined by the State of Connecticut in the coming weeks. 
  • The bill stipulates that the first tranche of direct support for cities and towns is to arrive no later than 60 days after the date under which the certification is provided to the Secretary of the Treasury. The second tranche will be paid no earlier than 12 months after the date on which the First Tranche amount is allocated. 

Enable Towns to Use Funding to Support Critical Services, Save Jobs, and Protect Public Health

  • The American Rescue Plan Act authorizes municipalities to use relief funding to respond to the COVID-19 public health emergency and its negative economic impacts, including assistance to households, small businesses and non-profits, as well as aid to impacted industries such as tourism, travel, and hospitality. 
  • H.R. 1319 also enabled towns and cities to use relief funding to support workers performing essential duties during the COVID-19 pandemic like police officers, firefighters, teachers, and others. Municipalities are able to use American Rescue Plan funding to provide these essential workers with premium pay, or to provide grants to eligible employers that have eligible workers performing essential duties. 
  • The bill allows municipalities to use funding to support the continued delivery of essential government services that have been impacted by a reduction in revenue amid the pandemic. 
  • H.R. 1319 also enables towns and cities to use funding to make necessary investments in water and sewage infrastructure, as well as broadband internet infrastructure. 
  • The American Rescue Plan Act stipulates that funding may not be used for tax cuts, for to support public pension funds. 

Learn More Tomorrow

  • Tomorrow morning at 9:30am ET, Rep. Courtney will convene a group of municipal leaders from Southeastern Connecticut to discuss the new round of federal resources bound for eastern Connecticut towns and cities following passage of the American Rescue Plan Act. 
  • Courtney will be joined by Mayor Michael Passero (New London), First Selectman Danielle Chesebrough (Stonington), First Selectman Ron McDaniel (Montville), First Selectman Mary Bylone (Colchester), and Town Manager John Elsesser (Coventry). Other attendees may also join the roundtable meeting. 
  • Members of the press are invited to listen-in, and to participate in a short Q&A after the discussion. To RSVP and receive log-in instructions, email Rep. Courtney’s office here

For more information on the House’s American Rescue Plan Actclick here. Throughout the week, Rep. Courtney will continue to provide detailed information on the rescue plan’s support for eastern Connecticut schools, for working Americans and families, small businesses and non-profits, and more.