U.S. Sen. Susan Collins (R-ME) and U.S. Rep Dan Meuser (R-PA) recently sent a letter asking for clarification on how state and local governments can use American Rescue Plan funds for transportation infrastructure and revitalization projects. The letter was sent to Treasury Secretary Janet Yellen.
Under the plan, $350 billion has been allocated for the Coronavirus State and Local Fiscal Recovery Funds. The bill’s text limits these funds to four eligible uses: responding to the public health emergency or its negative economic impact; responding to workers performing essential work during the public health emergency; helping governments with the reduction in revenue caused by the COVID-19 pandemic; and investing in water, sewer, or broadband infrastructure.
“Infrastructure investments remain a predominant need in many of the communities we represent, and these critical investments are integral to economic recovery and community revitalization,” the lawmakers said. “We ask that you clarify that the Coronavirus State and Local Fiscal Recovery Funds may be used for transportation investments and to fulfill non-federal match requirements in federal infrastructure funding programs.”
The bill’s text does not necessarily preclude investments in transportation infrastructure and revitalization, the lawmakers said. Additional guidance would help state, local, and tribal governments determine how to allocate funds.