American Rescue Plan Act (ARPA)
Virtual Town Hall
Watch a recording of our Virtual Town Hall with the Mayor and key City staff to learn more about the City's budget process and the allocation of American Rescue Plan Act (ARPA) funds. The town hall provides details on how Madison develops its annual budget, financial challenges caused by the COVID-19 pandemic, and the role of ARPA funding recovery.
- Watch a recording of the Town Hall Livestream
- Review the Town Hall Presentation
- You can also watch clips watch clips of the Town Hall focused on specific subject areas.
• Budget 101 and the Current Budget Situation
• ARPA Overview
• Affordable Housing
• Homelessness Support
• Neighborhood and Small Business Support
• Public Health Violence Prevention Initiatives
• Youth Employment and Engagement
Update March 2022:
First Quarterly Expenditure Report
The City submitted the first Quarterly Expenditure Report to the U.S. Treasury in January 2022, which covers all expenditures and obligations made with ARPA funds through December 31, 2021. This information was presented to the Finance Committee on February 7, 2022.
The City of Madison will receive $47.2 million of federal funding through the State and Local Recovery Funds component of the American Rescue Plan Act (ARPA) to recover from the negative public health and economic impacts caused by the COVID-19 pandemic. The City has adopted a plan to use ARPA funds to address critical community issues, support an equitable recovery, and continue to provide government services.
Investing in an Equitable Recovery
The City’s plan for ARPA funding focuses on five priority areas. These investments will support communities that were most impacted by the pandemic while allowing the City to improve long-term resiliency.
On July 6, 2021, the Common Council approved a plan that allocates $22.8 million to community investments, including almost $8.3 million that will be allocated immediately, with the remaining funds to be allocated in the 2022 budget.
- Violence Prevention & Youth Engagement - $2,585,000.
Funding supports youth employment and programming, violence prevention initiatives outlined in the Violence Prevention Roadmap, and evaluation of the CARES alternative crisis response team.
- Homelessness Support - $8,650,000.
Funding supports a variety of strategies to support persons experiencing homelessness in Madison such as a permanent men’s shelter and additional tiny houses, as well as an Occupy Madison Solar Project that will reduce housing costs.
- Affordable Housing - $6,650,000.
Funding expands low-cost housing choices, including housing for youth aging out of the foster care system who need support to succeed at work and school. The plan also supports a tenant assistance fund that can hasten getting rental units back in service, expands financial assistance to help Madison residents purchase a home and make needed home repairs or energy-saving retrofits, and commits funds to help facilitate the use of available rental assistance dollars.
- Emerging Needs - $1,000,000.
Funding helps members of our community, including undocumented residents and seniors, gain access to services and resources that meet their basic needs.
- Economic Development - $3,915,000.
Funding increases grants to small businesses, supports neighborhood business districts, brings art to vacant storefronts downtown, and aids the Public Market Foundation while their site is used as temporary shelter.
In addition to community investments, the City will allocate $24.4 million of ARPA monies to address deficits in the city budget due to pandemic-related revenue losses. City revenues were below pre-pandemic levels by over $44 million in 2020 and are expected to remain below those levels for the next few years as the economy recovers. Allocating funds for revenue replacement allows the city to continue providing core services to residents.
Timeline and Process
Proposals for community investments were developed by cross-agency Recovery Teams comprised of City staff with expertise in affordable housing, community services, economic development, public health, and other areas. Recovery Team proposals were prioritized based on impact, urgency, and feasibility. At the same time, the City analyzed its revenue losses and the fiscal impacts of the COVID-19 pandemic on government services. A funding plan was developed that balanced community investments with continuing government services. This plan was approved by the Common Council on July 6, 2021.
Transparency & Accountability
The City is committed to transparency on how ARPA is being used and how funding decisions are made. There will be opportunities for community members, community-based organizations, the Common Council, and other stakeholders to provide input on specific projects that utilize ARPA funds. This website will be updated regularly with information and reports on the use of ARPA funds.
For information on the criteria and processes for allocating funding in the 2021 budget, you can review the report on 2021 ARPA allocations submitted to the Common Council.
What is the American Rescue Plan Act?
The American Rescue Plan Act of 2021 (ARPA) was passed by the U.S. Congress to provide for a strong and equitable recovery from the COVID-19 pandemic. ARPA provides $350 billion directly to state and local governments, including the City of Madison, to respond to the impacts of the COVID-19 pandemic. Eligible uses for ARPA funds include addressing ongoing public health responses costs, addressing the negative economic impacts of COVID-19, and supporting city operations and government services.
For more information on ARPA state and local recovery funds, visit the U.S. Treasury website.
For more information on the comprehensive ARPA legislation, visit the White House website.
Other Federal Funding
In addition to City ARPA funds, the federal government has provided COVID-19 relief funding to the City, Dane County, Madison Metropolitan School District, and the State of Wisconsin through other legislation, including the Coronavirus Aid, Relief and Economic Security (CARES) Act and the Consolidated Appropriations Act of 2020. This funding has assisted with the public health response, including COVID-19 testing, tracing and vaccinations; housing stability, including emergency rental assistance; food security; continued operation of the city’s bus system; support to affected businesses, non-profit organizations and cultural institutions; unemployment compensation; elementary and secondary and higher education instruction; and direct aid to individuals and families. The City considered the availability of other federal funds when prioritizing requests for ARPA funds.
Last Update: 03/25/2022