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Richmond to get millions under federal American Rescue Plan package

Jeremy M. Lazarus | 4/29/2021, 6 p.m.
The American Rescue Plan, which provided a $1,400 check to almost every adult in the country, is about to rain …
Mr. Jordan

The American Rescue Plan, which provided a $1,400 check to almost every adult in the country, is about to rain even more money on City Hall.

At the least, Richmond and its public school system are poised to a gain a massive $236 million infusion from the $1.9 trillion ARP package President Biden pushed through Congress on March 11, City Council was told Monday.

At this point, the city is to receive $113.7 million from the ARP pool for cities, equal to $496 for each of the city’s 229,074 residents. Richmond Public Schools is to receive $122.8 million, or $536 per person.

If U.S. Sens. Tim Kaine and Mark Warner of Virginia get their way, Richmond, as an independent city, also will receive an additional $45 million from a pool reserved for counties. The city’s total then would jump to $158 million if it also gets county money, or $692 per person, according to the 15-page report the council received from its lobbyist, Ron Jordan.

The total is far larger than the federal CARES Act dollars issued last year. Richmond received about $40 million, the lion’s share of which went to eviction prevention and homeless services, while the school system gained $72 million.

The Jordan report indicates the ARP money could be paid out over two years, with the first share of the city’s money projected to arrive sometime in May and the rest possibly a year from now.

The city would have until December 2024 to spend ARP dollars.

Ahead of the infusion, City Council President Cynthia I. Newbille is rushing to gain her colleagues’ approval to create a locked account for all ARP money that comes in to ensure that the council, rather than Mayor Levar M. Stoney’s administration, decides how it will be spent. The administration essentially had sole control of the federal CARES Act funds last year.

The Jordan report noted there are other pots of money in the American Rescue Plan package that could send more to Richmond, including funds for emergency rental and mortgage assistance to shelter the homeless and pay supplements for police, firefighters, health care workers and others serving on the COVID-19 front lines.

Other pots of money will usher in dollars to support GRTC; prop up private child care operations, restaurants and other businesses hard hit by the pandemic; boost funding for school lunches, food stamps and community mental health services; and fund some infrastructure projects, according to the report.

None of this money is mentioned in the mayor’s proposed 2021-22 budget that City Council is now reviewing and amending for a planned vote in May for the start of the new fiscal year on July 1.

Mr. Jordan told the council that his initial report provided an overview of the size and scope of the ARP and that more specifics on what Richmond could anticipate will be forthcoming. The specific federal regulations on how the money can be spent are still being written, Mr. Jordan noted, leaving uncertainty.

Still, 5th District Councilwoman Stephanie A. Lynch is telling colleagues that ARP money would allow the council to boost its Affordable Housing Trust Fund to $10 million this year without earmarking more general fund dollars.

She also hopes that her council colleagues will consider using part of the money to consider opening a year-round service operation for the homeless.

Meanwhile, according to the report, there is a bit more clarity in the way the Richmond Public Schools money can be used. The lion’s share is to assist RPS to reopen, including beefing up remedial programs for students who have fallen further behind, repairing ventilation systems, hiring support staff to help keep students healthy, improve services to homeless students and students with disabilities, provide summer enrichment programs and to upgrade broadband equipment and availability to homes as well as school and library buildings.