American Rescue Plan: State and Local Funding

Overview 

The American Rescue Plan provides a projected $7.1 billion to Washington’s state and local governments to help pay for COVID-19 response efforts and to bolster budgets that have sustained significant tax revenue loss due to the pandemic. See a full list of funding going to localities across Washington state here.  

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Funds provided to cities and counties will be sent in two equally divided allocations: the first by May 10th and the second no later than a year after the first payment is made. All funding provided under this section will remain available for use through December 31, 2024.  

The funding may be used to: 

  • Respond to the public health emergency and its negative economic impacts, including assistance to households, small businesses, and nonprofits, and aid to impacted industries such as tourism, travel, and hospitality; 

  • Fill in for revenue reductions to continue to fund government services; or 

  • Make necessary investments in water, sewer, or broadband infrastructure. 

Limitations on use: The funding provided in the American Rescue Plan may not be used to offset a reduction in taxes or as deposits into any public pension fund.