PROVIDENCE – Gov. Daniel J. McKee said he wants the state to use 10% of the $1.1 billion allocated from the American Rescue Plan Act for its short-term needs, with a focus on aiding small businesses, at his press briefing on Tuesday.
“It’s time to make a down payment on Rhode Island’s economic comeback,” said McKee, during his opening remarks at the briefing. “The time is now to get these dollars out – before the end of the year.”
McKee said Rhode Island is the only state in the Northeast that has not yet used any of its ARPA funding.
McKee said 90% of the ARPA funds should be targeted toward long-term investments, such as economic issues, child care, affordable housing, and mental health needs due to the impact of the pandemic. He said the state is also in discussions with Secretary of Commerce Gina M. Raimondo about applying for additional funding to fund the green and blue economy.
The R.I. General Assembly has final say on the usage of the federal funds.
“The opportunity is really great to address long-standing issues,” McKee said. “Inequity will be front and center as well. I’m excited about the future for Rhode Island.”
McKee noted that Rhode Island has one of the highest vaccination rates in the nation; and a 7.2% increase in real GDP in the first quarter of 2021, exceeding the U.S. growth and New England region rates. “As of today, Rhode Island ranked fourth best state in the country and number one in the region for economic reopening,” he said, noting Moody’s back-to-normal economic recovery index.
Still, McKee said that Rhode Island’s small businesses have been hit hard by the pandemic and need immediate short-term assistance, especially since there are COVID variants that still pose a threat to the local economy.
“I believe our small businesses can’t wait for assistance,” he said.
McKee said that he will be working with the R.I. General Assembly for approval of the short-term use of the ARPA funds. “Good use of these funds is going to help the state of Rhode Island,” he said. “We have a concept for use of the funds.”
In a joint statement Tuesday, R.I. House Speaker K. Joseph Shekarchi and R.I. Senate President Dominick J. Ruggerio said, “We look forward to vetting the governor’s proposals. As we start to explore the best ways to invest this federal funding with House and Senate hearings today, we are committed to a vigorous open and transparent public process.”
McKee said it will be a collaborative effort with the legislature to direct the funding to areas of need. “The goal is to identify the places of most need.”
“We need to identify areas that really need the help,” he added. “Providence has been hit hard.”
McKee said areas that need assistance include small businesses, minority-owned businesses, housing, child care and the hospitality industry, to name a few. He noted that using ARPA funding to restore the state’s unemployment funds also makes sense and is an appropriate use of the funding.
(Update: Adds paragraph 11 with comment from R.I. House Speaker K. Joseph Shekarchi and R.I. Senate President Dominick J. Ruggerio.)
Cassius Shuman is a PBN staff writer. Contact him at Shuman@PBN.com. You may also follow him on Twitter @CassiusShuman.
