PROVIDENCE – The state and its cities and towns will receive a combined $1.78 billion in federal funding from the $1.9 trillion COVID-19 relief bill passed by Congress Wednesday, according to Sen Jack Reed, D-R.I.
Under the bill, called the “American Rescue Plan,” the state will receive $1.1 billion, with most of the remainder of the $1.78 billion set aside for cities and towns. The largest allocation to any municipality in the state is roughly $131 million for Providence, Reed’s office said. The second-largest allocation to a city in the state is roughly $46 million for Pawtucket. The smallest estimated municipal allocation in Rhode Island from the bill is to New Shoreham at $100,000.
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An additional $205 million is slated to be shared by all communities in the state, based mostly on population size, as well.
The bill also includes $113 million for the state to use for critical capital projects throughout Rhode Island to directly enable work, education, and health care, including remote options, in response to the pandemic.
Funds for the state and municipalities may be used “for the provision of government services to the extent of the reduction in revenue … due to the COVID–19 public health emergency,” according to Reed’s office.
The funds may not be used to support pension funds and must be used by the end of 2024. The funding will come in two tranches, roughly one year apart.
Rhode Island previously received $1.25 billion in federal pandemic aid.
“This [new] direct relief represents a major boost to Rhode Island’s economy,” said Reed. “These funds will help revitalize communities by providing a needed injection of federal relief to state and local governments.”
Reed said that Rhode Islanders will also receive “several billions” of dollars in federal aid, including an estimated $1.2 billion in direct payments and roughly $980 million in extended unemployment insurance payments.
Reed said the bill also includes hundreds of millions of dollars for schools and colleges in the state, as well as hundreds of millions for health, housing, transportation, infrastructure, and workforce development.
“The passage of the American Rescue Plan marks a crucial moment in our nation’s fight against COVID-19,” said Gov. Daniel J. McKee in a statement. “President Biden’s plan will put us on a path to beat this virus and end this pandemic. This means getting shots in arms as quickly as possible, getting Rhode Islanders back to work, getting teachers and students safely back in school and getting our businesses back in business.”
