What Does The American Rescue Plan Act Mean for Upcoming Opportunities in Infrastructure?

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We explore local government trends and the allocation of funding from The American Rescue Plan Act

The American Rescue Plan Act (ARPA) was passed on March 11, 2021 and allocates $673 Billion to support state and local governments through the COVID-19 pandemic, with over $375 Billion of these funds assigned to infrastructure-related spending. Here, Citylitics explores insights relating to the allocation of ARPA funding across local authorities in the U.S.

When and Where will Funds be Allocated?

Sec. 9901 of ARPA allocates an estimated $335.5 Billion towards water, sewer, and broadband infrastructure. In addition, sections 3401, 7101, and 7102 provide $40+ Billion for transportation, including operating expenses, new roads, rail, public transit, and airports.

Municipal and local government documents collected by Citylitics indicate that funds are already being awarded, with some having been committed as early as April 2021. Of the $375 Billion in total funding for infrastructure, $225.5 Billion are assigned to the State and Local Fiscal Recovery Funds, both of which are to be expended before the end of 2024. Transportation funds will be distributed on an even shorter timeline, with the majority of funds awarded by January 2022.   

How Will State and Local Governments Allocate ARPA Funds?

In most cases, the specific allocation of ARPA funds is being coordinated by state and regional authorities & planning bodies who are developing programs for the equitable and efficient allocation of these funds. In addition, an analysis of public documents collected by Citylitics indicates that some local governments have begun to form committees to discuss ARPA and define their priorities for local infrastructure development. Many of these are already seeking professional guidance to define their infrastructure needs and explore funding options. The State of Wisconsin has been one of the most effective in coordinating the distribution of ARPA funds. Citylitics’ data warehouse, which contains over 1.6 billion documents drawn from 30,000+ cities and utilities, indicates that Vermont, Pennsylvania, and California are all additional states where ARPA is being discussed in relation to upcoming infrastructure priorities and opportunities.*

What Types of Projects are Being Discussed and Where?

While some municipalities have already received confirmation of incoming ARPA funding, including Contra Costa County, CA ($300 Million) and Paducah, KY ($6.5 Million), others are still in the early stages of discussion. Since ARPA allocates a majority of its infrastructure spending to “water, sewer, and broadband”, these have been the most prevalent topics of discussion among local and state governments, with water initiatives (29.22 percent) being discussed most frequently. ARPA’s emphasis on broadband has also led many local authorities to consider expansions to their existing telecommunications infrastructure, with nearly 20 percent if governments discussing such initiatives.

Summary

This landmark moment in the U.S. infrastructure industry means that now, more than ever, Suppliers, Consultants, and Engineers need to arm themselves with the right insights and context to engage public administrations in an effective and informed manner.

About Citylitics

Citylitics is the go-to marketplace data & intelligence platform for Infrastructure Industries such as water/wastewater, transportation, and energy.

Citylitics aggregates public documents & records from 30,000 cities & utilities in the U.S. & Canada to look for early signs of infrastructure needs. Customers include manufacturers, engineering & consulting firms, and construction firms that leverage our platform to find best-fit opportunities long before RFP, target sales efforts with more precision, and enable data-driven business growth & planning.

We have amassed the largest data warehouse in the engine, with over 1.6B+ public documents & records including capital plans, council meeting minutes & agendas, infrastructure plans, permits, financial data, and more, refreshed on an ongoing basis. Through a combination of software algorithms and in-house industry analysts we deliver datasets & intelligence reports specific to each customer’s business needs and goals.

To learn more, contact us at hello@citylitics.com or visit our website at www.citylitics.com.

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