How could Alabama use $1 billion in American Rescue Plan funds?

How could Alabama use $1 billion in American Rescue Plan funds?

Gov. Kay Ivey called the Legislature into special session today to decide how the state will use $1.06 billion from the American Rescue Plan Act, money sent to the states by Congress to help in recovery from the COVID-19 pandemic.

The Legislature has the final say in how the money can be used. Lawmakers worked with the Ivey administration to approve use of the state’s first round of ARPA funds in 2021 and 2022, an amount that was also $1 billion. The Legislature allocated $400 million to help build two new men’s prisons, projects that are expected to be finished in 2026. Then during a special session last year, lawmakers approved spending the rest.

In her proclamation (you can see it at the end of this article) calling for the special session, Ivey listed categories for lawmakers to consider spending the money on. She did not suggest any specific amounts, and some of the categories are broadly worded: To deliver pandemic-related healthcare and related services; for eligible water, sewer, and broadband infrastructure investments; for eligible programs or services in response to the negative economic impacts of the public health emergency; to reimburse state agencies for eligible response and mitigation expenses related to the coronavirus pandemic; and to reimburse costs for the administration, auditing, and reporting requirements of the state fiscal recovery funds.

Lawmakers have mentioned other possible uses of the money. Sen. Rodger Smitherman, D-Birmingham, said he would like to see a portion allocated for stormwater drainage. He said there are needs for improvements in Jefferson County and in other parts of the state. Smitherman also said he would support using ARPA money to help build a multipurpose juvenile justice facility in Jefferson County.

Senate President Pro Tem Greg Reed, R-Jasper, said Tuesday that lawmakers have identified specific needs in their districts related to the pandemic. Reed said he would support consideration of a plan that could allow ARPA funds to go to those projects through grants.

The special session starts at 1 p.m. today.