Gov. Kay Ivey signs plan to spend $1 billion in federal funds
Gov. Kay Ivey has signed the two bills passed during the Legislature’s special session, including the allocation of $1.06 billion from the American Rescue Plan Act.
Ivey announced this afternoon she signed the bills that lawmakers passed this morning to complete the special session the governor had called last week.
The ARPA bill allocates $400 million to water and sewer projects, $339 million for healthcare costs, $260 million to expansion of broadband internet access, and $55 million for a grant program for community services such as food banks, senior citizens programs, and housing assistance.
The money is the second half of Alabama’s share of ARPA, a plan Congress passed two years ago to help states recover from the pandemic. The Legislature allocated the first $1 billion from ARPA in 2021 and 2022.
Lawmakers said today the water and sewer projects and broadband expansion would be a good use of the one-time federal funds with lasting benefits. Legislative leaders worked on the plan in conjunction with the governor’s office over the last few months.
“I commend the Alabama Legislature for, once again, answering the call to invest these one-time funds wisely to make improvements in Alabamians’ quality of life, including water, sewer and broadband expansion projects, as well as health care,” Ivey said. “Alabama can now look to a future of greater promise thanks to the steps we have taken this week to invest these funds wisely.”
The other bill passed allocates $60 million to the Alabama Trust Fund to finish repayment of $437 million transferred from the ATF about a decade ago to balance the state budgets over three years. The Legislature passed a bill in 2013 setting a schedule to repay the ATF by 2033, but the bill passed today means that will happen a decade sooner.
“Eleven years ago during more challenging economic times, the state made a pledge to repay $437 million borrowed from the Alabama Trust Fund in order to bolster the General Fund,” Ivey said. “Last week, I called upon the Alabama Legislature to finally pay back the remainder of these borrowed funds, noting that unlike D.C., we pay our debts. Today, I am pleased to report that lawmakers have responded to my call by swiftly passing legislation appropriating the final $59,997,772 payment due to the Alabama Trust Fund. This is responsible stewardship of the people’s money and a fitting start to a historic Session. I am proud to sign this Act restoring the Alabama Trust Fund.”
The ATF was created in a constitutional amendment approved by voters to hold the proceeds from oil and gas wells in state waters off the Gulf coast.