How Birmingham spent $141 million in federal relief funds after Covid

Birmingham officials today recapped details of how they spent $141 million in federal relief funds the city received after the Covid shutdown of 2020.

“Covid hit not just the city, county, state, but it hit the nation, hit the world,” said Birmingham Mayor Randall Woodfin. “As a municipality, tough decisions had to be made.”

The American Rescue Plan Act allocated pandemic recovery funds for cities and states to help get them through the crisis of a near-shutdown of the U.S. economy through mandated lockdowns.

“This is not an easy task,” said Chris Hatcher, chief community planner for Birmingham. “It seems like spending $141 million, we would all like to have that responsibility, but when you have to meet all the stringent federal guidelines and compliance issues that we have, it can be daunting.”

City officials say the money was used for both immediate and long-term needs, to build stronger neighborhoods, create a comprehensive response to violent crime, and help families and small businesses thrive. The city has released a 23-page report detailing expenditures and funding partners.

The 196 local projects supported Woodfin’s Blueprint Birmingham plan and the shared goals with the Birmingham City Council. The focus has been on helping communities disproportionately impacted by the pandemic and creating long-term change.

“It’s really remarkable to think about where we were just five short years ago, the entire world gripped by uncertainty, isolation and fear of what’s to come,” said Birmingham City Council President Darrell O’Quinn. “No one knew what to expect.”

O’Quinn credited Woodfin with the idea of allocating $3 million for each city council member to spend on their individual districts. “We were able to maximize the impact across the city on a really localized level,” O’Quinn said.

Key investments include:

Transportation projects: $25.7 million (includes Birmingham Xpress, street improvements)

Safe and Healthier Neighborhoods: $11.6 million

Affordable housing: $13.8 million (examples include Veranda at Graymont, Belview Heights housing development)

Community violence prevention: $5.5 million

Blight removal: $9.6 million

Storm water management upgrades: $2.8 million

Education: $4 million

Job training and unemployment reduction: $8.5 million

Retention pay: $5 million

Small business and non-profit support: $8.5 million (examples include forgivable loans)

All available funds have been allocated to projects. The city must finish spending all those funds by Dec. 31, 2026.

“This is an unprecedented investment in Birmingham’s future,” Mayor Woodfin said. “We are committed to using every dollar to make our city stronger, fairer, and more prepared for tomorrow.”

A full project list of Birmingham’s ARPA projects and funding is available on the city’s website: www.birminghamal.gov/ARPA.