Ivey calls special session to allocate $1.1 billion in federal funds

Ivey calls special session to allocate $1.1 billion in federal funds

Gov. Kay Ivey this morning made official what she had announced in her State of the State address Tuesday night, calling the Legislature into special session to decide how to spend $1.06 billion in federal funds.

The money is from the American Rescue Plan Act, which Congress passed in 2021 to provide money to states to respond to the costs and demands caused by the COVID-19 pandemic.

The governor’s proclamation says lawmakers may consider using the money for pandemic-related healthcare and related services, as well as water and sewer projects and expansion of broadband internet access.

Other uses listed in the proclamation are for eligible programs or services in response to the negative economic impacts of the public health emergency, reimbursement of state agencies for eligible response and mitigation expenses related to the pandemic, and reimbursement of the costs of administering, auditing, and reporting the funds.

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

The money is the second half of the state’s share of ARPA money. The Legislature passed bills appropriating the first $1 billion in 2021 and 2022. Lawmakers allocated $400 million to help build two men’s prisons. The other largest portions went for the expansion of broadband internet access and water and sewer projects, approved during a special session last year.

Ivey had said Tuesday night that expansion of broadband and water and sewer projects would again be priorities for using the one-time funds, as well as other investments to meet some of the state’s biggest challenges.

“I commit to the people of Alabama we will once again take a smart approach and put it towards major and needed endeavors like expanding broadband access, improving our water and sewer infrastructure and investing in our health care – including telemedicine,” Ivey said.

The proclamation includes one subject outside of the ARPA funding. The governor asked lawmakers to appropriate $60 million from the General Fund to repay the Alabama Trust Fund for money borrowed from 2013 through 2015 to balance the state budget. The total amount borrowed was $437 million. The $60 million would complete repayment of that to the fund. A law called the People’s Trust Act required the Legislature to repay the money by 2033, but the governor’s request would mean that is done early. The Alabama Trust Fund is the fund that receives royalties oil and gas leases in state waters in the Gulf of Mexico.

Lawmakers began their 2023 regular session on Tuesday but adjourned after an hour or so and set March 21 as the date to resume the regular session, carving out time for the special session.