Board Adopts Recommendations on American Rescue Plan Funding
Loudoun County received $40.2M, the first half, in early June. $20M will be used to offset revenue losses from COVID-19.
On June 1st, Loudoun County received the first $40.2 million in federal funds from the American Rescue Plan Act (ARPA) and will receive the second half within a year. With an estimated $80.3 million in total expected funding, the county must commit to using the funds by December 31, 2024 and spend it entirely by the same date in 2026.
During the June 15th Business Meeting, the Board adopted the Finance Committee’s recommendations of allocating the first $20 million to offset pandemic-related revenue losses. With this allocation, the year-end fund balance will rise to approximately $45 million, which is on par with the anticipated target amount for the General Fund.
Normally, surpluses in the General Fund are utilized for one-time purposes at the end of the fiscal year, as well as helping lower the real estate tax rate at the beginning of the next fiscal year. The county’s Budget and Finance Assistant Director, Caleb Weitz, highlighted that $5 million of the surplus may be dedicated to affordable housing as well.
As for rest of the allocations, the finance committee’s report states the following:
- $9 million for economic development programs (i.e. hotels and business recovery grants).
- $3.5 million toward replacing missed hotels tax funding for Visit Loudoun.
- $2.5 million for nonprofits.
- $1 million toward Loudoun County’s COVID-19 response.
- $1 million toward expanding broadband
- $100,000 for the Department of Mental Health, Substance Abuse, and Developmental Services’ telehealth capabilities.
- Remaining balance: $3,962,454.50
For more information on the allocation of funds from the American Rescue Plan, please see the County Finance Committee’s full recommendations.
For questions, reach out to DAAR’s Government Affairs Director.
June 16, 2021