State of Illinois

Recovery Plan 

State and Local Fiscal Recovery Funds

Initial Report

Governor’s Office of Management and Budget

August 31, 2021

 
Table of Contents 

Executive Summary......................................................................................................................................3

Uses of Funds................................................................................................................................................4

Expense Category 1 – Public Health..........................................................................................................4

Expense Category 2 – Negative Economic Impacts..................................................................................6

Expense Category 3 – Services to Disproportionately Impacted Communities .......................................8

Expense Category 4 – Premium Pay .........................................................................................................9

Expense Category 5 – Water, Sewer and Broadband Infrastructure........................................................9

Water and Sewer ..................................................................................................................................9

Broadband...........................................................................................................................................10

Promoting Equitable Outcomes and Community Engagement............................................................10

Labor Practices .......................................................................................................................................11

 

 
Executive Summary 

In March 2021, the American Rescue Plan Act (ARPA) became law, becoming the sixth piece of legislation 

enacted by Congress to provide COVID-19 pandemic-related relief. On July 22, 2021, Illinois received 

$8.127 billion Coronavirus State Fiscal Recovery Fund (CSFRF) as part of ARPA. The funds can be used for 

a variety of purposes related to responding directly to the COVID-19 pandemic as well as its impacts. The 

expenditures must follow strict guidelines set out by the U.S. Department of the Treasury. Funding can 

be used for supporting public health expenditures, covering State costs of responding to the COVID-19 

pandemic, addressing the negative impacts caused by the pandemic, replacing lost revenues of the 

governmental unit (and allowing such lost revenues be used for providing government services), providing 

premium pay for essential workers, and investing in water, sewer, and broadband infrastructure. 

Illinois’ enacted Fiscal Year 2022 budget includes $2.8 billion in initial ARPA CSFRF appropriations ($1.8 

billion for Operating Budget Appropriations and $1 billion for Capital Appropriations) from the State 

Coronavirus Urgent Remediation (CURE) Fund. The appropriations of these one-time funds are expected 

to spend out through December 31, 2026, allowing for thoughtful and impactful short-term investments 

to improve the State’s economy, and the social service, public health, and educational infrastructure in 

response to the COVID-19 pandemic.

In order to facilitate a strong and equitable recovery from the COVID-19 pandemic and economic 

downturn, the State of Illinois will work closely with State agencies and grantees to: promote and protect 

public health, mitigate negative economic impacts, provide services to disproportionately impacted 

communities, and complete infrastructure projects.

The plans and programs to achieve the above goals include so far:

• Public Health: Provide a broad response to COVID-19, including purchase of personal protective 

equipment (PPE), increasing the number of alternative care sites, providing necessary support to 

hospitals, nursing homes and other healthcare providers, supporting COVID-19 vaccination,

testing and contact tracing programs, and growing mental and behavioral health programs to 

support the public health response and improve public health outcomes;

• Negative Economic Impacts: Promote recovery for small businesses and impacted industries by 

issuing Back 2 Business grants, promoting job and skills training, workforce recovery, and 

conducting regional economic analysis to lay the groundwork for longer-term economic recovery;

• Services to Disproportionately Impacted Communities: Increase the supply of affordable 

housing, mitigate the increase in violence during the pandemic, and address educational 

disparities;

• Capital Infrastructure: Complete statewide critical infrastructure projects related to broadband, 

sewer, and water.

Overall, the goal is to rebuild and grow the areas of the economy that have borne the brunt of the ongoing

COVID-19 pandemic. The anticipated challenges to achieving the aforementioned goals include balancing 
impactful programs with timely deployment of funds. The primary method for addressing this challenge 

is by partnering with community-based programs to implement and facilitate successful outcomes.

The goal of this Annual Report is to provide Recovery Plan information to the federal government on an 

annual basis pursuant to the reporting requirements set forth by U.S. Treasury. Recovery Plan 

Performance Reports shall be submitted by each July 31st after this initial round.

1

Uses of Funds 

The Fiscal Year 2022 (FY22) budget includes $2.8 billion in initial ARPA CSFRF appropriations ($1.8 billion 

for Operating Budget Appropriations and $1 billion for Capital Appropriations) from the State Coronavirus 

Urgent Remediation (CURE) Fund. For more information regarding the breakout of the appropriations by 

expense category, please see “Table 1 – Illinois FY 2022 ARPA Initial Appropriations in ($) Millions” below.

These one-time funds can be spent through December 31, 2026, allowing for thoughtful and impactful 

short-term investments to improve the State’s economy, and the social service, public health, and 

educational infrastructure in response to the COVID-19 pandemic and its effects.

The State of Illinois’ fiscal year begins July 1. As of July 31, 2021, no ARPA CSFRF funds had been expended. 

Expense Category 1 – Public Health

The COVID-19 pandemic has created a public health emergency with broad health impacts. In order to 

implement an effective COVID-19 response, the State of Illinois appropriated funds to State agencies to 

1

“Compliance and Reporting Guidance, State and Local Fiscal Recovery Funds,” 

https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf

786.5 

573.7 

462.6 

1,000 

Table 1 - Illinois FY 22 ARPA Initial Appropriations in ($) Millions

EC 1 - Public Health EC 2- Negative Economic Impacts

EC 3 - Services to DI Communities EC 5 - Capital/Infrastructure
support programs and services that assist residents and entities in need. A total of $786.5 million has been 

appropriated to support the COVID-19 response and to improve public health outcomes. “Table 2 – Public 

Health Appropriations by Agency in ($) Millions” below details the appropriations by State agency. In 

response to the COVID-19 virus, Illinois is allocating resources to curb the spread of the virus as well as 

ensuring that front-line workers have the resources necessary to continue their work. 

The Illinois Department of Healthcare and Family Services (HFS) has been allocated $280 million as part 

of the State’s healthcare response and work to improve public health outcomes. The funding will support 

providers of long-term care services, mental health rehabilitation facilities, and hospitals. A total of $200 

million has been appropriated to State hospitals to ensure adequate staffing, supplies and ability to 

implement proper COVID-19 safety protocols. As hospitals receive the support necessary for their staff to 

properly serve their patients, all Illinois residents will benefit. To ensure equity in the healthcare response, 

the Department of Public Health has allocated $37.7 million for funding safety net hospitals that 

participate in the State’s Medicaid managed care program. 

The Illinois Emergency Management Agency (IEMA) launched “All in Illinois” as an integral part of the 

recovery plan with programs for COVID-19 vaccination and testing as well as COVID-19 contract tracing. 

In addition, IEMA and other state agencies will use the FY 22 appropriation of $258 million to cover 

ongoing State costs for Personal Protective Equipment (PPE), alternate care sites and increased 

operational costs of State agencies. The increased operational costs reflect State agencies’ need to have 

280 

150 

150 

70 

60 

56 12 7 2 

Table 2 - Public Health Appropriations by Agency in ($) Millions 

Department of Healthcare and Family Services

Illinois Emergency Management Agency

Department of Human Services

Department of Corrections

Department of Innovation and Technology

Department of Public Health

Other Agencies
dedicated staff to address the effects of the public health emergency and to ensure that State services 

are uninterrupted. 

The Department of Human Services (DHS) has been appropriated $70 million to address public health 

issues increasing as a result of the pandemic. DHS will use $50 million of the appropriated funds for 

programs to address trauma, mental health and behavioral health. Lastly, DHS will partner with other 

State agencies and community support organizations to specifically address first responder mental health 

and suicide prevention. 

The Illinois Department of Public Health (DPH) is overseeing the Illinois Coronavirus Vaccine Incentive 

Public Health Program to educate and incentivize residents to get vaccinated. The Department of Public 

Health and Department of the Lottery have been appropriated $10M for promotion of the vaccine 

incentive program and program prizes. Under the “All in Illinois” program, fully vaccinated residents have 

had the opportunity to win incentive prizes, with the final round of winners announced in August 2021.

As residents get vaccinated in the effort to curb the spread of COVID-19, there is also a need to evaluate 

ways to prevent COVID-19 in state-run congregate settings. For example, the Department of Corrections 

has been appropriated $70 million for COVID-19 testing for staff and individuals in custody. The testing 

will allow the agency to limit exposure by acting appropriately and quarantining upon any positive COVID19 results.

Expense Category 2 – Negative Economic Impacts

Due to the COVID-19 pandemic, daily life changed as schools closed, businesses shut down, travel was 

reduced, and millions of Americans lost their jobs. These changes have resulted in lasting negative 

economic impacts. In order to address the negative economic impacts caused by the public health 

emergency, the Department of Commerce and Economic Opportunity (DCEO) will provide grants for 

economic recovery and resident job training. The table below, “Table 3 – Department of Commerce and 

Economic Opportunity Programs in ($) Millions”, shows the allocation of the DCEO programs. 
Under the Back 2 Business Grant Program, $300 million is allocated to aid in business recovery and to 

offset business losses during the pandemic. The program is an equity-focused business relief program that 

gives priority to hard-hit industries, hard-hit areas, businesses with less than $5 million in revenue as of 

2019 and businesses that have yet to qualify for other State and Federal funding assistance. The grants 

will range from $5,000 to $150,000 per business and can be used to cover operations/staff/overhead 

costs. The grant applications for this program will be received, reviewed and rewarded on a rolling basis. 

As businesses re-open and work to bring about a strong economic recovery, residents will have more 

employment opportunities.

One of the hardest hit industries in the COVID-19 pandemic was the hospitality/tourism/convention 

industry. As conventions and expos were cancelled due to the public health emergency, these industries 

suffered significant revenue loss. In order to mitigate the negative economic impact on this sector, $123.7 

million has been appropriated to impacted industries and agencies. The investment in these industries 

will pay dividends as conventions and tourism return to the State, bringing tax revenues.

The COVID-19 pandemic impacted not only businesses and specific industries, but also specific business 

areas as many workers left offices to work remotely. Under the American Rescue Plan Capital Assets 

Program, DCEO can fund $45 million to projects that support improvements and encourage investment 

in commercial corridors and downtownsthat have experienced divestment. The funding for these projects 

will take into consideration the ability to make hard-hit areas more attractive for private investment and 

generate employment opportunities for residents.

In addition to working with businesses, the State will work with displaced workers as part of the Workforce 

Recovery Initiative. The $50 million initiative connects unemployed, underemployed and displaced 

workers with skills training and new employment opportunities at all skill levels. A core component of the 

300 

124 

50 

45 

25 20 10 

Table 3 - Department of Commerce and Economic Opportunity 

Programs in ($) Millions

Back to Business Grants Impacted Industries

Workforce Recovery American Rescue Plan Capital Assets Program

Research Economic Recovery Targeted Technical Assistance

Tourism Attraction Grant
initiative isto work with underrepresented and underserved populations to promote equitable outcomes. 

The initiative is designed to help residents re-enter the workforce and support economic recovery. 

Expense Category 3 – Services to Disproportionately Impacted Communities

The COVID-19 pandemic has impacted the world in many ways: changing the way people work, learn and 

socialize. However, the negative effects of the pandemic disproportionately impacted communities along 

racial, ethnic, socioeconomic and geographical lines. In order to facilitate an equitable recovery from the 

pandemic, assistance to these disproportionally impacted communities is necessary. State agencies 

including the Department of Human Services, State Board of Education and Department of Commerce 

and Economic Opportunity will partner with communities and community organizations to meet the 

dynamic needs of these groups. A full breakout of all agencies is below in “Table 4 – Services to 

Disproportionately Impacted Communities by Agency in ($) Millions”.

256.5 

75 

55.9 

37 

15.5 10 7.8 1 4 

Table 4 - Services to Disproportionately Impacted Communities 

by Agency in ($) Millions

Department of Human Services Illinois Housing Development Authority

IL Criminal Justice Information Authority Illinois State Board of Education

Department of Commerce & Economic Opportunity Illinois Community College Board

Illinois Student Assistance Commission Department of Children & Family Services

Illinois Board of Higher Education
The Department of Human Services (DHS) will oversee $147.3 million in grants to community support 

organizations, including $87 million to welcoming centers. DHS and the community support organizations 

will partner in vaccination outreach, behavioral health and substance misuse services. As residents access 

these services, the anticipated results are positive public health outcomes. The Welcoming Center System 

will also provide comprehensive case management and service coordination to immigrants and refugees.

Moreover, the COVID-19 public health emergency has given rise to stress, fear and uncertainty. Those 

factors, coupled with declining economic conditions, have led to the increased potential for violence in 

underserved and disproportionately impacted communities. The Criminal Justice Information Agency 

(CJIA) is partnering with schools and community support organizations to provide resources to stop the 

pattern of violence in disproportionately impacted communities. CJIA will award grants of $55.8 million 

to programs with the purpose of preventing and interrupting violence. DHS also has funding to expand 

summer employment opportunities and to expand funding for Teen REACH for safer communities’

programs.

In order to address the educational disparities between low-income students and their peers, the Illinois 

State Board of Education (ISBE) will implement educational assistance programs in high-poverty districts. 

As part of after school programs, students will have the opportunity to participate in enrichment activities 

in a safe environment. The Parent Mentoring program is another program to provide educational 

assistance in disproportionately impacted communities. Parent mentors will work with teachers in the 

classroom to strengthen school-community-parent partnerships. 

Expense Category 4 – Premium Pay

Currently, there are no direct appropriations to address premium pay.

Expense Category 5 – Water, Sewer and Broadband Infrastructure

Water and Sewer

ARPA funding allows State, Local, and Tribal governments to have access to funding for improvements to 

water and sewer infrastructure. ARPA fund eligibility is determined by the same eligibility criteria as the 

US EPA’s Clean Water State Revolving fund (CWSRF) and the Drinking Water State Revolving Fund 

(DWSRF). The types of projects eligible for CWSRF assistance include projects to construct, improve, and 

repair wastewater treatment plants, control non-point sources of pollution, improve resilience of 

infrastructure to severe weather events, create green infrastructure, and protect waterbodies from 

pollution. Projects eligible for DWSRF assistance include those that construct municipal wastewater 

facilities, control nonpoint sources of pollution, build decentralized wastewater treatment systems, create 

green infrastructure, protect estuaries, and other water quality projects. By permitting funds to be used 

for water and sewer infrastructure needs, Congress recognized the critical role that clean drinking water 

and services for the collection and treatment of wastewater and stormwater play in protecting public 

health. 
Water and sewer systems in Illinois have become an increasing problem in recent years as communities 

have struggled to address outdated water and sewer systems, polluted water, combined sewer overflows 

(CSO’s), and connecting communities to wastewater treatment facilities. This struggle has led to 

communities operating with a higher risk of contaminants that pose a threat to public health and the 

environment. The assistance provided through ARPA funding supports the critical need for investments 

to create and improve water and sewer infrastructure, enhancing and expanding systems to benefit 

communities and the economy.

For example, using ARPA funds, the State will invest $26.9 million in the City of Marengo for extension of 

its water and sewer lines, improvements to the wastewater treatment plant and a sanitary sewer system 

rehabilitation. The three projects at Marengo are critical in keeping the water supply safe and facilitating 

further economic development. The extension of water and sewer lines in the City of Marengo allows for 

needed infrastructure to bring manufacturers and stimulate industrial development creating long-term 

jobs for this region. 

Broadband

The Connect Illinois initiative includes a capital investment from Rebuild Illinois, the creation of a 

Broadband Advisory Council and Broadband Office, and a new program that will provide all Illinois public 

K-12 students access to high-speed broadband at no charge. ARPA funds will be used to bolster and 

accelerate a statewide broadband deployment grant program to expand access to reliable, high-speed 

internet service statewide. According to the USDA, fully utilizing digital technologies within the agriculture 

industry could create approximately $47 to $65 billion annually in additional gross benefit for the U.S. 

economy.

Access to broadband internet has emerged as a critical need for families, entrepreneurs, farmers, and 

industries because of its ability to facilitate economic growth and development in today’s economy and 

during the COVID-19 pandemic. According to the Federal Communications Commission, 30 percent of 

rural Americans lack access to high-speed broadband, compared to just 4 percent of urban Americans. 

Under the direction of the Illinois Department of Commerce and Economic Opportunity, the State is 

directing at least $300M to jump start programs to expand and strengthen broadband network access. 

Promoting Equitable Outcomes and Community Engagement 

The COVID-19 pandemic has affected communities across the country and the impact on low-income 

families, rural communities and communities of color has been disproportionately high. During the 

pandemic, legislation has been signed into law to promote equity in education and workforce 

development, economic access and opportunity, and health care and human services. The Recovery Plan

for Illinois is being designed with this legislation in mind and consideration of community awareness and

community access.

Historically, community awareness and community access and distribution have been barriers to serving 

marginalized communities. Illinois will work to address these barriers through the use of programs such 

as the Community Navigator Program and Welcoming Centers. The Community Navigator Program has 13 
hubs connecting small businesses with relief program services and resources and will target underserved 

groups including minority, rural, veteran and women-owned businesses. These programs also work to

spread awareness of services as well as providing aid in applying for relief programs. Lastly, Community 

Navigators engage in open dialogue with the Department of Commerce and Economic Development 

about potential barriers to underserved groups in programming. The Illinois Welcoming Centers connect 

immigrants and refugees with benefits and services provided by State and Federal agencies. The 

Welcoming Centers leverage community involvement to create Community Alliances to address barriers 

to services. 

Labor Practices 

Illinois has not started any of the projects under Infrastructure (EC 5). However, the State has incorporated 

reporting requirements that encourage and track the use of strong labor practices. For capital 

expenditures in excess of $10 million the following reporting is required under the Uniform Grant 

Agreement: prevailing wage, project labor agreements, local hiring and community benefit agreements. 

As part of the prevailing wage2reporting, the grantee certifies all laborers and mechanics are paid at or 

above the prevailing wage or provides a project employment and local impact report. The project 

employment and local impact report must detail:

• Number of employees or contractors and subcontractors working on the project;

• Number of employees on the project hired directly or through a third party;

• Wages and benefits of workers on the project by classification; and

• Whether wages are at rates less than prevailing wage (as determined by the Davis-Bacon Act)

The project labor agreement reporting includes certification that a project labor agreement is in place, 

meaning a pre-hire collective bargaining agreement consistent with section 8(f) of the National Labor 

Relations Act or a project workforce continuity plan. The project workforce continuity plan must detail:

• How the Grantee will ensure the project has ready access to a sufficient supply of appropriately 

skilled and unskilled labor to ensure high-quality construction throughout the life of the project;

• How the Grantee will minimize risks of labor disputes and disruptions that would jeopardize 

timeliness and cost-effectiveness of the project;

• How the Grantee will provide a safe and healthy workplace that avoids delays and costs associated 

with workplace illnesses, injuries, and fatalities; and

• Whether workers on the projects will receive wages and benefits that will secure an appropriately 

skilled workforce in the context of the local or regional labor market.

Last, grantee labor reporting packages must also include if the project prioritizes local hiring and if the 

project includes a Community Benefit Agreement and a description of that agreement.

2 Governed by the Illinois Prevailing Wage Act, 820 ILCS 130/1 et seq.