March 2023

AMERICAN RESCUE PLAN

TWO YEARS IN: 

THE AMERICAN RESCUE PLAN ACT’S HISTORIC 

INVESTMENTS IN A STRONGER ECONOMIC FUTURE
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

CONTENTS

Executive Summary.................................................................................... 1

State and Local Fiscal Recovery Funds ............................................... 3

Capital Projects Fund................................................................................. 12

Emergency Rental Assistance Program .............................................. 15

Homeowner Assistance Fund ................................................................. 17

State Small Business Credit Initiative ................................................. 19

Historic Tax Relief for Working Families 

and Record Low Child Poverty .............................................................. 22

Saving the Pension Benefits of Millions 

of Workers, Retirees, and their Families............................................ 22

Conclusion ..................................................................................................... 23
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 1

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Executive Summary

The American Rescue Plan has helped to power one of the strongest and most equitable recoveries 

on record while making investments which position our nation for economic success in the coming 

decades. As Secretary Yellen has said, “[t]he Rescue Plan provided critical relief and helped drive a 

historic recovery. . . The strong recovery of the past two years has not only meant that Americans are 

better off today. It has allowed us to focus on what our economy will look like in 2030—not just 2023.” 

American Rescue Plan investments helped make 2021 and 2022 the fastest two years of job growth and 

new small business formation on record and contributed to the unemployment rate reaching its lowest 

level in over 50 years at the start of 2023, with historically rapid recoveries in Hispanic, Black, youth, 

and long-term unemployment. 

Following enactment of the American Rescue Plan in March of 2021, the Treasury Department oversaw 

an historic and unprecedented provision of assistance to struggling Americans, including delivering 

more than 150 million Economic Impact Payments within the first few weeks following the American 

Rescue Plan’s passage; helping launch a national infrastructure to provide emergency rental assistance 

and prevent evictions across the country; issuing the first ever monthly payments of the Child Tax 

Credit supporting tens of millions of families; and rapidly distributing unprecedented financial support 

to every state, local, Tribal and territorial government to help stabilize budgets, avoid cuts, address 

pressing community needs, and help support a rapid, resilient, and equitable recovery.

Over the last year, American Rescue Plan programs administered by Treasury continued to make a 

significant difference in the lives of millions of Americans and contribute to a strengthening of local 

communities and an expansion of economic opportunities, including:

Delivering direct and flexible aid to over 30,000 state, local, Tribal, and territorial 

governments to respond to the pandemic and make critical investments in a strong and 

equitable recovery. To date, over 99% of all available State and Local Fiscal Recovery Funds have 

been delivered into the hands of nearly every state, local, Tribal, and territorial government to support 

their response to the pandemic and help avoid the consequences of the Great Recession, when 

state and local austerity was a drag on GDP growth for the first 14 quarters of the recovery. To date, 

recipients have budgeted $11.8 billion for public health projects, $15.9 billion for housing-related 

purposes, $10.9 billion for workforce support, $4.4 billion for small business support, and $24.3 billion 

for critical infrastructure investments in broadband, water, and sewer.

Investing in expanded access to high-speed internet, benefiting over 1.4 million 

underserved families and businesses. Through the Capital Projects Fund, Treasury has approved 

awards for high-speed internet infrastructure that will deliver reliable, affordable access to over 1.4 

million currently underserved homes and businesses in 34 states.

Delivering rental and utility assistance to millions of hard-pressed renter households, 

preventing evictions and helping families remain in their homes. Through December 2022, the 

Emergency Rental Assistance program had delivered more than 10.3 million assistance payments to 

families at risk of eviction. While eviction diversion programs were uncommon before the pandemic, 

at least 180 jurisdictions across 36 states have launched or strengthened eviction diversion programs 

with ERA, programs that have significantly limited eviction rates.
2 U . S . D E P A R T M E N T O F T H E T R E A S U R Y 

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Providing a lifeline to over 230,000 families at risk of losing their homes. As Homeowner 

Assistance Fund programs geared up across the states and territories, more than 230,000 families 

at-risk of foreclosure received assistance in 2022. Despite the economic disruptions caused by 

COVID-19, foreclosure starts are 30% below pre-pandemic levels, according to Black Knight data, even 

after the expiration of several emergency foreclosure protections from the height of the pandemic.

Launching small business assistance programs—with a focus on entrepreneurs and 

owners who have been underserved historically—that will provide equity investment or 

credit support to up to 100,000 small businesses over the next decade. Building off the two 

highest years for new small business formation on record in 2021 and 2022, Treasury approved plans 

for State Small Business Credit Initiative-supported programs in 51 states and territories over the 

past 12 months. These plans are designed to catalyze tens of billions of dollars of private investment 

and support up to 100,000 small businesses over the next decade. Moreover, through 2022, Treasury 

made $8.38 billion in investments to 170 community financial institutions through the Emergency 

Capital Investment Program that will increase lending to small businesses and other community 

development priorities.

Delivering historic tax relief for families and record reductions in child poverty. New data 

released in 2022 by the Census Bureau showed that the expanded Child Tax Credit provided by the 

American Rescue Plan was the leading driver behind a 46% decline in child poverty in 2021— cutting 

the annual child poverty rate to its lowest-ever recorded level including record lows in Black, Hispanic, 

Native American, Asian, and white child poverty. Additionally, the lifting of restrictions that prevented 

families with fewer than three age-eligible children from receiving the Child Tax Credit in Puerto Rico 

led to 200,000 more families in the archipelago receiving the credit when they filed taxes in 2022 

compared to a year earlier.
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 3

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

State and Local Fiscal Recovery Funds

The State and Local Fiscal Recovery Funds (SLFRF) program provided $350 billion to over 30,000 

state, local, Tribal, and territorial government governments across the country to support both their 

immediate needs in responding to the COVID-19 pandemic and their longer-term efforts to build a 

strong recovery. In contrast to previous downturns where state, local, and Tribal governments faced 

budget shortfalls that slowed recovery and resulted in cuts to needed services, SLFRF provided the 

resources communities needed to help drive a stronger economy, both now and over the long-run. 

Swift delivery to meet needs during a crisis: In the months before the passage of the ARP, 

survey data found that 90% of cities were experiencing revenue declines and that half of states were 

imposing hiring freezes, furloughing workers, or cutting salaries or other staff costs. The first tranche 

of SLFRF funding was made available to recipients in 2021, only two months after ARP’s enactment, 

with the second tranche of funding becoming available in May 2022. In addition to preventing layoffs 

and service cuts, swift disbursement of funds allowed governments to support public health – with 

recipients budgeting over $11 billion towards more than 5,300 public health projects to date. Today, 

more than 99% of funds are now in the hands of recipients and, according to NASBO, states have 

budgeted more than 90% of the funds they have received.

Flexible funding to respond to the diverse needs of different communities: With many 

governments of all sizes facing substantial fiscal challenges as a result of the pandemic – which both 

reduced revenues and increased the need for services in their communities – the SLFRF program was 

designed to provide flexible aid, including the ability to use funds up to the level of a government’s 

revenue loss on the broad range of services that governments traditionally provide. Treasury’s Final 

Rule additionally identified a wide range of eligible uses to respond to the coronavirus pandemic and its 

negative economic impacts. These flexibilities provided in ARP recognized that there is no one-size-fitsall approach to the challenges facing communities ranging from large states to small towns, and gave 

recipients the ability to take approaches that met local needs.

Catalyzing investment to support a strong recovery: Governments have used SLFRF funds not 

only to prevent cuts in government services and respond to the immediate health and economic 

consequences of the pandemic, but also to make much-needed investments to strengthen their 

economies and their communities over the long-run. To date, recipients have budgeted $11.8 billion 

for public health projects, $15.9 billion for housing-related purposes, $10.9 billion for workforce 

support, $4.4 billion for small business support, and $24.3 billion for critical infrastructure investments 

in broadband, water, and sewer. 

Direct relief to local and tribal governments: SLFRF provided direct relief to local governments 

of every size, including smaller city, county, and town governments excluded from direct support in 

previous fiscal aid programs. This support has allowed rural communities, for example, to invest in 

areas like public health, broadband, and sewer and water infrastructure. Likewise, Tribal governments 

received historic funding through $20 billion in SLFRF funds allocated to them, the largest single 

infusion of federal funding into Indian Country in U.S. history, discussed in greater detail in Treasury’s 

SLFRF Tribal Recovery Report. Putting relief directly in the hands of local communities and Tribal 

governments has allowed them to quickly respond to the unique needs of their communities and make 

the investments they deem most valuable.
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OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Catalyzing an equitable recovery: The Biden Administration recognized that fully addressing 

the disproportionate impacts of the pandemic required addressing underlying disparities that left 

some people and communities more vulnerable to the pandemic, not just the incremental impacts 

that occurred during the pandemic. To translate this goal into action, Treasury provided a broad 

menu of services to enhance health and economic equity that were automatically eligible uses of 

funds in low-income, high-poverty communities. For example, the Final Rule made all low-income 

households and communities automatically eligible for services and expanded eligible uses of funds 

in disproportionately impacted communities to encourage more investment. Treasury’s SLFRF Equity 

and Outcomes Resource Guide highlights the tools and processes recipients are using to incorporate 

equity into their SLFRF programs. 

Support for innovation: The SLFRF program allows state, local, Tribal, and territorial governments 

to build public sector capacity by making investments in program evaluation, data analysis, and 

community outreach to improve the efficacy of vital public health and economic relief programs. 

Taken together, this approach is helping governments build their capacity to be better prepared and 

more resilient for future crises. Furthermore, Treasury’s reporting requirements gather information 

about how recipients are using evidence and evaluation in their SLFRF programs. Treasury has also 

worked with outside groups to highlight “best practices” – both in terms of equitably deploying funds 

generally and in encouraging the best uses of funds in priority areas, creating a dynamic where many 

communities are following the lead of high performers. 

Moving forward, Treasury is implementing new eligible uses for SLFRF funds in areas like infrastructure 

investment that will further support a strong recovery. At the same time, Treasury will continue to work 

with SLFRF recipients to share best practices and lift up examples of how recipients are using their 

funds to help recipients meet the deadline to obligate SLFRF funds by December 31, 2024, and expend 

them by December 31, 2026.
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 5

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Addressing public health needs

1,500 governments report having budgeted nearly $12 billion for more than 

5,300 projects addressing public health needs including COVID-19 testing, 

vaccinations, staffing, and outreach to underserved communities. 

Providing state, local, Tribal, and territorial governments the resources needed to address public 

health needs is a core goal of SLFRF. In addition to fighting COVID-19 through vaccinations, testing, 

supporting hospital capacity, protecting nursing homes and congregate settings, purchasing PPE, 

and supporting local health departments, recipients have also invested funds in behavioral health 

care, such as substance use and mental health treatment, as well as preventing and responding to 

violence, in recognition of the broad mental and emotional health consequences of COVID-19. For 

local governments, the provision of COVID-19 public health services is one of the top programmatic 

expenditure categories, due in part to SLFRF being the first time that most local governments received 

direct, dedicated federal support to respond to the pandemic and its impacts. Examples1 of how 

recipients are investing in public health include: 

1 Data based on Project and Expenditure Reports submitted to Treasury for the reporting period ended December 31, 

2022. The examples included throughout this report are based on recipient reports, and their inclusion in this document 

does not constitute an explicit approval of these projects by Treasury.

The State of Alaska budgeted $40 million to address 

the state’s most critical COVID public health needs that 

were not covered by other available funding sources, 

including providing testing equipment and consultation 

services to address the ongoing needs of the pandemic. 

El Paso, Texas budgeted more than $16 million for 

the health department’s COVID-19 response teams 

including testing, vaccination, and the response supply 

center. This initiative also includes the design and 

construction of a new clinic which will provide COVID-19 

response services to underserved communities.

Milwaukee, Wisconsin obligated over $13 million 

for COVID-19 public health services including testing, 

vaccinations, isolation, a COVID-19 hotline, and 

medical respite care. These services are targeted to 

disproportionately impacted low-income and minority 

communities as these were identified as the most 

vulnerable populations based on socioeconomic status, 

housing type, and transportation access.

Allegheny County, Pennsylvania budgeted $14.5 

million to build the county Department of Human 

Services’ capacity and add new services to address 

behavioral health issues, including regional call centers, 

mobile crisis teams, and receiving and stabilization 

facilities.

The Ninilchik Village will braid SLFRF with IHS funding 

to build a primary care medical clinic to serve the 

Homer, Alaska , community and establish a second 

clinic for the Anchor Point, Alaska community. 
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OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Supporting affordable housing

SLFRF recipients have committed nearly $16 billion on more than 2,100 projects 

to meet housing needs, over $5.4 billion of which have been committed to 

affordable housing development and preservation. Recipients have reported 

serving more than 3.6 million households with rent, mortgage, or utility aid.

The COVID-19 pandemic exacerbated the pre-existing housing crisis, putting millions of renters and 

homeowners at risk of losing their homes. Expanding access to affordable housing is a top priority 

for Treasury and the Administration, and the use of SLFRF funds for affordable housing is part of 

the Administration’s broader Housing Supply Action Plan to ease housing costs over time. Treasury 

is playing a key role in this work by encouraging jurisdictions to consider using SLFRF for affordable 

housing or to supplement other ARP programs aiding renters and homeowners, such as the Emergency 

Rental Assistance program and the Homeowners Assistance Fund, which are discussed in detail below. 

In July 2022, Treasury announced additional guidance designed to increase the affordable housing 

supply by expanding the list of presumptively eligible uses of funds for affordable housing and 

permitting recipients to use SLFRF to make long-term loans to finance certain affordable housing 

projects, including Low-Income Housing Tax Credit projects. Since then, SLFRF recipients have 

increased their investments in affordable housing projects by 20%. 

Examples of how governments are investing their SLFRF to increase the supply of housing in their 

communities include: 

 The State of Idaho has budgeted $50 million for gap 

financing to eligible low- and moderate-income-targeted 

multifamily housing developments and down payment/

closing cost assistance for low- and moderate-income 

homebuyers. This will ensure that those who were the 

most economically impacted by the COVID-19 pandemic 

and the affordable housing crisis have access to longterm, high-quality, affordable housing. 

Mobile, Alabama has budgeted more than $4 million 

to work with housing developers and the local Public 

Housing Authority to revitalize neighborhoods with 

affordable housing for unhoused persons and first-time 

homebuyers. 

Pensacola, Florida has allocated $3 million to improve 

access to stable, affordable housing for unhoused 

individuals as well as programs to assist the unhoused.

Rochester, New York is dedicating over $13 million 

focused on creating homeownership opportunities 

for low-income residents in neighborhoods that have 

faced challenges even before the COVID-19 pandemic. 

This includes constructing new single-family houses 

on previously vacant city-owned land in targeted 

neighborhoods and incorporating sustainability and 

energy efficiency in construction. 

Tarrant County, Texas has budgeted more than $33 

million into expanding permanent supportive housing 

as the COVID-19 pandemic highlighted the need 

for additional housing to serve its most vulnerable 

populations. The project includes grant awards to 

nonprofits that focus on housing and was facilitated 

through an application process run by the Tarrant 

County Housing Finance Corporation. 

The Knik Tribe will build 32 affordable homes for its 

elder population. The homes incorporate accessibility 

floorplans and important age-in-place features that will 

support independence.
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 7

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

7

Services for Unhoused Persons: case study

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds

Permanent Housing 

Capital Expense ($14.1M)

Fund property acquisition, 

renovation, and associated 

costs to create more 

deeply affordable housing 

units

City of Austin, Texas* invests in eight projects totaling $95.3M in SLFRF dedicated to a comprehensive, community-wide effort to 

reduce levels of unsheltered homelessness across Austin. These projects are allocated under revenue loss, under expenditure 

category 6.1: Provision of Government Services. These projects fits within a larger three-year community initiative called Finding 

Home ATX, coordinating investments from public and private sources to achieve three core objectives: (1) house an additional

3,000 individuals experiencing homelessness, (2) add 1,300 new units of affordable housing for the population experiencing 

homelessness, and (3) build a better Homelessness Response System by ensuring program access and outcomes are equitable, 

investing in social service provider capacity building and developing stronger system oversight and performance mgmt. functions.

Housing

Targeted Prevention 

($2.5M)

Fund eviction 

interventions, landlord 

mediation, financial 

assistance, rental 

subsidies, legal services, 

case management, etc.

Emergency Shelter & Crisis 

Services ($10.0M)

Fund temporary shelter, 

street outreach, and other 

crisis services for 

individuals experiencing 

unsheltered homelessness

Rapid Housing Programs 

($45.0M)

Fund rapid rehousing 

programs including case 

mgmt., housing location 

and placement services, up 

to 24 months of rental / 

utility assistance

Supporting Providers 

($5.2M)

Fund capacity building for 

organizations with the 

Homelessness Response 

System, focusing on 

equitable outcomes and 

innovative solutions

Landlord Engagement and 

Move In ($5.0M)

Fund housing barrier 

reduction efforts through 

landlord outreach and 

engagement, coordination 

of housing inventory, and 

move-in supports

Other Homeless Support 

Services ($9.5M)

Fund workforce / 

employment development, 

behavioral health, and 

benefits access services

Homeless System Support 

($4.0M)

Fund oversight and 

performance management, 

community engagement, 

and communications of the 

Homelessness Response 

System

*Recipient accounts for funding for projects under Revenue Replacement

The examples included throughout this document are based on recipient reports and their inclusion in this document does not constitute an explicit approval of these projects by Treasury. 

10

Affordable Rental Housing: case study

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds

Housing 

Supply

Wraparound 

Services

Housing

Maricopa County, Arizona invests in both the supply of affordable housing and wraparound services to assist 

tenants in maintaining and finding rental housing

Construction and Preservation of Affordable Housing ($65.2M)

Add at least 120 affordable housing units to existing affordable housing inventory, with a focus on constructing new 

affordable housing on Qualified Census Tracts or renovating existing buildings in QCTs

Longer-Term Case Management & Self Support ($4.5M)

Provide long-term case management for clients obtaining rent and utility assistance, as well as workforce assistance 

and childcare / early education assistance provided by the county or other community-based services

Eviction Prevention Legal Aid ($2.6M)

Fund expert legal counsel and county court representation for tenants facing eviction due to nonpayment of rent

Navigation and Application Assistance ($3.9M)

Fund navigation and application assistance for seeking rental or utility assistance and emergency / temporary housing

Payments to Landlords ($11.6M)

Direct payments to landlords and utility companies with tenants facing eviction due to nonpayment of rent with 

assurances the tenants will not be evicted one money is received, identified through the ERA program

Rental and Utility Assistance ($0.8M)

Rent and utility payment assistance to individuals who lost jobs or had significant income reduction due to the 

pandemic

The examples included throughout this document are based on recipient reports and their inclusion in this document does not constitute an explicit approval of these projects by Treasury. 
8 U . S . D E P A R T M E N T O F T H E T R E A S U R Y 

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Supporting the workforce

SLFRF recipients have budgeted nearly $11 billion in SLFRF funds for more 

than 3,500 projects to create jobs and opportunities for workers in response 

to the negative economic impacts of the pandemic on communities.

Many SLFRF projects are using their funds to help workers enter or re-enter the workforce and find 

good-paying jobs, helping to build a stronger recovery. Key areas of workforce investment include 

helping impacted workers enter in-demand careers, with a particular focus on assisting people that 

have barriers to employment and preparing for industries of the future such as those catalyzed by 

the Inflation Reduction Act, the Creating Helpful Incentives to Produce Semiconductors and Science 

Act (CHIPS), and the Bipartisan Infrastructure Law. Recipients have invested in programs including 

apprenticeship and pre-apprenticeship initiatives, job training developed in partnership with labor and 

the private sector, and supportive services to ensure parents have affordable childcare while they work. 

Examples of how recipients are using SLFRF to invest in workers include: 

Detroit, Michigan budgeted nearly $59 million for 

Detroiters for Skills for Life, a training and career 

readiness program for residents that continue to face 

economic hardships exacerbated by the COVID-19 

pandemic. The program provides employment and skill 

and career-building activities and assists in removing 

barriers to employment by offering disconnected 

workers on-ramps so that they may earn income 

while building critical skills to improve long-term 

employment and job retention prospects. 

The State of Maine budgeted $1.5 million for the 

Maine Apprenticeship Program that is specifically 

focused on building high quality pre-apprenticeship and 

apprenticeship programs for the clean energy sector 

in partnership with businesses, industry associations, 

unions, education and training providers, and 

community-based organizations. 

Pima County, Arizona budgeted over $5 million for a 

‘Micro-Pathways’ program to provide participants with 

financial support to access short-term programs that 

lead directly into in-demand jobs with family-sustaining 

wages. The county will also support apprenticeships 

and other workforce programs focused on high growth 

career fields. 

Roanoke, Virginia obligated $3 million to the Star City 

Works program devoted to identifying the needs of 

employers in high-growth, high-potential sectors and 

to filling any gaps that may exist in the local workforce. 

The program includes training, work-based learning 

opportunities, and wrap-around supportive services 

(transportation, childcare, food assistance, utility/

mortgage assistance). 

The Lovelock Paiute Tribe is assisting working parents 

with long-term solutions for childcare. The pandemic 

reduced childcare in an area that already had an 

ongoing lack of options. The Tribe is constructing 

both a daycare and a Head Start to assist families and 

provide comprehensive early childhood education.

Salt Lake City, Utah obligated $1.5 million to cover 

payroll and benefits to hire positions that were unfilled 

due to the negative economic impact of the pandemic 

on public sector employment. 

Travis County, Texas budgeted more than $6 million 

for a workforce development program targeting the 

pandemic’s effect on local industries by providing 

training aligned with industries in the community 

workforce development plan. The program provides 

supportive services including childcare, transportation 

assistance, laptops and mobile hotspots, educational 

assistance stipends, work-related payments, and 

subsidized employment while in work-based learning 

or apprenticeship programs.
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 9

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

18

Job Training: Case Study

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds

State of Idaho invests $50.0M in Leading Idaho, comprised of four projects that enable workforce support, 

training, and employment readiness initiatives:

Talent Pipeline Management (TPM)

Goal: identify / align workforce training to high quality jobs 

Tactic: fund a TPM Project Manager in each of 6 regions and 

Project Managers in manufacturing in construction. Project 

managers will be employed through regional organizations 

(e.g. colleges, chambers, economic development groups).

Outcomes: 30 employer collaboratives to align training and 

recruiting

TPM Implementation

Goal: invest in training infrastructure, equipment, curriculum

Tactic: supplement Workforce development Training Fund 

over 2-years, and invest in simulators and mobile training 

equipment to cover acquisition costs for colleges and industry 

organizations

Outcomes: 3,790 ongoing “training slots” made available per 

year

Idaho Launch

Goal: provide financial assistance to Idahoans to access the 

training

Tactic: provide financial assistance to approved job trainees, 

as well as tech improvements to increase public access and 

community outreach and engagement activities

Outcomes: 6,370 trainees receiving financial assistance by 

December 31, 2023

Next Steps Idaho

Goal: improve technology resources that connect individuals 

to jobs – including work-based learning

Tactic: tech improvements to increase public access and 

delivery of Next Steps Idaho, including resume and cover 

letter builder by December 31, 2023

Outcomes: 1,000 Idahoans with Next Steps Idaho portfolios

Workforce Support

The examples included throughout this document are based on recipient reports and their inclusion in this document does not constitute an explicit approval of these projects by Treasury. 

16

Job Training: Case Study

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds

State of Connecticut invests $70M in rolling out CareerConneCT through the Office of Workforce Strategy. The 

program will focus on job training programs aimed at getting unemployed inviduals or individuals significantly 

impacted by the pandemic back to work in high demand industries:

Train and place 

5,500-7,000 

students and job 

seekers into indemand industries 

with a focus on 

reentry for 

formerly 

incarcerated 

inviduals to 

transition back to 

the workforce

5 Regional Workforce Development Boards 

collaborate with regional training providers and 

companies to inform the design of each application

Healthcare

Manufacturing

IT

Bioscience

Clean Energy

Construction

Additional Resources to support education and 

training to expand state’s healthcare workforce 

Collaboration with 26 Non-profit organizationsto 

support rollout and implementation

Creation of multiple non-degree training programs 

with pipeline into high-paying jobs in bioscience 

industry

Achieve the 

following goal:

Through the 

following levers:

Into the following 

industries:

Workforce Support

The examples included throughout this document are based on recipient reports and their inclusion in this document does not constitute an explicit approval of these projects by Treasury. 
10 U . S . D E P A R T M E N T O F T H E T R E A S U R Y 

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Supporting small businesses

SLFRF recipients have budgeted $4.4 billion for over 1,100 projects to support 

small businesses and small business development.

The ARP and other recovery programs included decisive action to stabilize small businesses, 

helping them keep their doors open and staff on payroll. But beyond the immediate crisis, the ARP 

is supporting transformational investments in expanding access to credit and entrepreneurship 

support in underserved communities, including providing technical assistance and grants that provide 

investment capital and loans to small, minority, and women-owned businesses. These programs will 

expand opportunity, strengthen the economy in places underserved for far too long, and increase 

our resilience to the next crisis. These investments complement other Administration investments 

including the ARP’s State Small Business Credit Initiative, which is discussed in more detail below.

Examples of how localities are investing their SLFRF into their communities’ small businesses include:

Cincinnati, Ohio spent $1 million to deliver operational 

grants and training to new and established womenowned businesses to create job opportunities for 

residents and entrepreneurship opportunities for 

women, including women in business that have carried 

a disproportionately high burden in managing the 

social challenges of the pandemic. 

McHenry County, Illinois obligated more than $1 

million for the Advance McHenry County Manufacturing 

Initiative, which provides manufacturers with 

customizable technical assistance and training 

solutions to rebound from the pandemic, be more 

globally competitive, and increase resilience to future 

economic shocks. The program is a partnership 

between the county’s college system and workforce 

network board that offers ten categories of technical 

assistance aligned with the U.S. Department of 

Commerce’s Baldridge Performance Excellence 

Framework. 

Lee County, Florida obligated $250,000 to assist small 

businesses disproportionately affected by COVID-19 

by targeting businesses in Qualified Census Tracts and 

low- and moderate-income designated areas who had 

substantial declines in gross receipts and have less 

access to credit. The project will provide technical 

assistance, counseling, or business planning services to 

provide individualized and group training in business 

planning and improvement. 

The State of Maryland budgeted $70 million to provide 

financial support to new or expanding businesses, 

including by designating funds for the Maryland Small, 

Minority, and Women-Owned Businesses Account, 

which gives grants to eligible fund managers to provide 

investment capital and loans to small, minority, and 

women-owned businesses. 

Sacramento County, California budgeted nearly 

$3 million to provide assistance to small businesses 

that were negatively impacted by COVID-19 through 

outreach, technical assistance, training, and one-onone consulting in various languages to engage hard-to 

reach businesses using culturally appropriate methods. 

The Douglas Indian Association developed a Tribal 

Fisherman Grant to assist small business owners who 

have maintained a historic Tribal presence in the 

commercial fishing and seafood industry. Demand for 

fresh seafood plummeted as restaurants, hotels, and 

catering businesses shuttered during the pandemic. 

The grants intend to offset the escalating fuel costs, 

transportation restrictions, and a decrease in salmon 

catches to help Tribal citizens economically recover.
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 11

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Investing in infrastructure

SLFRF is allowing state, local, Tribal, and territorial governments to make 

key investments in infrastructure projects that respond to needs that were 

highlighted by the pandemic and that will support future economic growth. 

Overall, more than 2,600 governments have budgeted more than $24 billion for almost 7,500 critical 

infrastructure projects that support expanded access to high-speed internet and clean water. SLFRF 

is helping states and localities to further supercharge the additional historic federal investments in 

infrastructure delivered by the Biden-Harris Administration through the Bipartisan Infrastructure Law 

and complementing the ARP investment in expanded affordable highspeed internet access through 

the Capital Projects Fund, which is discussed in more detail below.

In January 2022, when Treasury issued the final rule for SLFRF, it included an expanded set of eligible 

lead remediation uses, including replacement of faucets and fixtures in schools and daycares, and 

confirmed recipients’ ability to use funds for the replacement of lead services lines. Recipients have 

budgeted over $365 million in lead remediation projects. Recognizing that not all households and 

communities are served by water and sewer systems, the final rule also expanded eligible uses to 

include infrastructure to improve access to safe drinking water for families served by residential wells. 

Examples of how governments are investing their SLFRF in infrastructure projects include:

The State of Alabama budgeted $51 million to develop 

a statewide middle-mile fiber network that will support, 

catalyze, and facilitate future last-mile projects. 

American Samoa budgeted $10 million for broadband 

development as the pandemic made clear that remote 

work, distance learning, and telehealth are essential 

services. The territory will work with local internet 

service providers to support the delivery of internet 

service that reliably meets or exceeds symmetrical 

upload and download speeds of 100 mbps. 

Carroll County, Maryland budgeted $15 million to 

make investments in broadband infrastructure in 

response to COVID-19 when households and businesses 

lacking reliable high-speed service were at a significant 

disadvantage in areas such as educational, economic, 

and health opportunities. Carroll County will increase 

access to the 12% of Carroll households and businesses 

currently unserved by a high-speed connection by 

providing 100/100 mbps service that will include an 

option for low-income customers. 

Janesville, Wisconsin budgeted over $2 million in 

order to improve drinking water quality by replacing 

publicly owned lead pipes. 

Rankin County, Mississippi budgeted $26 million for 

45 projects that are improving water quality protection, 

floodplain management, environmental restoration, 

and wetlands restoration. 
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OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Capital Projects Fund

The American Rescue Plan’s Coronavirus Capital Projects Fund (CPF) is a $10 billion down payment on 

the Biden-Harris Administration’s goal of connecting every American household to affordable, reliable 

high-speed Internet. In addition to broadband infrastructure, CPF funds can also be invested in other 

critical capital projects that enable work, education, and health monitoring in response to the public 

health emergency, including laptops, public Wi-Fi, and multipurpose community centers.

To date, the CPF has awarded approximately $5 billion to 34 states that will be invested in high-speed 

internet infrastructure estimated by states to reach more than 1.4 million homes and businesses. To 

date, CPF has additionally awarded more than $38.5 million to 231 Tribal governments, and maintains 

an updated list of Tribal projects as they are awarded. 

Putting broadband affordability front and center: CPF is designed to not only connect families 

to the Internet, but ensure that their connection is affordable. As a result, Treasury requires that 

all service providers participate in the Federal Communications Commission (FCC)’s Affordable 

Connectivity Program (ACP)—which provides a discount of up to $30 per month to qualifying 

households (or up to $75 per eligible household on Tribal lands). To further lower costs, President 

Biden and Vice President Harris announced the Administration has secured commitments from 20 

leading internet service providers—covering more than 80% of the U.S. population—to offer all ACPeligible households high-speed, high-quality internet plans for no more than $30 per month. As a result 

of this agreement and the ACP, eligible households can receive internet access at no cost and can 

check their eligibility and sign up at GetInternet.gov.

Laying the groundwork for future investments: In addition to the $10 billion provided by CPF, 

governments have reported budgeting an additional nearly $7.3 billion in SLFRF funds towards 

broadband. Together, these funds can be blended and braided to have a greater impact. The ARP 

programs and the Bipartisan Infrastructure Law are also working in tandem to close the digital 

divide—deploying high-speed internet to those without access and lowering costs for those who 

cannot afford it. Treasury additionally entered into a Memorandum of Understanding on May 12, 2022, 

with the FCC, the National Telecommunications and Information Administration at the Department 

of Commerce, and the Department of Agriculture to, among other things, develop consistent and 

complementary reporting processes and share information with each other about broadband projects.  

Treasury continues to make progress reviewing and approving states’ CPF applications, and will be 

announcing additional awards for states’ broadband plans throughout 2023. 
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 13

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Examples of how states are investing their CPF awards include:

Louisiana was approved for $176.7 million 

(representing 100% of its available CPF funding) for 

the state’s new Granting Unserved Municipalities 

Broadband Opportunities (GUMBO) program, a multiphase, broadband infrastructure competitive grant 

program. Louisiana estimates that projects receiving 

funding from this CPF award will close the digital divide 

for approximately 25% of all locations lacking highspeed internet access in the state and connect nearly 

88,500 homes and businesses currently lacking access 

to internet at speeds of 25/3 Mbps.

Virginia was approved for $219.8 million (representing 

100% of its available CPF funding) and will use funds 

to expand last-mile broadband access to an estimated 

76,873 locations, approximately 28% of locations the 

state estimates lack access to high-quality broadband 

service. Through a competitive grant-making program 

overseen by the Virginia Telecommunication Initiative 

(VATI), local governments in partnership with internet 

service providers apply for funds with the goal of 

deploying universal coverage solutions in the localities 

involved.

West Virginia was approved for $136.3 million 

(representing 100% of its available CPF funding), and 

estimates that projects receiving funding from this CPF 

award will serve 20,000 locations, or approximately 

10% of locations in the state that lack access to highspeed internet. The state will use three separate grant 

programs that focus funding for last-mile connections 

to homes and businesses currently without access 

to internet at speeds of at least 25/3 Mbps. The Line 

Extension Advancement and Development Program 

(LEAD) will fund the extensions of last-mile broadband 

networks that can be constructed quickly, the Major 

Broadband Projects Strategies Program (MBPS) will 

fund larger-scale projects designed to serve large 

numbers of eligible addresses, and GigReady will 

provide local governments with the opportunity 

to utilize SLFRF as matching funds for broadband 

infrastructure projects. Each of these three programs 

is designed to enable funding to reach areas that are 

hardest to serve due to low population density, rurality, 

or other factors.
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OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

CPF Awards to Date

Recipient Locations Served 

(estimated by states)

Award Amount

(Millions) 

Alabama 55,000 $191.9 

Arizona 127,807 $99.4 

Arkansas 35,000 $158 

Colorado 18,000 $170.8 

Connecticut 10,000 $41 

Florida 48,400 $248 

Georgia 70,000 $250 

Illinois 87,163 $253.68 

Indiana 55,349 $203 

Iowa 18,972 $152 

Kansas 21,300 $84 

Kentucky 45,000 $182.8 

Louisiana 88,500 $177 

Maine 22,500 $110 

Maryland 16,667 $95 

Massachusetts 16,000 $145 

Michigan 67,857 $250 

Minnesota 32,917 $127 

Missouri 37,979 $196.7 

Nebraska 21,000 $88 

Nevada 40,187 $55.2 

New Hampshire 24,000 $122 

New Mexico 40,611 $117 

North Carolina 78,100 $177.7 

North Dakota 3,965 $45 

South Carolina 31,650 $185.8 

Tennessee 50,000 $185 

Texas 152,000 $363.8 

Utah 3,080 $10 

Vermont 13,818 $90 

Virginia 76,873 $220 

West Virgina 20,000 $136 

Wisconsin 8,000 $40 

Wyoming 11,700 $70.5 

1,449,395 $5,041 
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 15

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Emergency Rental Assistance Program

The COVID-19 pandemic put millions of renters at risk of losing their homes, aggravating a crisis in 

housing affordability that pre-dated the pandemic. By December 2020, nearly one in five renters 

reported being behind on rent, with renters of color especially likely to report being behind. One in 

seven renters viewed the risk of eviction within the next two months as “very likely.” 

The Emergency Rental Assistance (ERA) program has provided a critical lifeline to renters throughout 

the pandemic, while helping to build lasting eviction prevention infrastructure across the country. 

Despite projections of an eviction “tsunami” following the end of the CDC eviction moratorium 

in August 2021, eviction filings nationally in 2021 remained 26% below historic averages in the 10 

months since the end of the moratorium, based on an analysis of data collected by the Eviction Lab at 

Princeton University, and remained at pre-pandemic levels in 2022. Matthew Desmond—the founder of 

Princeton University’s Eviction Lab—has said that in conjunction with the federal eviction moratorium, 

ERA reflects the “the deepest investment in low-income renters the federal government has made 

since the nation launched its public housing system” and “the most important eviction prevention 

policy in American history.” Altogether, ERA has made $46.55 billion available to promote housing 

stability—$25 billion under the ERA1 program, which Congress created at the end of 2020, and $21.55 

billion under the ERA2 program established by the ARP. 

Treasury took swift action to deliver assistance to millions of renters: The Administration 

worked swiftly to disburse tens of billions of dollars in ERA funds to jurisdictions around the country. 

At the same time, Treasury provided extensive support to hundreds of communities as they created 

unprecedented rental assistance and housing stability infrastructure through the ERA program. The 

result was that an eviction spike that might have occurred absent the moratorium never materialized. 

Princeton’s Eviction Lab found that in 2021 alone, the ERA program, in conjunction with other 

Administration policies, helped to prevent 1.36 million eviction cases—a conservative estimate 

because the financial effects of the pandemic put at least twice as many renters as normal at risk 

of eviction. Through December 2022, the ERA program has made over 10.3 million rental assistance 

payments, and the vast majority of ERA funding has been deployed in communities across the country. 

Treasury developed flexible program guidance and reallocated program funds, steps which 

both maximized and accelerated assistance for renters: Flexibilities in Treasury’s guidance—such 

as fact-specific proxies and self-attestation—allowed programs to simplify documentation requirements 

while promoting strong program integrity, ensuring that communities could deliver assistance to renters 

in need quickly. In addition, Treasury has reallocated over $4.3 billion of ERA funds—maximizing the 

support available to renters by shifting funds that could otherwise go unspent to jurisdictions with 

demonstrated need for assistance and program capacity. Reallocation has incentivized best practices 

to facilitate assistance as well. For instance, Treasury allowed some jurisdictions to retain funds at risk 

of reallocation by adopting plans to improve program performance. Hundreds of communities have 

received additional funds through reallocation—often through voluntary reallocation processes in which 

grantees worked together to shift funds between one another. 

The ERA program catalyzed a broad expansion in lasting eviction-prevention infrastructure 

and expanded affordable housing: Treasury’s ERA guidance has empowered communities to 

leverage ERA resources to expand eviction prevention services, including eviction diversion programs, 
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OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

housing counseling, and other initiatives. While eviction diversion programs were uncommon before the 

pandemic, at least 180 jurisdictions across 36 states have launched or strengthened eviction diversion 

programs with ERA, seeding initiatives that have significantly limited eviction rates. Treasury has also 

encouraged governments to leverage ERA2 funds to expand affordable housing, helping communities 

address long-term housing affordability challenges. Governments have continued to fund these 

programs with other sources of funding—including SLFRF—after spending through ERA allocations. 

Advancing equity and reaching historically marginalized communities, including Tribal 

and rural communities: Throughout its work on ERA, Treasury has prioritized advancing equity and 

supporting renters in underserved, marginalized communities. Research has found that renters from 

marginalized groups and those most likely to face eviction have benefited from ERA: extremely lowincome renters received close to two-thirds of ERA assistance, women received nearly 70 percent, and 

Black renters received almost half. Treasury has also provided extensive support to Tribal communities 

to ensure that Tribal ERA programs have been well-positioned to serve renters, and took significant 

policy steps in reallocation to maximize the ERA funding available to Tribal governments. Finally, to 

strengthen ERA in rural communities, Treasury engaged with ERA programs in rural areas to support 

both their outreach strategies and facilitate statewide coordination on housing stability issues.

Looking forward, in addition to communities using ERA 2 to promote direct assistance and longerterm needs, many communities are continuing to provide support to renters after expending their ERA 

funds, often leveraging SLFRF. Through December 31, 2022, communities provided rent, mortgage or 

utility assistance to more than 3.6 million individuals using SLFRF. Moreover, communities are working 

to build on the eviction prevention infrastructure that ERA has helped to grow, and Treasury continues 

to work with and encourage these governments to take additional steps to prevent evictions and 

promote housing stability in the long term.

Examples of jurisdictions’ work to support renters with ERA include: 

Pierce County, Washington conducted far-reaching 

outreach to stand up its ERA program, as the county 

had not previously invested in rental assistance 

infrastructure. Clark County conducted more than 200 

outreach events at libraries, sent postcards to residents 

in 45 languages with information on rental assistance, 

and pursued targeted outreach to underserved 

communities. Washington State has now funded a 

permanent rental assistance program.

The State of Alaska, in partnership with the 

Municipality of Anchorage and 15 agencies representing 

148 Tribes, launched a mobile-friendly ERA application 

that included text messaging features to facilitate 

applications. Due in part to the ease of applying, 

approximately one-third of Alaskan renters applied to 

the State’s program. 

Washington, DC leveraged flexibilities in Treasury’s 

ERA guidance—including self-attestation and factspecific proxies—to ensure that rental assistance was 

timely delivered to eligible households. DC has also 

leveraged its own funding resources to continue a 

rental assistance program, and recently worked with 

a task force of community leaders across sectors to 

release a framework for further efforts to strengthen 

eviction prevention. 

Wichita, Kansas expanded ERA access by providing 

self-service ERA application kiosks around the city, 

with particular focus on low-income communities. In 

addition, the City worked to provide case management 

services for households facing eviction in order 

to address underlying causes of housing stability, 

including through connections to job training and other 

services and relocation to more affordable housing. 
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 17

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Homeowner Assistance Fund

The Homeowner Assistance Fund (HAF) was designed to support homeowners experiencing financial 

hardship, working in conjunction with a range of other foreclosure prevention initiatives implemented 

by the Biden-Harris Administration that has resulted in historically low foreclosure filings. HAF 

programs across the country are assisting homeowners both by providing nearly $10 billion in direct 

assistance and by helping homeowners access relief through their mortgage servicers, including loss 

mitigation on government-backed loans. 

The Administration’s swift actions to prevent foreclosures, including HAF, have 

resulted in historically low foreclosure rates: The Administration took a range of actions to 

prevent foreclosures shortly after the COVID-19 outbreak, including a foreclosure moratorium, 

increased options for mortgage payment forbearance, and enhanced loan modifications to resolve 

delinquencies, which together with HAF have helped keep mortgage delinquencies and foreclosures 

below pre-pandemic levels. HAF programs began to provide assistance in early 2022 to build on the 

progress of the earlier initiatives; as of December 2022, HAF has provided a lifeline to over 230,000 

families at risk of losing their homes. Total obligations and expenditures across the program more 

than doubled from July through the end of September—and real-time dashboards published by 

many states show significant further acceleration in the months since then. Despite the economic 

disruptions caused by COVID-19, foreclosure starts are 30% below pre-pandemic levels, according to 

Black Knight data, even after the expiration of several emergency foreclosure protections from the 

height of the pandemic.

Treasury’s implementation has lifted up best practices, helping to promote historic reach 

to low-income areas and underserved communities: Treasury required recipient governments 

to target assistance based on data-driven assessments of homeowner needs, with an emphasis on 

data that identifies disparate hardships across demographic groups. Moreover, Treasury required a 

planning process, which included local community input. This process culminated in the submission 

of plans to Treasury, which provided specific feedback for each of the plans submitted by state, 

territorial, and Tribal governments with the goal of promoting swift and equitable access to HAF 

funding. These efforts have helped to produce a more equitable distribution of assistance, with 

substantially broader reach to economically vulnerable and traditionally underserved homeowners 

than prior federal mortgage assistance and foreclosure prevention programs: 57% of HAF assistance 

was delivered to very low-income homeowners (those earning 50% of area median income and below); 

35% of HAF homeowners self-identified as Black and 20% self-identified as Latino; and 64% of HAF 

beneficiaries were female. 

Treasury has worked closely with agency partners to promote support for HAF 

recipients–establishing additional protections to help homeowners avoid foreclosure:

Treasury has coordinated closely with the White House and other federal agencies to ensure that 

HAF supplements other federal assistance for homeowners and that funds are most effectively used 

to help homeowners in need. Secretary Yellen and several other Cabinet Secretaries joined together 

to urge mortgage servicers to pause all foreclosure proceedings for any homeowner applying for 

HAF assistance. These efforts have led to major servicers implementing foreclosure pauses for HAF 
18 U . S . D E P A R T M E N T O F T H E T R E A S U R Y 

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

applicants, enabled by Treasury’s ongoing work with servicers and states to improve communication 

and notification of HAF applications. Recently, the Department of Housing and Urban Development 

announced a policy change that will allow certain HAF applicants and recipients to much more easily 

access loss mitigation options, which provide additional support to homeowners who may need 

assistance from multiple sources to stay in their homes.

Looking forward, HAF programs continue to provide active assistance across the country. Moreover, 

several recipient governments have decided to use other Treasury funds—such as funds from the 

SLFRF program—to provide assistance to additional families in need. HAF funds are available to be 

spent to support homeowners until September 30, 2026. Treasury continues to lift up best practices, 

engage recipient governments on strategies to increase uptake and speed of program funding, and call 

on servicers to swiftly communicate with states to help homeowners in need.

Promising Practices include:

The State of California HAF Program has focused 

its outreach on underserved communities through 

multilingual, culturally competent assistance resources. 

For instance, the HAF application is available in six 

languages and the program’s contact center—which has 

handled over 190,000 calls as of Jan. 1, 2023—can 

provide assistance in more than 200 languages. The 

state has also worked to keep the application as 

streamlined as possible; if an applicant has the 

necessary documents ready, the state estimates that 

the application can be completed in less than 15 

minutes. Due to these efforts, as of Jan. 1, 2023, 88% of 

applicants surveyed by the program (5,676 applicants) 

reported that the application was easy to complete, and 

91% said the documents were easy to upload.

The State of Michigan’s HAF program, after 

conducting a systemwide assessment, realized it 

needed to increase the availability of customer service 

agents to help homeowners apply. To quickly increase 

staff capacity, the HAF program contracted with 

the state’s 211 service to answer questions, fill out 

applications for those without internet access, provide 

status updates to applicants and refer homeowners to 

other services they need.

The State of Nevada’s HAF program uses a datadriven approach to recalibrate program offerings based 

on the most common reasons for application denial, 

thereby continuously improving its application process 

and contacting denied applicants to inform them of 

other opportunities for assistance. Nevada’s program 

also directly reached out to applicants who did not 

return to the website to complete their applications. 

These efforts, combined with increased marketing, 

resulted in a 300% increase in households assisted over 

a three-month period (July through September 2022).
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 19

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

State Small Business Credit Initiative

The State Small Business Credit Initiative (SSBCI), reauthorized and expanded by the American Rescue 

Plan, provides nearly $10 billion to states, territories, D.C., and Tribal governments for investments 

in small businesses to expand access to capital, to promote economic resiliency, and to create new 

jobs and economic opportunity—especially in underserved communities still reeling from the effects 

of the pandemic. Small businesses were hit especially hard by the pandemic, in urban, suburban and 

rural communities alike, as the economy faced a historic disruption. Building on a prior iteration of the 

program created in 2010, the SSBCI program provides capital to help existing small businesses expand 

and new small businesses start up. 

Data suggests that the pandemic hit minority-owned small businesses particularly hard, exacerbating 

disparities that existed long before COVID-19. The SSBCI gives states and Tribes the tools to support 

small business lending and startup equity investments in all communities, especially in parts of the 

country and in marginalized communities working to develop an entrepreneurial finance ecosystem. 

In doing so, SSBCI is serving as part of the Biden Administration’s broader small business agenda, 

which has helped support a record-breaking 10.5 million small business applications in 2021 and 2022, 

according to the Census Bureau. 

SSBCI will catalyze tens of billions of dollars to expand access to capital for small 

businesses and underserved entrepreneurs: SSBCI provides funding that states, territories, 

and Tribal Governments can use to help small businesses receive loans or equity/venture capital 

investments to fuel their growth and job creation potential. Jurisdictions will deploy SSBCI capital 

to crowd in private financing in emerging venture capital markets and offer credit-enhancing debt 

products to help underserved small businesses address capital needs. With these programs, recipient 

governments will close gaps left by other state or federal programs, existing private sources of capital, 

or market-specific challenges. Treasury has now approved nearly all state and territorial plans 

representing 96% of the initial capital program funding allocated to states and territories under the 

program. In addition, Treasury is reviewing applications corresponding to over 200 Tribal governments 

and over $580 million in potential SSBCI funding. SSBCI is designed to catalyze up to $10 of private 

investment for every $1 of SSBCI funding and is expected to result in tens of billions of dollars in new 

small business financing across the country before 2030.

Supporting innovative approaches to catalyze small business growth: Recipient governments 

submitted innovative approaches to deploying the SSBCI in their respective jurisdictions. For example, 

Minnesota’s Department of Employment and Economic Development (DEED) is implementing an 

Automation Loan Participation Program (ALPP) through SSBCI. The program offers a companion loan 

to private financing provided by a lender to purchase machinery, equipment, and software designed to 

increase manufacturing efficiencies. The program complements an existing state program that funds 

training for workers to operate new automation equipment. Minnesota expects the ALPP to increase 

the number of re-shored manufacturing operations and allow companies to move some outsourced 

activities in-house. 
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OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

SSBCI has been implemented with an eye towards supporting the most vulnerable 

businesses and underserved business owners: The Federal Reserve Banks’ 2021 Small Business 

Credit Survey reported that only 13% of Black-owned firms and 20% of Hispanic-owned firms received 

all of the non-emergency funding sought, relative to 40% of white-owned firms—underscoring the 

need to prioritize equity in the administration of the SSBCI program. SSBCI is a tool for recipient 

governments to support small businesses owned by people of color, women, individuals living in rural 

or Tribal communities, and otherwise underserved individuals, and to support the creation of wealth 

in households and communities. SSBCI includes $2.5 billion in funding and incentive allocations to 

support the provision of capital to underserved businesses and jurisdictions that succeed in reaching 

those businesses – with $1 billion of these funds to be awarded to jurisdictions based on their success 

in reaching underserved businesses. In addition, SSBCI includes over $700 million in allocations for 

Tribal governments, which will be used by hundreds of Tribes to support small businesses owned 

and operated by Tribal members or that operate on Tribal lands. The prior version of this program, 

which ran from 2010 to 2017, did not include these set-asides for underserved groups and Tribal 

governments. With an eye towards equitable administration, Treasury has also announced a historic 

data collection effort as part of SSBCI intended to help Treasury analyze the distribution of SSBCI funds 

and promote and track equity goals in the use of those funds. 

SSBCI will provide small businesses with hundreds of millions of dollars in technical 

assistance not only to apply for SSBCI funds, but also a broader set of state and federal small 

business programs, building capacity for businesses to access capital in the long term: Treasury 

has announced the availability of $300 million in technical assistance, with $200 million available to 

states, territories, D.C., and Tribal governments to provide assistance to qualifying small businesses 

applying for SSBCI or certain other small business financing. In addition, Treasury has transferred $100 

million for a program run by the Minority Business Development Agency at the Department of Commerce, 

which will provide funding to incubators and accelerators across the country to train underserved 

entrepreneurs seeking resources from SSBCI and other programs across the country. This technical 

assistance – along with another $200 million in technical assistance that will be made available in the 

future – will help ensure that SSBCI supports entrepreneurial ecosystems and creates jobs by allowing 

small businesses to access a range of small business assistance.

SSBCI is a part of broader Treasury initiatives that increase access to capital for small 

businesses and communities across the country: For example, through December 2022, 

Treasury made $8.38 billion in investments to dramatically scale up the work of 170 community 

financial institutions through the Emergency Capital Investment Program that will increase lending 

to small businesses, minority-owned businesses, low- and moderate-income consumers and other 

financially underserved communities. Additionally, the CDFI Equitable Recovery Program will make 

approximately $1.75 billion in grants available to provide funding to CDFIs to expand lending, grant 

making and investment activities in low to moderate income communities and to borrowers with 

significant unmet capital and financial services needs that have experienced disproportionate 

economic impacts from the COVID 19 pandemic. These initiatives, paired with broader Treasury 

and Administration support for small business, have helped support record numbers of new small 

businesses and strong growth in a range of critical industry sectors.
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 21

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Treasury has now approved 51 out of 56 state and territory plans, representing 96% of the capital 

funds allocated to states and territories, while continuing to review Tribal submissions. In the coming 

months, SSBCI programs will continue ramping up and providing support to small businesses across 

the country, buttressed by technical assistance funding to help small businesses access assistance. 

Illustrative examples of SSBCI programs include:

Engaging Underserved Business Owners in Utah: 

Utah’s Governor’s Office of Economic Opportunity (“Go 

Utah”) developed SSBCI programs focused on filling 

capital needs for small businesses that are historically 

underserved. Utah operates several credit support 

programs, including a Capital Access Program that 

is anticipated to provide micro-loans to socially and 

economically disadvantaged small businesses that may 

have a limited credit history or face collateral shortfalls, 

while the Loan Participation Program partners with 

community development financial institutions to 

provide slightly larger loans for small businesses that 

may not be fully integrated into the conventional 

market. 

Reaching Rural Businesses in Montana: The Montana 

Department of Commerce operates a loan participation 

program through the Montana Board of Investment 

(MBIV) with a goal of enabling businesses statewide 

to access the programs. MBIV developed a network 

of lenders across the state, including Community 

Development Financial Institutions and local revolving 

loan funds. 

Growing the Innovation Ecosystem in Rural Vermont:

Vermont is implementing a venture capital program 

to invest in start-ups across the state, with a focus on 

growing the innovation ecosystem outside Vermont’s 

more populous hubs. Areas of concentration include 

renewable energy, innovative agriculture solutions, 

advanced manufacturing, and healthcare companies. 

Enabling Diverse Venture Capital Managers in 

Pennsylvania: In October 2022, Pennsylvania 

announced their first commitment of SSBCI funds 

through their venture capital program. The program 

is focused on supporting venture capital investments 

in new funds under the management of underserved 

venture capital firms and on reaching underserved 

entrepreneurs.
22 U . S . D E P A R T M E N T O F T H E T R E A S U R Y 

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Historic Tax Relief for Working Families and Record Low 

Child Poverty 

The ARP delivered the largest ever Child Tax Credit, the largest ever Earned Income Tax Credit for 

workers without dependent children, and the largest ever Child and Dependent Care Tax Credit, 

helping families and low-income workers make ends meet. The advance monthly Child Tax Credit 

payments, which reached 38 million families with 62 million children, also showed that family tax relief 

payments could reliably be delivered monthly. Data released by the Census Bureau last year showed 

that the expanded Child Tax Credit was the leading driver behind a 46% decline in child poverty 

in 2021, cutting child poverty to its lowest-ever recorded level. The Administration is committed 

to rewarding work and fighting child poverty by pushing for Congress to permanently restore the 

expansion of the Child Tax Credit and Earned Income Tax Credit included within the ARP.

Additionally, the ARP permanently expanded access to the Child Tax Credit and Earned Income Tax 

Credit for working families in Puerto Rico. The ARP lifted an exclusion that kept low-income families in 

Puerto Rico with fewer than three eligible children from benefiting from the Child Tax Credit, leading 

to 200,000 more families in Puerto Rico receiving the expanded Child Tax Credit when they filed taxes 

in 2022 compared to the previous year. It also helped Puerto Rico to fund a dramatic expansion of the 

Earned Income Tax Credit, tripling available benefits for workers and bringing the credit broadly in line 

with the maximum benefit available to a similar family living elsewhere in the United States.

Saving the Pension Benefits of Millions of Workers, 

Retirees, and their Families

The ARP included historic assistance to secure the pension benefits earned by millions of union 

workers and retirees. Prior to the law, over 200 multiemployer pension plans were on pace to 

become insolvent. Thanks to the Special Financial Assistance program of the Pension Benefit 

Guaranty Corporation included in the ARP – the most significant effort to protect the solvency of the 

multiemployer pension system in almost 50 years – all multiemployer pension plans that receive 

assistance are positioned to remain solvent through at least 2051, with no cuts to earned benefits. 

This assistance will protect the retirement security of an estimated two to three million union workers, 

retirees, and their families. Already, Special Financial Assistance has been approved for multiemployer 

pension plans estimated to serve over 680,000 workers, retirees, and their families—ensuring that 

recipients will receive the full retirement benefits they earned over the coming decades—and harsh 

benefit cuts for tens of thousands of retirees have been reversed. 
U . S . D E P A R T M E N T O F T H E T R E A S U R Y 23

OFFICE OF RECOVERY PROGRAMS: AMERICAN RESCUE PLAN SECOND ANNIVERSARY REPORT

Conclusion

The American Rescue Plan has been a key part of the nation’s recovery from the COVID-19 pandemic 

and the economic downturn that resulted from it. Treasury has worked to ensure that ARP funds help 

families, small businesses, and communities get back on their feet and emerge stronger out of this crisis. 

Treasury has also committed to providing strong stewardship of ARP resources by conducting 

robust oversight over these funds. Over the past two years, Treasury has established policies and 

procedures—in partnership with oversight bodies and state and local auditors—to create appropriate 

safeguards over the use of taxpayer funds. Treasury has built a risk-based, data-driven accountability 

framework designed to ensure that funds are used for their intended purpose and have the greatest 

impact in supporting a strong recovery. 

Looking ahead, Treasury will continue to work with recipients as they deploy funds in their 

communities. Treasury will support recipients as they apply best practices, working with them to 

rapidly deliver assistance to those in need while prioritizing areas likely to strengthen the economy 

over the long-run, such as affordable housing, workforce, and support for small businesses. Moreover, 

Treasury will use the lessons learned through the deployment of ARP funds at Treasury to support 

implementation of other key legislation, including the Inflation Reduction Act, CHIPS, and the 

Bipartisan Infrastructure Law. Building on the progress of the last two years, the American Rescue Plan 

will continue to support families, small businesses, and communities in the months and years ahead.