Gov. Kay Ivey put the 2022 Regular Legislative Session on hold last week by calling a special session to prioritize the allocation of federal COVID relief funds received from the American Rescue Plan Act (“ARPA”). Legislators are working to determine how best to invest about $772 million of Alabama’s approximately $1.1 billion initial installment ($580 million from the first tranche and $192 million from a separate Capital Projects Fund).
Both the House and Senate General Fund budget committees approved identical bills on Thursday, positioning the legislation for likely floor votes on Tuesday. HB1/SB1 would significantly invest in broadband, water and sewer infrastructure, and healthcare. Highlights include:
ARPA Coronavirus State Fiscal Recovery Fund
- $225 million for water and sewer infrastructure
- Administered through ADEM
- $80 million for hospitals/nursing homes/healthcare
- $51 million for broadband
- $79.5 million for the Unemployment Compensation Trust Fund
- To avoid automatic tax increases for businesses when Trust Fund runs out
ARPA Capital Projects Fund
- $191.8 million for broadband
ARPA Revenue Replacement Fund
- $36.8 million for public health/mental health/rehab services
- $34 million for broadband
- $30 million for rural hospitals
- $20 million for emergency response providers
- $11 million for reimbursements to county jails for housing state inmates
- $5 million for telemedicine
The legislation would also establish a 14-member Joint Legislative Oversight Committee on American Rescue Plan Act State Funds with the power to hold hearings.
While the legislation passed the committees with bipartisan support, any influx of stimulus funds tends to increase the potential for floor debate as lawmakers jockey for position to advocate for the interests of their constituents. Based on conversations with legislative leadership, substantive changes to the bill are not expected.
Click here to download a list of bills being tracked by our governmental relations team.
