ARPA Funding: Mayor Gallego, City Council OK Plan For Phoenix

PHOENIX, AZ — Job creation, small business loans and education funding will receive a large portion of the close to $200 million in federal relief money approved by the city of Phoenix this week.

The $198 million in funding comes from the the American Rescue Plan Act of 2021, which provides funding in several areas such as state and local aid, education, rental assistance, transit, stimulus payments for individuals, and other provisions.

Phoenix Mayor Kate Gallego and members of the Phoenix City Council signed off on the city's plan for the funding, which the city received in May, on Wednesday.

Gallego described the city's plan as a solid blueprint to boost areas of the local economy that have not recovered as quickly from the COVID-19 pandemic, such as small businesses.

“The decisions we made today put money where it matters,” said Phoenix Mayor Kate Gallego in a statement. “Although some sectors of the economy are booming, we still have small business owners hanging on by a thread, employees who lost their jobs and are trying to get back into the workforce, and kids who have fallen too far behind in school – not to mention arts communities that have been at a standstill, and veterans who are on the verge of homelessness. By offering targeted help to these groups, we give them a better opportunity for success and, in turn, improve the recovery outlook for our entire city.”

Here where most of the close to $200 million in federal funding will go:

• Assistance for Vulnerable Populations: A total of $28 million will go toward help families pay for utilities, rent and mortgage payments. An additional $31.5 million will assist individuals, families and veterans experiencing homelessness, or that need mental health care assistance. The funds will also go toward the city's heat respite facilities.
• Education: The city's plan sets aside $28.8 million for youth sports, education and after-school programs, in addition to College Depot programs to prepare teenagers for college, early literacy tutoring, sports league grants and after-school programs at city-owned parks. The money is intended to help Phoenix kids make up for lost time and get their education back on-track, the city said.
• Small and Micro Businesses: The city plans on spending $8 million to assist businesses struggling with the lingering effects of the pandemic shutdowns and slowdowns. Additionally, $2.75 million will go toward rebuilding the city's arts and culture organizations, while an extra $2 million will help small businesses find, train and retain employees.
• Jobs: The plan calls for $10 million in workforce training, as well as childcare and other barriers that keep job seekers from reentering the workforce.
• Vaccination: The city plans on spending $5 million in education, outreach and incentives to boost Phoenix's COVID-19 vaccination rate. The funding will go toward items such as converting city-owned mobile COVID-19 testing vans into mobile vaccination sites.