The American Rescue Plan Act (ARPA) was established in 2021 in the U.S. Government. Through its State and Local Fiscal Recovery Fund (SLFRF), the program has provided local governments with the resources to sustain critical services amid the challenges posed by the COVID-19 pandemic. These funds helped cities maintain essential services while addressing community needs through tailored, timely investments.
Two cities — Anaheim, California, and Rowland, North Carolina — are examples of how ARPA’s flexible funding helped them stabilize their budgets and support their residents.
Anaheim, a city known for its tourism-driven economy, was hit hard by the pandemic. With approximately 60% of its general fund coming from tourism-related taxes, the city faced significant revenue losses when resorts and theme parks were forced to close. However, ARPA funds allowed Anaheim to fill the gap. “It was a no-brainer”, said City Manager Jim Vanderpool. The city used ARPA funds for revenue replacement, which enabled them to maintain staff, continue city services at pre-pandemic levels, and support community vaccination efforts.
Rowland, a much smaller town in North Carolina, received $300,000 in ARPA funds, which they used to address overdue infrastructure repairs. “We care a lot about the quality of life for our citizens”, said Mayor Robert McDougald. The funds helped the town repair roads, upgrade drainage systems, and purchase a new vehicle for the public works department. Additionally, the town was able to clean up its local landfill to comply with state environmental regulations.
Both cities’ ability to allocate and spend their ARPA funds swiftly ensured addressing community needs while recovering from the pandemic.
As the December 2026 deadline to spend ARPA funds approaches, cities continue to plan and implement projects using these resources, following Treasury guidelines to ensure compliance and effective use of funds.