On March 11, 2021, President Biden signed the American Rescue Plan (ARP), which provides $1.9 trillion in relief to respond to the novel coronavirus (COVID-19). The ARP includes $65 billion in direct funding for cities.
Garden Grove is expected to receive $48,374,570 to help offset lost revenue and continue providing services for our residents, businesses and visitors. The funding will be provided to the City in two payments; the first payment is anticipated as early as June 2021 and the second is to follow a year later in 2022.
Since March 2020, Garden Grove has experienced a $25.7 million cumulative loss of revenue (90% in hotel transient occupancy tax) and estimates an additional $19 million loss of revenue through FY 2021-22.
While we await detailed funding guidelines from the federal government, we are beginning to plan for the use of the ARP funds as part of our budget development process. Below are some priorities identified by the City Council. Please give us your feedback by checking the categories that are most important to you, or adding others. We will review all comments to address the community’s priorities in the City’s FY 2021-23 Biennial Budget planning.
Resources and Updates
- Overview of the American Rescue Plan Act, Garden Grove City Council Update, March 23, 2021
- American Rescue Plan Fact Sheet
- American Rescue Plan Official Website
- Fact Sheet – The Coronavirus State and Local Fiscal Recovery Funds Will Deliver $350 Billion for State, Local, Territorial, and Tribal Governments to Respond to the COVID-19 Emergency and Bring Back Jobs
- FAQ - Coronavirus State and Local Fiscal Recovery Funds