Inflation Driving Concern About ARPA Spending For Local Governments

July 6, 2023 Gongwer

The federal government offered $1.9 trillion to help local governments stabilize their budgets in 2021 through the American Rescue Plan Act, but two years later, many local leaders in Michigan say inflation and supply chain challenges are making the one-time funding difficult to spend, according to a recent survey. Michigan counties, cities, villages and townships were allocated a total of $4.4 billion through ARPA. The Michigan Public Policy Survey asked local leaders about their experiences with the program and published the result in the June report for the University of Michigan's Center for Local, State and Urban Policy for the Gerald R. Ford School of Public Policy.