April 16, 2021 (Anchorage, AK) – Alaska Governor Mike Dunleavy today released his proposal for use of $1.02 billion federal American Rescue Plan Act (ARP) funds directed to the State for discretionary COVID-19 recovery efforts. The ARP, passed by Congress and signed into law on March 11, 20201, provides an additional $518 million of non-discretionary funds to the State.
“This proposed allocation of federal ARP funds is intended to assist and mitigate economic fallout from COVID,” said Governor Dunleavy. “My administration will work with the Legislature to refine these appropriations as additional guidance is provided by the federal government. I look forward to implementing a robust plan for these federal funds for the benefit of all Alaskans.”
The State of Alaska received a total of $1.02 billion in ARP funds to assist in recovery efforts from COVID-19, which authorizes funding certain programs through December 31, 2024. All states are waiting for final guidance from the federal Treasury Department. The Dunleavy administration is working with national organizations and federal agencies to clarify amounts and understand the requirements tied to these funds, and further work with the Alaska Legislature on details as additional guidance is provided.
- Protecting Alaskans – $80M
- Emergency response costs including addressing the domestic violence impacts of COVID-19 ($6M), portable equipment, and individual security including food security, and fishermen COVID-19 coverage.
- Alaska Tourism Revitalization – $150M
- Industry relief to promote tourism and adapt services for potential loss of cruise ship season.
- Economic Recovery and Innovation– $325M
- Relief to businesses and organizations impacted by the pandemic and preparing Alaska’s economy to emerge as a destination for workers, investors, and families.
- Build Alaska – Infrastructure Investment – $325M
- Alaska’s backlog of infrastructure needs includes safe water, sewer, and broadband infrastructure investments; leverage local and other funding using matching grant programs will benefit under this proposal.
- General Fund Offset – $139.26M
- Utilize ARP funding, up to $1.02B, to offset existing general fund expenditures.
The American Rescue Plan Act also provided $230.7 million for payments to Alaska communities, of which $185.4 million requires appropriation and distribution by the State of Alaska to communities based on a federal formula.
Numerous state programs were awarded increased federal funding through the ARP, totaling $220 million for public health and safety, workforce development, education, transportation, and emergency management.
The proposed legislation will be formally introduced on Monday, April 19th. Additional information on the Governor’s proposal can be found here.