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Comparing the Uses of Local Fiscal Recovery Funds in the Seventh District’s Large Cities and Their Counties
Abstract: In response to the economic impacts of the Covid-19 pandemic, the U.S. federal government enacted the landmark American Rescue Plan Act (ARPA). A key component of the act was providing $350 billion in funding to state and local governments through the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. This program was designed to allow state and local governments to use the money in a fairly flexible manner to reflect how the pandemic had affected their areas’ economies. The only significant restriction was prohibiting these governments from using the funds allocated by the program to offset tax revenue losses resulting from changes in tax laws, pay debts, or replenish rainy day funds.
Keywords: public economics; Regional economy; Public Finance;
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Provider: Federal Reserve Bank of Chicago
Publication Date: 2024-07