How Much Royal Oak Will Get From $350B American Rescue Plan

ROYAL OAK, MI — Royal Oak is among 49 Michigan municipalities set to receive financial help out of the $350 billion Coronavirus State and Local Fiscal Recovery fund, according to a breakdown of the plan released on Monday by the U.S. Department of Treasury.

Royal Oak is set to receive more than $28.1 million, according to the breakdown.

City Manager Paul Brake called the American Rescue plan a once-in-a-lifetime funding opportunity.

"After years, even decades, of making tough decisions to keep our city fiscally sound, we now have the chance to create a long-term plan that invests in our residents and our overall economic recovery, while paying dividends long into the future," he told Patch in an email on Tuesday.

"We are currently reviewing the new ARP guidelines, but the analysis goes beyond what we can and cannot do. Royal Oak will be working closely with our partners at the state and county to avoid duplication of efforts so that we may find ways to leverage our funding with the resources they may be offering."

Brake said he anticipates that part of the city's allocation will go toward addressing the negative economic impacts caused by the coronavirus pandemic, as well as improving the city's infrastructure.

"We will be collaborative and creative in our approach, knowing that we do not need to make any decisions immediately since these funds do not need to be allocated until 2024," he said.

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The emergency funding for local governments was established by the American Rescue Plan Act of 2021. The funds are meant to be used to respond to acute pandemic-response needs, fill revenue shortfalls among state and local governments, and support the communities and populations hardest-hit by the COVID-19 crisis, according to the Treasury.

During the Great Recession of 2007-2009, when cities and states were facing similar revenue shortfalls, the federal government didn't provide enough aid to close the gap, Treasury Secretary Janet Yellen said in a statement.

In addition to allowing for flexible spending up to the level of their revenue loss, the Treasury states, recipients can use funds to:

• Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral health care, mental health and substance misuse treatment, and certain public health and safety personnel responding to the crisis
• Address negative economic impacts caused by the public health emergency, including by rehiring public sector workers, providing aid to households facing food, housing or other financial insecurity, offering small business assistance, and extending support for industries hardest hit by the crisis
• Aid the communities and populations hardest hit by the crisis, supporting an equitable recovery by addressing not only the immediate harms of the pandemic, but its exacerbation of longstanding public health, economic and educational disparities
• Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service during the pandemic
• Invest in water, sewer and broadband infrastructure, improving access to clean drinking water, supporting vital wastewater and stormwater infrastructure, and expanding access to broadband internet