What does the stimulus bill mean for me?
American Rescue Plan: Background and Impact on Haddam
COVID-19 has had devastating effects on public health, the economy, and education. To reduce hardship, the Federal Government passed three sweeping stimulus bills; the first two were during the Trump Administration (March and December of 2020) and the most recent during the Biden Administration (March 2021). Each bill sought to stimulate the economy and provide needed resources to schools, business, and government.
On March 11, 2021, President Biden signed the $1.9 Trillion American Rescue Plan (ARP) into law. While direct payments and the expanded Child Tax Credit drew most of the headlines, significant funds were made available for state and local governments, and schools.
See details below on how ARP impacts Haddam:
Unlike the first two stimulus bills, ARP gives wide latitude for how the government can spend the funds. In the case of state and local aid, funds can be used through December 31, 2024. Aid can pay for salaries, services and equipment, but may not cover existing pension obligations.
For education, districts must use 20% of their allotted funds (approximately $100,000 for Region 17 Schools) to mitigate learning loss through increased student services. The remaining 80% (approximately $400,000 for Region 17 Schools) can be used at the discretion of the district through September, 2023.
Connecticut’s State Department of Education must spend at least 50% of their reserved aid to mitigate learning loss (approximately $55 Million), 10% to offer summer enrichment programs (approximately $11 Million), and 10% to offer after school programs (approximately $11 Million).
With budget seasons underway for boards of education and town government, local elected leaders will have to make important decisions regarding this potentially transformative ARP aid.
Note: Data accurate as of March 23, 2021.