The American Recovery Plan Act ("ARPA") became law in March 2021 and provides $64 billion of direct/flexible aid to cities/towns across the USA to assist with COVID-19 recovery. In many California cities, the funding allocation is substantial (see examples below).
Click here to find your city’s funding allocation. Cities should receive their funding as late as mid-June, and funding will be released in two tranches: half released in the first tranche beginning May 10, 2021, and the second tranche one year after the first tranche; funds will remain available through the end of 2024. Some cities will need to apply for funds through the Treasury Department’s Portal.
What Can You Spend It On? 
  • Provision of government services via replacement of revenues reduced due to COVID-19 public health emergency (relative to FY 2018-2019) 
  • Assistance to households, small businesses, nonprofits, and impacted industries (such as tourism, travel, hospitality), and providing premium pay to essential workers 
  • Eligible Infrastructure investments in water, sewer, or broadband infrastructure 
$$ Spend Money to Make Money $$
Focus on programs that use federal dollars to improve local long-term revenue base. For example, COVID-19 accelerated many of the economic and land use trends that are changing our cities – retail spaces (and sales tax revenues) are dragging due to e-commerce, industrial distribution is booming, and residential development is in high demand. Here are some ways to capitalize on it: 
  • Retail Reimagination: Don’t give up on ‘experiential’ retail that creates a place for retail, entertainment, and engagement. Fund infrastructure for these projects. 
  • Residential Renaissance: Not just a home anymore – an office (telework) and online tax generator (e-commerce). Invest in zoning changes to unlock community potential. 
  • Not Your Father’s Industrial: The new world of industrial are cleaner distribution / delivery centers that can shore up local retail activity. Integrate industrial with retail centers and other uses. 
Add Your Local “Currency” to Federal $$ for the Best Results
Kosmont Companies is celebrating our 35th anniversary as an economic development, real estate, and public finance advisor. We have been assisting the public and private sectors for decades in bringing plans and projects to fruition.
Larry J. Kosmont, CRE®
Chairman & CEO
(213) 507-9000
Ken K. Hira
(949) 226-0288
Joseph Dieguez
Sr. Vice President
(347) 731-5307
Kosmont Companies is proud to be in the Los Angeles Business Journal 2021 Book of Lists as one of the Top 100 Minority-Owned Businesses