In the more than two years since the first U.S. cases of covid-19 were identified in Snohomish County, Americans watched as the virus spread to family members, friends and colleagues. We endured school closures, business shutdowns, layoffs and more, in our region and across the country.

As we learn to live with this virus, we must also use this as an opportunity to grow from the challenges of this pandemic. Covid-19 exposed and exacerbated many existing problems in our communities; from child care affordability to internet access to resources to keep small businesses open.

When schools began reopening in 2021 and the cost of childcare soared, Carolyn worried that she could not afford before and after-school childcare for her son in Washington state. Thanks to the American Rescue Plan’s child tax credit provision, Carolyn and millions of American families were able to pay for this care. While the program was temporary, it was one of many ways that the Rescue Plan had a positive impact in support of American families.

As we reach the first anniversary of President Biden signing the American Rescue Plan into law, the obvious questions include: How did it help? Where or whom did it help the most? And most importantly, did the $1.9 trillion bill do what Congress and the president intended? Did it help Americans get back to work and rebuild communities with an eye towards reducing the inequities that were magnified during the COVID-19 pandemic?

March 10th, 2022

By Trey Mendez,
Mayor of Brownsviille, Texas

Bridging the Digital Divide with American Rescue Plan Act Funding

COMMENTARY | One year after ARPA was signed, states, cities and counties are making meaningful progress to expand broadband access.

In this day and age, access to broadband is not a luxury. Trust me—I know.

In 2019, the National Digital Inclusion Alliance named Brownsville, Texas, as one of the “Worst Connected Cities” in the country. That was the same year I was elected mayor.

At the time, two-thirds of households lacked high-speed (cable, DSL or fiber) internet access. I knew that if Brownsville was going to be a thriving community, the issue of broadband must be one of my top priorities.

Then came the Covid-19 pandemic, which placed a huge spotlight on the digital divide. Throughout 2020 and 2021, we saw schools close and many businesses transition to working from home. The sudden transition was harder for some than others. A Rice University study of the Houston area in March 2021 found one in three Black families and one in four Hispanic families reported challenges with internet and/or digital access, compared to just one in 10 white parents.

Across the country, lack of high-speed internet forced some students to park outside libraries in the evenings so they could access free Wi-Fi just to complete school assignments. And the ability to work from home was only available to those who had the means and resources to do so.

For Immediate Release:                                                    

March 9, 2022                                                        

Contact: Jonathon Dworkin, 202-660-1340 x5, jonathon@newdealleaders.org

NewDEAL Publication Highlights American Rescue Plan Successes, One Year Later

Case studies from across the nation show how local leaders are using ARP funds to build a better America.

Washington, DC – President Biden signed the landmark American Rescue Plan (ARP) into law on March 11, 2021. A year later, state and local elected officials are using funds allocated by Congress to heal and rebuild from the COVID-19 pandemic. In The American Rescue Plan – One Year Later: Impact in the States, NewDEAL (Developing Exceptional American Leaders) highlights more than 30 case studies of how ARP funds are being used. The report focuses on five key themes:

• Improving Access to Affordable Housing;

• Investing in Small Businesses and Entrepreneurs;

• Strengthening the Workforce;

• Strengthening Child Care; and

• Expanding Access to Broadband.

After 12 months, the results of the Rescue Plan tell a clear story about its positive impact on the nation. According to Moody’s, ARP is responsible for creating more than four million new jobs, and has put America on a path to recovering all the jobs lost during the pandemic by the middle of 2022.

The report released today goes beyond the macro-implications of the law to focus on its effects on communities across the country as a result of elected leaders’ work with the state and local recovery funds.

“One of the biggest and most underappreciated successes of ARP has been the historic investments in states, counties, and cities to tackle challenging and seemingly intractable issues,” states the introduction to the report. “The Rescue Plan set aside $350 billion for states, local governments, tribal governments, and U.S. Territories, entrusting governors and legislators, mayor and county executives, to tackle immediate challenges from the pandemic, while enabling them to pursue innovative solutions to some of America’s most difficult issues.”

In this report, case studies from cities in red, blue, and purple states show how elected officials are rebuilding from the pandemic. In addition to the themes laid out above, the report spotlights two cities (Richmond and Phoenix) and one state (Colorado) for their overarching approach to using Rescue Plan funds. Richmond has used the city’s recently-passed Equity Agenda to guide spending, while Phoenix has ensured that services were being brought to those who truly needed them most. In Colorado, Governor Polis and state legislators have worked together to tackle issues such as access to behavioral health and affordable housing.

Read the Full Report at: https://newdealleaders.org/arp.

“The issue of equity is a throughline in the report,” said Debbie Cox Bultan, CEO of the NewDEAL. “Elected officials recognized inequality was an issue before the pandemic, and saw how those inequalities were exacerbated over the last two years. The report shows leaders are not content looking backward to rebuild flawed systems of the past, but rather are taking advantage of a unique moment to build a better, more prosperous future for everyone.”

The report makes the case in favor of the approach by Members of Congress who recognized that local leaders would be best equipped to address issues in their cities, counties, and states. The results are clear, from 250 grants to hard-hit small businesses in Lincoln, Nebraska to 95 miles of new fiber in Brownsville, Texas, and support for thousands of child care centers and tens of thousands of child care workers in Michigan.

“Our government works best when local, state, and federal officials work hand-in-hand to tackle big problems,” said Congresswoman Marilyn Strickland (WA-10), Honorary NewDEAL Co-chair. “The COVID-19 pandemic presented unique challenges for Washington state and the entire nation, and the American Rescue Plan shows that we are capable of rising to the moment. As our nation continues recovering from the pandemic, I’m proud to see NewDEAL Leaders demonstrate their ability to solve problems for the people in their communities.”

“Thanks to Democrats’ American Rescue Plan and the resilience of the American people, we have turned the page on the COVID-19 pandemic and are entering a new chapter that is guided by science and not fear,” said New Democrat Coalition Chair Suzan DelBene (WA-01). “The fastest economic recovery in American history would not have been possible without the work of our local and state officials, who worked to maximize federal American Rescue Plan funding to build a better and safer America.”

American Rescue Plan funds have been distributed in 2021 and 2022. States, cities, and counties have until 2024 to allocate the funds, and until 2026 to spend the funds.

About NewDEAL

The NewDEAL is a national network of 200 rising state and local elected leaders who are pro-growth progressives. Our mission is to bring together leaders focused on expanding opportunity and to help them develop and spread innovative ideas to spur economic growth that is broadly-earned and sustainable. We do this by connecting NewDEAL Leaders with each other to exchange ideas, and connecting them with other pro-growth progressive political, policy, and private sector leaders. The network includes our Honorary Chairs, Senator Chris Coons (DE), Congresswoman Marilyn Strickland (WA-10), and Mayor Steve Benjamin (Columbia, SC).

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By: Debbie Cox Bultan, CEO of NewDEAL

Two years into the pandemic, as we enter a new phase of living with COVID, we must acknowledge that the virus brought more than just a historic public health challenge. The past two years have also made crystal clear longstanding and unsustainable inequities that predate and have only intensified during the pandemic — disparities in access to broadband and affordable housing, quality child care, and capital for entrepreneurs. At the same time, our country faces existential threats, from the impacts of climate change to systemic, persistent racism and unprecedented attacks on the very fabric of our democracy.

The good news is that, despite serious challenges, we have an incredible opportunity right now to address these problems and to set America on a path toward a more inclusive, prosperous, sustainable future for all. As President Biden said in his State of the Union address last night, “We are stronger today than we were a year ago” because of an agenda to “invest in America, educate Americans, grow the workforce, and build the economy from the bottom up.”

A big part of that investment has been led by state and local innovators across the country who are making tangible progress with the assistance of billions of dollars in federal funding from the American Rescue Plan Act and Bipartisan Infrastructure Law. That work should give us all hope.

In that context, I’m excited to launch a regular series spotlighting key trends and promising ideas in state and local policy, drawing from the work of the NewDEAL network of 200 exceptional state and local elected officials who are championing innovative, results-oriented solutions across the country.

Over the past year, the NewDEAL has been tracking how state and local leaders are working to build a better America post-COVID, including using ARP funds. Two areas that are seeing significant investment and will play a key role in whether we emerge from the pandemic as a more equitable society are housing and small business.

Access to housing is a fundamental building block of American prosperity. However, as the NewDEAL Forum noted a year ago, lack of access to affordable housing long predates the pandemic, with the problem “especially acute for people of color…Among Black Americans, 55% pay more than 30% of their income toward housing compared to 40% of white Americans.”

Local governments are spending one of every eight dollars they have received from the Rescue Plan on housing initiatives, according to the Brookings Institute.

In Boise, Idaho, Mayor Lauren McLean has announced the launch of a new Housing Investment Program, through which the city will partner with developers to build more multifamily housing in support of the Mayor’s efforts to provide housing options on a “Boise budget.” The initiative aims to build more than 1,500 housing units at 60 percent of area median income and would include 250 new units of supportive housing.

In Michigan, Representative Mari Manoogian’s bill to establish the state’s First-Time Home Buyers Savings Program was signed into law. This new program will allow residents to open special savings accounts to save for and eventually purchase single-family homes. Contributions and withdrawals from the accounts will be tax-exempt.

And in Denver, Mayor Michael Hancock launched a new concentrated effort to support those experiencing homelessness. The city is deploying more resources to support partner organizations that are providing rapid resolution, rapid rehousing, and permanent supportive housing solutions. Through this housing surge, the city aims to provide solutions for 400 households in 100 days.

A second area where NewDEAL Leaders are focusing their efforts is in supporting small businesses and entrepreneurs with a goal of addressing generational poverty through novel policy solutions. Roughly one in three small businesses closed during the pandemic — some of them temporarily, but many permanently. But opportunities for a turnaround exist. Seventy-one percent of small business owners are optimistic about their own performance in 2022, an increase from 63 percent just one year ago.

To ensure recovery among small businesses and entrepreneurs is equitable, Philadelphia Councilmember Derek Green has proposed the establishment of a city-run public bank. If approved, the bank would elevate women and minority-owned businesses, reducing racial disparities in business ownership and making it easier for these companies to secure loans. Councilmember Green’s proposal took finalist honors in last year’s NewDEAL Ideas Challenge.

In Richmond, Virginia, Mayor Levar Stoney is working to build generational wealth with his new “Triple A” program, which will provide aid and relief to small businesses. This new program, named after its three steps “Assess, Address, Activate,” will be administered by the city’s Office of Minority Business Development and is designed to help small businesses recover from the effects of the pandemic using American Rescue Plan Act funds.

And in Manchester, New Hampshire Mayor Joyce Craig has announced the relaunch of the Manchester Small Business Grant and Program Assistance, which uses American Rescue Plan funding to support small and minority-owned businesses up to $10,000 and will be vital as the town rebuilds its local economy. All of these programs will funnel money to communities that need it and can serve as models for other policymakers to emulate.

Despite the challenges facing America as we emerge from the pandemic, state and local leaders are making significant progress, in part by leveraging historic federal investment. Next week, the NewDEAL will release a report highlighting even more success stories made possible by funds from the American Rescue Plan and I look forward to sharing with you more in this space about the good ideas being implemented around the country. In the meantime, if you want to learn more, please visit our website at www.newdealleaders.org.

Debbie Cox Bultan is CEO of the NewDEAL network of 200 rising state and local officials and of the NewDEAL Forum, which identifies and promotes innovative, future-oriented state and local pro-growth progressive policies that can improve the lives of all Americans.