The American Rescue Plan Act of 2021, passed by the House on Wednesday and signed into law Thursday by President Joe Biden, will bring a flood of much-needed funds into the state of Ohio – and Cleveland, in particular. The $1.9 trillion COVID relief bill allocates more than $11.2 billion in state and local aid to Ohio. The state will receive half of this $11.2 billion, while $2.2 billion each will go to major cities and Ohio’s 88 counties.
Of the $11.2 billion in funding allocated to Ohio, Cleveland is slated to receive $541,410,000—more than half a billion dollars—which is more than any other city in the state. This amount, which is the eighth largest allocation among all major U.S. cities, averages to roughly $1,400 per Cleveland resident. To put this allocation into context, Columbus will receive only $211 per resident, or $185,960,000. It is worth noting that unemployment numbers factored into these allocations; Cleveland’s unemployment rate as of December 2020 was the highest of any major city in the state at 6.2%, down from 23.1% in April.
In addition to Cleveland’s allocation, Cuyahoga County is set to receive $239,530,000, while neighboring Summit County will receive $104,930,000. The implications of this stimulus—which can be used for COVID-related expenses such as vaccines and public health, small business relief and support for low-income residents and schools—are unprecedented.
If you have questions about how the American Rescue Plan may impact your business, Cleveland or your community, please do not hesitate to contact any of our KJK attorneys.
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