Public Assets Institute > Policy Areas > Education > American Rescue Plan brings $200 million to Vermont towns and villages

American Rescue Plan brings $200 million to Vermont towns and villages

The American Rescue Plan Act (ARPA), passed in March 2021, earmarked $79.5 million for Vermont’s local governments, and another $121.2 million for county government. Because Vermont counties have limited roles, the feds redirected the dollars to towns and villages. Local governments can use money through the end of 2024 to help pay for government services; direct assistance to households, small businesses, and non-profits for COVID-related costs; premium pay to essential workers; and infrastructure investments.

Both pots of money are allocated based on population size and will be distributed by the state, with the exception of Burlington and South Burlington. These municipalities will receive non-county funding directly from the U.S. Treasury, based on a formula for metropolitan areas.

Funds will be distributed in two equal payments, at least 12 months apart. Towns and villages have already received the first payments from both grants. See the map for the total grants towns will receive over the next two years. Information on village allocations is in the table below the map.