New Steering Committee to Oversee American Rescue Plan Funding

Gov. Asa Hutchinson is establishing a new steering committee to oversee funds from the federal American Rescue Plan program.

Hutchinson announced the new American Rescue Plan Steering Committee during his weekly press briefing on Tuesday, May 11. The committee will be composed of 14 individuals, with eight being drawn from Hutchinson’s cabinet officials and six from the Arkansas General Assembly.

Of the six legislators, three will be from the Arkansas Senate and three will be from the Arkansas House of Representatives. The senators include Sens. Ronald Caldwell, Keith Ingram and Bill Sample, while the representatives include Reps. Frances Cavenaugh, Ken Ferguson and Jeff Wardlaw.

“Those have been designated by the respective leaders of their chambers. I asked Senate Pro Tem Hickey and the Speaker for three names for each of those committees. This is an important executive-legislative effort to manage appropriately the $1.9 trillion that the Administration and Congress had approved for the American Rescue Plan,” Hutchinson said.

Arkansas Department of Finance and Administration Larry Walther will be chairing the committee.

Hutchinson created the steering committee via executive order. As part of the executive order, Hutchinson said that he included a mandate to have increased community engagement in the steering committee. This community engagement will involve advisory groups and working groups composed of Arkansas industry figures who will assist in developing the state’s investment efforts.

“While we have our steering committee, we’re going to be utilizing the private sector, nonprofits and our partners to help guide this investment,” he said.

Signed into law on March 6, 2021 by President Joe Biden, the American Rescue Plan Act of 2021 is a $1.9 trillion economic stimulus and rehabilitation package. The act extends Pandemic Unemployment Assistance benefits and Federal Pandemic Unemployment Compensation benefits through Sept. 6, 2021. It also provides $21.55 billion for emergency rental assistance through Sept. 20, 2027, $5 billion for emergency housing vouchers through Sept. 30, 2030, $100 million for tribal housing improvements and $100 million for rural housing through Sept. 30, 2022, as well as $5 billion for homeless assistance.

The American Rescue Plan will funnel $350 billion to states, cities, tribal governments and U.S. territories. According to Hutchinson, Arkansas will receive approximately $5 billion, with funding going to educational institutions, cities and counties, and other entities. The state will receive $1.57 billion.

For Hutchinson, the funding represents a “unique moment in history” for Arkansas. This funding, he said, has significant flexibility that can be used for capital investments.

“I read through the guidance of the Treasury that was issued yesterday, and the purposes are very broad. There’s a lot of flexibility. It’s allowed to be used for capital investments, as well as investments in infrastructure with the health department to guard and be prepared for a future pandemic. This is such a unique time that it’s important that we proceed through this is a planned fashion, that we proceed through it in a coordinated way in coordination with our county and city counterparts that are receiving separate funds and that we coordinate with our different agencies and education that receive separate American Rescue Plan funds. And so, coordination is a critical part of it. We have to be methodical about this and not rushed. In other words, it must be planned,” he said.

While Arkansas has been allotted this sum, it will not receive it in one lump. Instead, the federal government will provide the funding in two installments with Arkansas receiving half in the first installment. “Some states will receive it all at once but because our economy has recovered more quickly, they’re sending us half, and the other half will be sent down the road. I believe that it’s two years down the road that we will receive [it] or a year apart,” Hutchinson said.

The steering committee will be prioritizing capital investments instead of programmatic spending. “It needs be investments that we can make that does not incur long-term spending and indebtness of the state,” Hutchinson said.

Hutchinson told reporters that the American Rescue Plan Steering Committee will be separate from the CARES Act Steering Committee, which will still handle outstanding funds. “Two separate steering groups for two separate pots of money,” he said.