Maximizing Impact: Innovative Ways for City Leaders to Use Remaining ARPA Funding

By Andreas Scocos • Mayors Innovation Project

1. Expand Affordable Housing Initiatives

Affordable housing remains one of the most pressing issues in cities across the country. ARPA funds are being used to expand housing options, provide down payment assistance, and incentivize the construction of mixed-use, affordable developments. 

  • Community Land Trusts: The city of Fresno, CA is using $1.95 million to create the Central Fresno Neighborhood Trust (CFNT), in conjunction with Fresno Community Development Corporations (CDCs) to develop, own and manage a “scattered site rental portfolio” governed by “community stakeholders, and legally mandated to [be] affordable” as a mixed income neighborhood trust.
  • Rehab existing properties: Under Mayor Slaughter’s leadership, the City of Williamsport, PA dedicated $2.7 million in ARPA funding to the Williamsport Redevelopment Authority and another $2 million to the Land Bank Authority for redevelopment of existing blighted residential, commercial and industrial properties. ($4.7 million)

2. Support Small Businesses and BIPOC Entrepreneurs

Small businesses, especially those owned by BIPOC (Black, Indigenous, and People of Color) entrepreneurs, were disproportionately affected by the pandemic. Cities can use remaining ARPA funds to create revolving loan funds, offer grants for business expansion, or provide technical assistance to help these businesses thrive.

  • Inclusive Ventures Program: Anne Arundel County, MD is investing in its woman, minority, veteran, and disabled business owners through expanding its Inclusive Ventures Program. ($1.097 million)
  • Commercial Space Supports Funds: The city of Boston is using their Supporting Pandemic Affected Community Enterprises (SPACE) Grant Program to help small business and other revitalization efforts aimed at industries with the largest post-covid recovery. ($10 million)

3. Invest in Smart, Green Infrastructure

ARPA funding presents an opportunity to invest in sustainable infrastructure projects that address environmental challenges while creating local jobs. Green infrastructure projects, such as urban forests, stormwater management systems, and renewable energy initiatives, can improve your city’s environmental sustainability and quality of life. Smart city and digital transformation efforts can save money, enhance service delivery, and streamline processes. 

  • Stormwater Mitigation: The city of Baltimore is working to expand its stormwater management system through the Druid Heights Community Development Corporation to expand stormwater management practices to limit inland flooding and run-off to local waterways from contractor contaminated vacant lots. ($300,000)
  • Community Solar Projects: Raleigh NC, is installing solar canopies on all 19 stations of its newly completed BRT line. ($500,000)
  • City Website Design/Usage: The City of Tucson is overhauling its website to expand the accessibility of city services on its website and increase its intuitive user experience. ($300,000)

4. Enhance Digital Equity 

The pandemic highlighted the digital divide, with many lacking reliable internet access for work, school, and healthcare. Cities have used ARPA funds to bridge this gap by investing in broadband infrastructure, particularly in underserved areas, ensuring that all residents have access to high-speed internet.

  • Municipal Broadband: Stockton, CA is working with an independent contractor to create a plan for completing and expanding its fiber network. The project will identify key areas where the city can maximize its “Capacity for delivering services, economic development and connect with other institutions.” ($450,000)
  • Digital Literacy: The city of Los Angeles is investing in a “TechTryout Cart” as a mobile internet literacy cart, providing traditional library computer services and literacy programs to extend beyond fixed location internet library literacy services. ($145,000). LA is also purchasing laptops for public use at libraries where residents have access to wifi and other services like excel for in-house use. ($185,764)

5. Invest in Workforce Development and Job Training

ARPA funds can support workforce development programs that help residents upskill and reskill for the post-pandemic economy, with a focus on sectors like healthcare, technology, and green energy. These programs can boost local economies, reduce unemployment, and build long-term community resilience.

  • Green Career Pathways: The city of Minneapolis is utilizing $100,000 to start an initiative creating new career pathways inside current green sector technologies and industries. ($100,000)
  • Investment in STEM Job Training: The city of Miami operates the STEM Talent for Miami program which helps increase technology workforce readiness. The program targets marginalized Miami-Dade residents and looks to train them to work in city specific jobs within the STEM field. ($200,000)

6. Economic Mobility and Debt Relief

Cities have a unique opportunity to support economic mobility and to tackle debt that hampers their citizens’ health and economic wellbeing.

  • Medical Debt Relief: Cook County, IL, in partnership with RIP Medical Debt, is working to wipe $1 billion in medical debt for a combined 400,000 residents with just $12 million dollars in ARPA funding. To date, the project has erased $280 million for over 200,000 residents. ($12 million)
  • Guaranteed Income: Ann Arbor, MI used ARPA funding to launch its Guaranteed Income to Grow Ann Arbor program. This 2-year pilot provides payments of $528 per month to 100 randomly selected low income entrepreneurs and gig workers who reside in the City. ($1.6 million)
  • Invest in early childhood: Newport News, VA is partnering with Peake Childhood Center and Virginia Peninsula Community College to develop and operate a fully accredited and licensed early childhood center. ($11 million)

As the ARPA obligations deadline approaches, it’s important to prioritize investments that will have long-term impacts on community resilience, sustainability, and economic health. While we encourage city leaders to be strategic and innovative in obligating their remaining ARPA funds, it is important to note that these deadlines are looming. We encourage obligations that have the best chance of going to contract or spending down existing dollars quickly. For more ideas please visit Brookings’ ARPA tracker