Salem To Get Estimated $36 Million From American Rescue Plan

Salem MA

12 April, 2021

11:32 AM

Description

SALEM, MA — Salem can expect up to an estimated $36 million in payments from the recently passed American Rescue Plan over the next two years, according to Mayor Kim Driscoll and the Massachusetts Municipal Association. Driscoll's office said the MMA estimates the city will get more than $27 million in municipal assistance, plus an additional estimated $8.4 million in funding ticketed for the Essex County government, which was allocated substantial relief money even though it was abolished in 1999. The funds equal about one-fifth of the city's annual budget. The first payments are expected within 90 days with the balance paid out over the rest of 2021 and 2022. The money must be used by the end of 2024. The funds are meant to provide assistance to households, small businesses, nonprofits and industries — such as tourism, travel and hospitality — hardest hit during the pandemic. They can also be used to pay essential workers during the public health crisis and reimburse municipalities for revenue lost amid the pandemic through diminished sales, hotel and meals taxes. Money may also be used in infrastructure investments. Specific allocations will be made to enhance coronavirus testing and vaccination efforts, as well as other public health efforts, and educational and early childcare funding. Driscoll said Salem Public Schools does not yet know precisely how much of the Elementary and Secondary School Education Relief Fund will be allocated to SPS, but based on preliminary estimates it is expected that the allocation will be "several million dollars." "Because this is a one-time source of funds, when it comes to the direct aid we will be smart and forward-thinking with respect to how we expend these dollars," Driscoll said. "Clearly, there are immediate needs to be addressed, as well as a desire to use these funds to leverage future, equitable prosperity for our city. "We will also evaluate opportunities to work with other communities in our region and with state agencies in a complementary manner, to further maximize the impact of state these resources." Driscoll's office said the city will work with nonprofits, residents and businesses on how to best access and utilize direct payment options that do not directly go through the city, and that the city will be transparent on how the money is distributed. "Salem residents rightly expect that we will be transparent and thoughtful with respect to this federal funding," Driscoll said. "There are no shortage of capital needs and this aid will provide an opportunity to plan and leverage resources for the benefit of everyone in our community." Did you find this article useful? Invite a friend to subscribe to Patch. (Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at [email protected]. Twitter: @Scott_Souza.)