May 26, 2023 | From City of New Orleans
City of New Orleans Appropriates Remaining American Rescue Plan Act Funding
NEW ORLEANS — Yesterday, the City Council approved a series of budget ordinances appropriating $53.6 million of unallocated American Rescue Plan Act (ARPA) funds for an ambitious and impactful array of initiatives deploying ARPA proceeds in our community, with over $47 million appropriated for projects aimed at violence reduction and human services. These funds continue the growth of City investments from all available funding sources to meet the needs of our community, strengthen our local social safety net and build a safer, healthier community for the future.
Key Project Highlights:
- Youth Trauma and Mental Health Support: an investment of $10 million was made to address the pressing issue of youth trauma and mental health in our schools
- Workforce Development Initiatives: with a dedicated allocation of $11 million, these initiatives will empower individuals with skills training, job placement assistance and career advancement opportunities, ultimately enhancing employment prospects for our community
- Affordable Housing Gap Financing: the City will provide $8 million in gap financing support for affordable housing projects
- Subsidized RTA Transit Fares: $5 million allocated to alleviate financial burdens and improve mobility options for residents, connecting them to essential services, employment opportunities and recreational activities
- Financial Stability/Asset Building Program: with an investment of $5 million, this program will provide essential resources, education and support to empower individuals and families to achieve long-term economic security
- Pocket Parks Program: $2.5 million was allocated to establish a pocket parks program to transform blighted and vacant properties into green spaces that will serve the community
- Food Security Program: $1 million was allocated to implement a comprehensive food security program to ensure that all residents have access to an adequate and affordable food supply
- Community Violence Intervention and Prevention: an additional $500,000 was allocated to the Mayor’s Office of Gun Violence Prevention to partner with a community-based organization and develop a street outreach/community violence interruption program
Since the City received the ARPA Tranche 2 payment from the federal government, the Cantrell Administration has engaged stakeholders and experts to understand the needs of the community and decide how and where to provide this one-time funding where it will have the biggest impact. Mayor LaToya Cantrell asked for direct community input through various town halls, and the administration has received additional public input through multiple public presentations before the City Council and meetings with advocates and stakeholders.
Department Directors have submitted project proposals to Administration leadership, presented their proposals before the City Council, met with advocate groups and partners in their fields and honed in on programs targeting the highest priority needs of the community. Coupled with the initial Tranche 2 appropriations adopted into the 2023 Budget last December, this unprecedented City investment directly into our community will have positive impacts for years to come and establish programs that can be expanded as City revenues fully recover from the COVID-19 pandemic.
Additionally, the Council adopted a second set of budget ordinances to appropriate almost $70 million from the City’s Unassigned Fund Balance for one-time investments in City assets and operations that are vitally important for the sustainability and continuity of the City. This investment in ambulances, fire trucks and vehicles mean that our public safety teams can respond to emergencies quickly and safely, and the operational funding will provide our non-public safety agencies the tools they need to enforce code violations, cut down trees, remove trash, maintain City facilities and issue permits.
We want to thank the City Council for being a partner in this process of recovery from the pandemic. The Cantrell Administration and the New Orleans City Council have appropriated ARPA and Unassigned Fund Balance proceeds over the last year to initiate an ambitious set of meaningful initiatives in the community, make needed investments in City assets and operations and set aside a prudent amount in emergency reserves to respond to future emergencies and protect the long-term financial stability of the City.
For further information and updates on the City's ARPA investments and initiatives, please visit the official website at www.nola.gov/ARPA.
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