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Advance McHenry County

The American Rescue Plan Act of 2021

McHenry County’s American Rescue Plan Act Allocation is $59,781,491; the Act was signed into law on March 11, 2021. The funds must be obligated by Dec. 31, 2024, and fully spent by December 31, 2026. The first half of the County’s allotment was received on June 7, 2021. The second half is expected not earlier than one year from May 11, 2021.

The intent of the American Rescue Plan Act of 2021 legislation is designed to address the unprecedented coronavirus health and economic recovery. The legislation provides broad statements regarding the use of these funds:

  • Respond to public health emergency
  • Respond to workers performing essential work
  • Recover revenue losses
  • Investments in sewer, water, or broadband
  • Transfer funds to not-for-profit or special purpose units of state or local government

Under the act, the following are broad restrictions in using these funds:

  • Cannot be spent on pension funds
  • Cannot be spent to pay down debt
  • Cannot be deposited into fund balance
  • Cannot be used to offset property tax levies
  • Cannot be used for roads, bridges, and other infrastructure projects
  • Cannot be used to match federal grant (i.e., 80/20 grant)
  • Cannot be used to pay for legal settlements

 

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