Alabama is making progress in utilizing its $2.12 billion share of American Rescue Plan funds, with state agencies on track to meet the federal deadline of December 31, 2026. The ARPA Oversight Committee received reassurance that the state is “clawback-proof” in spending the funds without increasing administrative costs.
However, concerns were raised about broadband expansion efforts, overseen by the Alabama Department of Economic and Community Affairs (ADECA). While ADECA has approved over 200 projects to connect 140,000 additional homes, businesses, and public facilities with high-speed internet, there are worries that competing federal grants could lead to gaps in the state’s coverage.
Despite these challenges, committee members expressed confidence in the state’s progress. Assistant Finance Director Susan Wilhelm confirmed that only $7.4 million of ARPA funds remained unspent, likely to be directed towards reimbursing rural hospitals for COVID-19 expenses.
Sen. Greg Albritton commended state agencies for their efficient use of funds, noting that the money is being invested in infrastructure projects without adding extra staff or administrative costs. While concerns remain about broadband expansion, lawmakers believe Alabama is on a good path to utilizing most, if not all, of the ARPA funds allocated to the state before the federal deadline.
Overall, the state is making significant strides in spending its ARPA funds responsibly and effectively to provide economic and public health relief to Alabama residents.
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