Federal financial relief is on the way to New Orleans thanks to President Biden’s recently passed American Rescue Plan.
As The Times-Picayune | New Orleans Advocate reports, the $1.9 Trillion ARP will send $375 million dollars to New Orleans, to help stabilize the city’s budget shortfalls due to the pandemic and limping tourism industry. The money equals more than half the city’s annual budget prior to the pandemic.
“When we talked about our deficit, we always talked about these issues being three to five years in nature,” New Orleans Chief Administrative Officer Gilbert Montaño told the newspaper. “We have to be able to look over the long term for these dollars.”
A breakdown of the allocated money by the National League of Cities shows New Orleans stands to receive $302 million off the top, and another $75 million from money allocated for counties across the country.
“Throughout the pandemic, as before, this Administration has demonstrated strong fiscal management. This is evident in our improved credit rating and how we have been able to move forward in this pandemic, making difficult but fiscally responsible decisions to best manage our resources,” said Gilbert Montaño, the City’s Chief Administrative Officer. “This funding from the federal government is not a one-off bailout – we have to continue to think long-term, not just into next year, but the next three to five years.
Montaño says although the city took quick action to recover its finances in the form of budget cuts and furloughs, the city will still have budget shortfalls for some time ahead.
“In the coming days, the City will be laying out more details about recovery plans, which will explain the City’s vision for how we will rebuild our community after the COVID-19 pandemic to be better than before, and more resilient in terms of social, financial and economic development, and public health and safety,” Mayor Cantrell said.
While the ARP Act will provide $1,400 payments for most of the City’s residents, it will also include:
- Expanded unemployment benefits – $300 a week until Sept. 6
- $1,400 stimulus checks per dependent
- Tax credits for households with and without kids
- $3,000 tax break for every child age 6 to 17
- $3,600 tax break for every child under 6 years old
- Expansion of the Earned Income Tax Credit for people without children
There will also be dedicated funds for restaurants and bars, small businesses, housing assistance, and more say city officials.
