Assessing the Implementation of ARPA Coronavirus State and Local Fiscal Recovery Funds: The View from City Officials

Abstract The 2021 American Rescue Plan Act created the Coronavirus State and Local Fiscal Recovery Funds (SLFRF), which provided $350 billion for state and local governments to aid with pandemic recovery efforts. This research examines the local implementation of SLFRF from the point of view of city officials. We assess the effectiveness of grant implementation on two dimensions: funding allocation (the ease or difficulty of selecting and prioritizing projects to be funded) and project management (the ability to complete projects on time and within budget). Our research focuses on the contributions of three general groups of factors on grant implementation performance: federal control and oversight, local capacities, and the role of local political actors. We conducted a national survey of cities that received SLFRF grants and gathered information from city officials responsible for administering the grant on different aspects of SLFRF implementation. Using ordinary least squares and ordered logit regressions to analyze the survey data, the empirical results uncover some consistent patterns. Specifically, local management discretion, perceived clarity of federal rules, a centralized local grant administration structure, and mayoral involvement are positively associated with grant implementation effectiveness.