NCLM Southern City Volume 71, Issue 4, 2021-22

NCLM.ORG 31 The American Rescue Plan and Local Infrastructure This recommendation is made understanding the constraints of the ARP and the realities of North Carolina’s existing infrastructure challenges. Making investments in infrastructure represents one of the most likely paths to a lasting funding legacy. Additionally, the League encourages municipalities to seek partnerships and regional collaboration when planning ARP spending. Simply put, funding goes further when partnered. The American Rescue Plan creates an opportunity for local governments to work collaboratively to make these much-needed transformational infrastructure investments. In fact, the federal legislation’s language and guidance explicitly promote regional investments. Many of these arrangements are already taking shape around North Carolina, as evidenced by the case studies shared within this report. Even for communities that do not operate a utility themselves, other allowable uses of ARP funds include transferring funds to the local utility operator for a project in their area and completing stormwater projects. The American Rescue Plan and its direct funding to municipalities creates an opportunity for municipalities to work individually and collectively to make transformational infrastructure investments, with the federal legislation’s language and guidance explicitly promoting these investments. The American Rescue Plan creates an opportunity for local governments to work collaboratively to make these much-needed transformational infrastructure investments. State Revolving Fund Requests vs. Approvals Drinking Water and Wastewater Funding Sources in North Carolina Approved Requested, Not Approved $74 Million $257 Million $75 Million $204 Million Source: N.C. Division of Water Infrastructure, July 2021 Source: N.C. Division of Water Infrastructure, Data from FY 2017 and FY 2018 Drinking Water Wastewater State Drinking Water Reserve Grants USDA (Rural Development) Community Development Block Grant (Infrastructure) Drinking Water Connect NB Bond Grants Funded by Utility Providers, or Deferred Through Loan 1% 1% 2% 3% 93% 1% 1% 2% 4% 92%

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