General Assembly To Consider American Rescue Plan Allocations During Special Session

Members of the General Assembly will be meeting in Richmond starting Monday, Aug. 2 after Governor Ralph Northam called in June for a special session. The purpose of the special session is limited in scope; members will be tasked with allocating over $4.3 billion granted to the state via the American Rescue Plan and filling judicial vacancies. Signed into law by President Joe Biden this past March, the American Rescue Plan is a $1.9 trillion economic stimulus package designed to support economic recovery in light of the COVID-19 pandemic. The plan allocates $350 billion in funding for state, local, territorial and Tribal governments.


The federal allocations come at a time when Virginia seems to be making great economic strides. The state is currently running a nearly $2 billion revenue surplus, maintaining a low unemployment rate, and was recently once again ranked as the top state in the country to do business. These favorable economic indicators give the General Assembly room to use the federal funds to invest in a number of proposals that will directly impact the lives of Virginians in positive ways.


Of the $4.3 billion in funding Virginia has received, the state has already distributed $304.5 million in funds to certain localities. That’s in addition to the $2.3 billion Virginia localities already received directly from the federal government through the American Rescue Plan. 


One of the proposals the General Assembly will be considering during the upcoming special session seeks to invest $500 million to improve ventilation and air quality in public schools. Under the proposal, the state will allocate $250 million for these upgrades, which is to be matched by localities using funds already distributed. Ventilation upgrades will help to mitigate the threat of airborne illnesses like COVID-19 in schools, which is important considering a law passed earlier this year mandates that all school divisions make in-person learning available during the upcoming school year. 


The General Assembly will also be considering a proposal to allocate $411.5 million in American Rescue Plan funds to reduce water pollution, expand access to clean water, and develop infrastructure to prepare for storm water. A portion of these funds will be used for sewer overflow projects in Richmond, Alexandria, and Lynchburg, three localities that frequently see sewer flooding during and after rain. Clean water is vital not only for health reasons, but also for economic reasons; clean water is necessary for agriculture, and clean water used for outdoor recreation can help boost Virginia’s tourism industry. 


The newly established Virginia Food Access Investment Fund could see its first round of funding through another American Rescue Plan funding proposal. The VFAIF, approved by the General Assembly in 2020, invests in new and expanding food retailers operating in communities that lack reliable access to food. If approved, the proposal would distribute $620,000 to food security projects across the state.


Other priorities the General Assembly will be considering during the special session include expanding access to broadband, providing economic support to essential workers, and addressing economic needs of households and small businesses impacted by the COVID-19 pandemic.


The public can keep up with the special session by tracking meetings and tuning into live-streamed videos of the proceedings, which are available through Virginia’s Legislative Information System. LIS also allows for users to read through the text of legislation and track the progress of individual bills as they progress through the session.

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