Category: Center of Innovation

By Blair Lozier

In 2019 — the latest year for which national statistics are available — state and local governments collected $52 billion in motor fuel taxes. State laws and regulations often mandate that portions of this revenue will be allocated to support specific programs. From 2015-2019, most of the motor fuel tax revenue was used for state administered highways, local roads and streets and mass transit. The most popular approach, taken by 20 states, is to direct funds to transit and active transportation (pedestrian and bicycle projects). The second most common approach is to allocate funds to law enforcement and safety services. Less frequently, funds are directed to education, tourism and environmental programs.

Fuel taxes are assessed in a variety of ways. As of 2019, 22 states structured their tax systems around a variable-rate method — the tax rate fluctuates based on wholesale gas prices, the price at the pump, the inflation rate or other factors. Ten states — California, Colorado, Florida, Illinois, Maryland, North Carolina, Rhode Island, Utah and Virginia — and Washington, D.C. have motor fuel tax systems that adjust for inflation or the Consumer Price Index (CPI). Ten other states — Connecticut, Kentucky, Maryland, Nebraska, New Jersey, New York, Pennsylvania, Utah, Vermont and West Virginia — use the price of gasoline to determine the tax rate.

Last week, President Biden urged Congress to suspend the federal gas tax in response to sustained high prices. Biden also called for states to consider suspending their taxes.

CSG has conducted a scan of actions states are implementing or considering in order to provide relief from high gas prices, including compensation programs and gas tax suspensions — often referred to as motor fuel tax holidays.

Option 1: Direct Compensation 

Delaware has enacted a compensation program to provide funds directly to consumers.

State Motor Fuel Tax Compensation Programs

State	Program Summary
Delaware	The enacted 2022 Delaware Relief Rebate Program is a one-time payment of $300 per Delaware resident taxpayer.

Option 2: Motor Fuel Tax Holiday

Many states have proposed or enacted a motor fuel tax holiday. A holiday is a period where taxes are suspended.

Enacted State Motor Fuel Tax Holidays

State	Description of Fuel Tax Holiday
Colorado	Lawmakers enacted a delay of the increase in usage fees and temporarily reduced prices.
Connecticut	The suspension of motor fuel taxes is in place from April 1 to June 30.
Florida	The motor fuel tax will be suspended from Oct. 1 to Oct. 31.
Georgia	The governor originally suspended the motor fuel tax from March 18 to May 31. The suspension has been extended until July 14.
Maryland	The state legislature passed a 30-day period beginning March 18, 2022. Legislators are working on a proposal for another 90-day suspension.
New York	The state fuel tax has been reduced and counties will cap the amount of tax that can be collected per transaction.

Proposed State Motor Fuel Tax Relief

State	Relief Type	Description of Proposed Relief
Alaska	Motor Fuel Tax Holiday	Suspending the motor fuel tax until June 2023
California	Compensation Program	Implementing a $400 rebate per registered car for up to two cars for every household Implementing free public transit for three months
Idaho	Motor Fuel Tax Holiday	Implementing a six-month tax holiday
Illinois	Motor Fuel Tax Reduction	Reducing the motor fuel tax beginning July 1
Michigan	Motor Fuel Tax Holiday	Suspending the motor fuel tax
Minnesota	Motor Fuel Tax Holiday	Reducing the motor fuel tax cut from Memorial Day to Labor Day
Mississippi	Motor Fuel Tax Holiday	Suspending the motor fuel tax for six months
Missouri	Motor Fuel Tax Holiday	Suspending the motor fuel tax for six months
New Jersey	Compensation Program	Implementing a $250 tax rebate for individuals filing single and $500 tax rebate for married-filing couples Implementing free public transit for three months
Rhode Island	Motor Fuel Tax Holiday	Suspending the motor fuel tax until the end of calendar year 2022
Pennsylvania	Motor Fuel Tax Reduction	Reducing the motor fuel tax by 33%
Virginia	Motor Fuel Tax Holiday/Reduction	Implementing a three-step relief program: Step 1: Eliminate the statewide motor fuel tax from May 1 to July 31 Step 2: Reduce the statewide motor fuel tax by 50% from August 1 to August 31 Step 3: Reduce the statewide motor fuel tax by 25% from Sept. 1 to Sept. 30

More Information:

Institute on Taxation and Economic Policy

Reason Foundation

The Urban Institute

This week, learn more about recent developments on how states are responding to inflation, the transparency of pandemic funds and state budgets.

To view the CSG fiscal policy website, visit web.csg.org/recovery.

CSG Resources: 

CSG has an update on how the federal and state governments are responding to inflation and its impact on people across the U.S.: States Respond to Inflationary Pressures

News State Policymakers Can Use:

The National Association of State Budget Directors maintains an up-to-date look at state budgets for the next fiscal year, which can be accessed here: Fiscal Year 23 Proposed and Enacted Budgets. Most states were scheduled to pass a budget this spring, however, the uncertainty of the persisting COVID-19 pandemic altered the usual schedule. Several states passed supplemental budgets or budgeted for only one year.The Federal Reserve Bank of Chicago published a report on states that experienced population gains and losses during the pandemic.Bloomberg reported last week on the substantial increases in the cost of 30-year mortgages and what it means for home buyers and the housing market.

Federal Policy Updates for State Leaders:

American Rescue Plan Act

The Department of the Treasury released the updated Project and Expenditure Report User Guide and the Recovery Plan Reporting User Guide to assist states in preparing reports due on July 31.The Pandemic Resource Accountability Committee released an interactive State and Local Fiscal Recovery Fund Dashboard. Twenty-one inspectors general from various federal agencies provide this information to support transparency in government spending and use data-driven technology to detect fraud, waste, abuse and mismanagement of pandemic relief funds. The dashboard provides an interactive and searchable report of the $350 billion fund, with information from expenditure reports submitted to the Treasury from March through December 2021. Information includes how the funds have been used to improve public health, offset negative economic impacts, strengthen government services, support disproportionately impacted communities and provide premium pay for certain professions.Registration is open to attend the White House Summit on the American Rescue Plan and Workforce with Vice President Harris on July 13 at 11 a.m. ET. The summit will feature state and local leaders discussing investments from the act, featuring infrastructure and apprenticeships, the public health workforce and expanding access to training for underserved populations.

Congress

The Appropriation Committee of the House of Representatives completed work on spending bills for fiscal year 2023. The 12 bills now go to the full House for consideration, although the timing remains uncertain. The Senate Appropriations Committee plans to review bills this month. However, before significant progress on appropriations bills can be made, congressional appropriators will need a bipartisan agreement on discretionary spending targets for fiscal year 2023.

Transportation

The U.S. Department of Transportation announced a proposed rule that would “require state departments of transportation and metropolitan planning organizations to establish declining carbon dioxide targets and to establish a method for the measurement and reporting of greenhouse gas emissions associated with transportation under Title 23 of the United States Code. The proposed rule would not mandate the level of the targets.”The Federal Aviation Administration announced the awarding of nearly $1 billion in funds from the Infrastructure Investment and Jobs Act to 85 airports across the U.S.Applications for the Reconnecting Communities and Thriving Communities competitive grant pilot programs are due on Oct. 13, 2022. A webinar for stakeholders to learn about the application opportunity will be held on July 14 at noon ET.

Veterans

The Veterans Administration Office of Inspector General released a report showing a substantial staffing shortage among providers across the U.S. For example, “Facilities reported 2,622 severe occupational staffing shortages across 285 occupations in fiscal year 2022.”

This week’s newsletter includes recent developments that every state leader needs to know about motor fuel taxes, talent pipeline development and grants for bridge projects.

To view the CSG fiscal policy website, visit: web.csg.org/recovery.

CSG Resources: 

CSG conducted a scan of actions states are implementing or considering in order to provide relief from high gas prices. Learn more about the options for states in our article, “State Approaches to Motor Fuel Taxes.”

News, Updates and Resources

INFRASTRUCTURE INVESTMENT AND JOBS ACT

General

Administration announces initiative to fill high-quality jobs

The Talent Pipeline Challenge is a call to action for employers, education and training providers, state, local, Tribal and territorial governments and philanthropic organizations to make tangible commitments to support equitable workforce development in three critical infrastructure sectors. These sectors are broadband, construction and “electrification” (e.g., electric vehicle charging infrastructure and battery manufacturing). The Talent Pipeline Challenge also encourages recipients to use current funding from the American Rescue Plan Act, Infrastructure Investment and Jobs Act and State Workforce Innovation and Opportunity Act for workforce development efforts in these sectors.

Environment

Environmental Protection Agency announces $375 million investment in recycling

The agency issued a Request for Information for three new recycling, reuse and waste prevention programs:

Solid Waste Infrastructure for Recycling Grant Program: $55 million per year for fiscal years 2022-2026, plus $2.5 million in fiscal year 2022 for implementation. Comments are due by July 25.Recycling Education and Outreach Grant Program: $15 million per year for fiscal years 2022-2026 to improve the effectiveness of community recycling programs through public education and outreach. Comments are due by July 25.Battery Collection Best Practices and Voluntary Battery Labeling Guidelines: $10 million to develop battery recycling best practices and $15 million for voluntary battery labeling guidelines, available through Sept. 30, 2026. Comments are due by July 11.

Guidance and funding for Gulf Hypoxia Action Plan

The Environmental Protection Agency is providing $60 million for nutrient reduction activities for 12 states in the Gulf of Mexico region and the Mississippi River/Atchafalaya River Basin to improve water quality. Additional information can be found here.

Environmental Protection Agency invites states and territories to apply for $1 billion in funding to address contaminants in drinking water

The Emerging Contaminants in Small or Disadvantaged Communities Grant will be awarded non-competitively to states, territories and tribes focused on assisting small or disadvantaged communities to confront pollution. The agency will contact states directly to inform them of the program and application process. Respondents must submit a letter of intent to [email protected] by Aug. 15.

Interior

$9 million dedicated to sagebrush ecosystem projects in 2022

The Fish and Wildlife Service will invest $50 million to conserve the sagebrush ecosystem over five fiscal years, with $9 million dedicated in 2022. Funding for 40 projects in Idaho and seven other Western[JS1]  states will combat invasive grasses and wildfire, reduce encroaching conifers, safeguard water resources and promote sustainability.

Federal-state critical minerals mapping partnership

The infrastructure act provides $64 million to support research in critical minerals, energy and supply chain issues. The U.S. Geological Survey will partner with the Association of American State Geologists and state geological surveys in 30 states for geoscience data collection, mapping, data preservation and scientific interpretation of areas with potential for critical minerals for the Earth Mapping Resources Initiative.

Department of the Interior allocates $103 million for wildfire mitigation and resilience

The department announced an interagency program to support wildland firefighter health and well-being and reduce wildfire risk. The funding will support fuels management ($80.9 million), burned area rehabilitation ($19.4 million) and climate-related research ($3.1 million)

Bureau of Reclamation announces $25.5 million for water efficiency projects in eight Western states

The WaterSMART Water and Energy Efficiency Grants will fund 14 water efficiency and drought resilience projects in California, Colorado, Idaho, Oklahoma, Texas, Utah, Washington and Wyoming.

Transportation

Federal Highway Administration proposes regulations for the National Electric Vehicle Infrastructure program

The proposed standards and regulations would apply to the installation, operation and maintenance of electric vehicles. Program information can be found here.

Federal Highway Administration invites applications for Bridge Investment Program

The Bridge Investment Program is open for three competitive funding opportunities. In fiscal year 2022, $2.36 billion is available for bridge projects, including $20 million for planning. A webinar, questions and answers document and fact sheet are available. Each project application has separate requirements and due dates:

Planning projects: July 25Bridge projects over $100 million: Aug. 9Bridge projects less than $100 million: Sept. 8

Federal Railroad Administration requests information regarding blocked crossing portal

The infrastructure act requires the Federal Railroad Administration to maintain a portal to receive information on blocked highway-rail grade crossings. Comment on the Request for Information to improve the effectiveness of the portal are due by Aug. 16.

Department of Transportation announces $8.4 million to connect people to critical services

The Innovative Coordinated Access & Mobility program awarded funds for projects in 16 states to improve public transportation for underserved groups, with a focus on health and wellness.

Federal Highway Administration revises Fiscal Year 2022 supplementary tables for federal aid for highways

The Revised Supplemental Tables for 10 transportation programs cancel the previous notice dated Feb. 23, 2022 and provide updates on fiscal year 2022 allocations showing funding breakdowns, set-asides and limiting amounts by program.

Federal Highway Administration publishes updated questions and answers document to provide clarity on local hiring preferences for construction jobs

Federal Railroad Administration publishes infrastructure act amendments to rail programs

The document details amendments to Subtitle V of Title 49 U.S.C.

Federal Railroad Administration publishes fact sheets on grant programs

The Interstate Rail Compacts Grant Program provides financial assistance for implementing interstate rail compacts to support multi-state and regional intercity passenger rail services. The Railroad Crossing Elimination Grant Program funds highway-rail or pathway-rail grade crossing projects to improve the safety and mobility of people and goods.

Independent Agencies

Government Accountability Office recommends strategy for Federal Communications Commission

The report released in May recommends a National Broadband Strategy. The strategy is designed to give universal access in the U.S.

Federal Communications Commission to establish transparency for broadband program

The infrastructure act mandates prices and subscription rates for all participants in the broadband program. The commission is establishing rules for households enrolled in the Affordable Connectivity Program. Comments about this proposal are due 30 days after being published by the Federal Register.

Federal Communications Commission requests comment on proposal to provide broadband service to rural areas

The proposal seeks to achieve widespread deployment of 100/20 megabit per second broadband service throughout rural areas served by carriers receiving Alternative Connect America Model support. Comments are due on or before July 18 and reply comments are due on or before Aug. 1.

CORONAVIRUS

Legislative Update

The Keep Kids Fed Act reaches bipartisan agreement to extend Food and Nutrition Service Waiver authority through September[JS2] 

House Resolution 8150 is designed to extend flexibility for the Food and Nutrition Service provided by the Families First Coronavirus Response Act. The resolution requires a state to submit a plan for normal operating procedures when the waiver ends. More information can be found here.

Agricultural

Pilot program established to improve the health and safety of H-2A Visa workers

The U.S. Department of Agriculture intends to dedicate $65 million to provide support to workers and implement robust healthy and safe environments for all employees.

Women, Infants, and Children recipients may receive maximum monthly allowance in certain states

Recipients of Food Packages I and II may be eligible for maximum monthly allowances from the Food and Nutrition Service.

Food and Nutrition Service updates list for Women, Infants, and Children formula discretion waiver

The service updated the flexibility for recipients to apply for the imported formula enforcement discretion waiver.

Education

Department of Education publishes Elementary and Secondary School Emergency Relief Fund maintenance of equity materials

These materials include a slide presentation, transcript and recording regarding local educational agency-level reporting requirements.

Department of Education publishes fact sheet on sustaining investments in teachers beyond American Rescue Plan Act funding

The fact sheet recommends providing teachers with a livable wage, investing in a talented teacher pipeline, supporting teachers in earning certifications, helping teachers afford getting into the profession, providing teachers with the resources they need to succeed and creating opportunities for advancement.

Department of Education provides updates on programs

Elementary and Secondary School Emergency Relief FundsState and Local Educational Agency School District PlansMaintenance of Effort Waiver Request Data

Health

COVID-19 Public Health Emergency assumed to end in July 2023

The Congressional Budget Office baseline projections expect the health emergency to be lifted in July of 2023. The Secretary of the Department of Health and Human Services controls the actions that could potentially lift the emergency earlier or cause a delay. The Congressional Budget Office relies on the department for these projections.

Housing

The Department of Housing and Urban Development provides application and eligibility requirements for the Coronavirus Aid, Relief, and Economic Security Act Mainstream Voucher

New funding opportunities for mainstream vouchers are available to public housing agencies. These agencies can apply for vouchers for administrative fees.

Human Services

Low-Income Household Water Assistance Program updates dashboard

The Administration for Children and Families updated the program dashboard to reflect Tribal and territory data.

Outline made for Emergency and Disaster Flexibilities for low-income household water assistance programs

The Administration for Children and Families has outlined the funds for emergency and disaster situations for low-income households.

Labor

Unemployment Insurance programs issue $18 million in American Rescue Plan Act funds

Maine, New Mexico, Oklahoma, Oregon, Pennsylvania, Washington and Wisconsin received $18 million from the Department of Labor. The grant contributes to outreach, resources and training to assist in Unemployment Insurance Navigator Program grants.

Department of Labor awards $11.4 million to help make sure that workers have equal access to state unemployment insurance systems

This funding will go to Maryland, Nebraska and South Dakota. The grants will allow states to fund projects that are designed to ensure race, age, ethnicity and other systemic barriers do not prevent those in need from accessing unemployment benefits.

Treasury

The U.S. Department of the Treasury updates State and Local Fiscal Recovery Funds guidance

Updates to the compliance and reporting guidance include:

Compliance and reporting guidance that includes the final rule — these updates apply to the next Project and Expenditure Report and Recovery Plan that certain recipients must submit by July 31Recovery Plan template for Tier 1 recipients

The Treasury publishes State Small Business Credit Initiative application

This document covers user instructions, application documents, definitions and technical assistance recipient information.

The Treasury publishes periodic report on Municipal Liquidity Facility, including a transaction specific spreadsheet

The Treasury publishes webinar on Homeowner Assistance Fund quarterly report

The fund was created to prevent mortgage delinquencies and defaults, forecloses, loss of utilities or home energy services and displacement. Those who receive awards must submit quarterly reports.

Treasury publishes Best Practices Guide for Capital Projects Fund

The guide also provides an overview of the grant and program plan. This document does not pertain to Tribal governments.

Independent Agencies

New Emergency Connectivity funding announced for schools and libraries

The Federal Communications Commission will issue awards for a third round of school and library broadband funding. The funding is designed to support access to broadband for students all over the U.S. The Emergency Connectivity Fund is intended to close the homework gap for students.

National Endowment for the Arts seeks comment on proposed information collection

The National Endowment for the Arts requests comments regarding its plan to survey state arts agencies on the impact of American Rescue Plan Act funding on grantees. Comments are due by Aug. 16.

Putting American Rescue Plan Dollars to Work: Utah

Financial transparency and interbranch collaboration are important to Utah as the state focuses on equitable distribution of federal funds

By Christina Gordley

The American Rescue Plan Act of 2021 provided $195 billion directly to states through the Coronavirus State and Local Fiscal Recovery Fund. States are to use this assistance to:

Respond to the negative economic impacts of the public health emergency.Provide premium pay for specific professions.Replace lost revenue.Invest in water, sewer and broadband infrastructure.Provide assistance to disproportionately impacted households and communities.

States have focused on how to best use the funds and sustain long-term economic recovery since the relief was enacted in March 2021. Recently, the Senate Finance Committee requested the Government Accountability Office begin a review and assessment for oversight and accountability of how states have used the State and Local Fiscal Recovery funds to ensure proper use and transparency. Just as the impact of the pandemic has varied by state and region, the use of funds and the transparency surrounding spending has differed across the country.

Utah is an example of a state using several methods to provide financial transparency and interbranch collaboration for the strategic and equitable distribution of these federal funds. The Executive Appropriations Committee initially divided $1.65 billion of the state fiscal recovery and capital funds into broad categories.

Utah Sen. Kirk Cullimore described how “the buckets were established based on the criteria from the federal guidelines and regulations for items like public health response as it should, sectors of the economy that were drastically impacted more than others, infrastructure, things like water, infrastructure, networking and broadband, education remediation, access to justice and then housing and homelessness. Each of those buckets were the big, big things we were going to try to address. Within those buckets, we created seven principles that had to be met in order to spend these federal funds.”

Original Category AllocationAmount
(in Millions USD)Revenue Replacement, Unemployment and Infrastructure$630Water Infrastructure$280Public Health Response and Remediation$205Networking and Broadband$175Emergency Preparedness$110Education Remediation$80Housing and Homeless$70Impacted Economies$65Access to Justice$35Total$1,650Source: Utah Office of Legislative Fiscal Analyst May 17, 2021

Transparency and oversight

Cullimore described the use of seven guiding principles for allocating the rescue plan funds to ensure compliance with the federal guidelines and to achieve the statewide goals. The guiding principles established for the use of the state and local fiscal recovery funds were:

Fall within the broad policy category.Do not finance a function performed by another level of government or private sector.Avoid a structural deficit or expectation for funding on an ongoing project with one-time funds.Inspire innovation.Provide improved government provision of serviceAvoid inflationary pressures by creating unmet demandFollow the established budgetary review prioritization and recommendation process.  

Each policy category was assigned to one of the appropriation subcommittees to review each project request for adherence to the guiding principles seek public opinion, and sometimes they were able to direct the project to be funded through other streams of funding in the American Rescue Plan.  

Utah’s allocation of these state and local fiscal recovery funds is available on various websites hosted by different state agencies. The legislature provides information in the Flexible Federal ARPA Dollars report. The state auditor provides an interactive dashboard data tool to view the distribution decisions of local governments and non-entitlement units. The Office of Planning and Budget hosts the Utah Coronavirus Stimulus Summary. Budgeted and expended amounts for each spending category and project are provided. The interactive display by Utah is a unique approach, allowing the user to select four streams of revenue from the Coronavirus Relief Fund, the Federal Emergency Management Agency, the American Rescue Plan Act and additional state funding budgeted for the same program. For example, grants to impacted businesses include $15 million from the rescue plan act, $64.3 million from Coronavirus Relief Fund and $213,0000 from state funds.

Cross branch collaboration and innovation

Cullimore explained, “the Executive Appropriation Committee is made-up of members of leadership, both in the majority and minority of both the Senate and the House. I understand that is a little bit unique to Utah, but it’s been very effective, and obviously, it helps.” For the infusion of rescue plan funds, Utah was not faced with filling holes in the budget and Cullimore felt that Utah was a unique place with established fiscal resiliency after years of building up the reserve funds and budget contingencies funds to prepare for an economic downturn like COVID-19 has the potential of presenting. To allocate the unexpected federal funds, he spoke highly of the usual collaborative budget process that is generally accepted practice in Utah and incorporated a lot of advice from the executive offices that were directed with spending the funds.

In a May 2021 special session, the Utah legislature appropriated $50 million of federal relief for the COVID-19 Local Assistance Matching Grant Program, a statewide competitive program created to leverage state and local funds for projects that will provide the most significant impact on rural and urban communities. The five-member application review committee included a cross-section of state and local leaders with one member each from the Utah Senate, House of Representatives, Governor’s Office of Planning and Budget, the Utah League of Cities and Towns, and the Utah Association of Counties. The collaboration among branches and layers of government provided inclusive and strategic planning to avoid duplication of funding. The scoring guidelines focused on the project’s potential impact on individuals and communities disproportionately affected by the pandemic, long-term benefits, innovation and measurable results.

As a member of the application review committee, Cullimore described how the matching grant program was aimed to incentivize local governments that had their own American Rescue Plan funding to use it to achieve regional and statewide goals for a large impact instead of focusing on individual local goals. He lauds how the Local Assistance Matching Grant Program was wildly successful and used $50 million to match local funding awarded to 36 projects for a total of $300.7 million impact throughout Utah. The largest portion went to water infrastructure projects that address a critical yet expensive need that local communities could not finance independently. In the Weber River Watershed Restoration Project in Summit County, a $1 million investment from the grant program ensured the $84 million project to address the rural water and wastewater needs. Using $1.5 million in Tooele County, it secured a large return on investment for a $19.4 million project for rural housing.

Equity and inclusion

The Multicultural Advisory Committee of Utah’s COVID-19 Response was convened to provide an inclusive lens for public policy development. The committee was composed of racially and ethnically diverse leaders from state agencies, non-profit and community-based organizations, faith-based entities, health care and education advocates and the private sector. Members engaged in strategy workgroups to identify gaps in the delivery of services during the COVID-19 pandemic. Lessons Learned about communications, digital equity, economic sustainability, food security, equitable access to health care, language access and housing services have provided strategies to be applied in all facets of government. Utah used the input to inform the allocation of several programs and initiatives to help achieve a more equitable recovery. Using the local matching grant program as a successful model, Utah invested $35 million to support a Redeveloping Matching Grant Program to incentivize local redevelopment and rezoning of commercial, retail or vacant industrial land for higher density affordable housing to serve disproportionately impacted communities.

Like many states, Utah is working to ensure an equitable recovery from the impacts of COVID-19 and has utilized funds from the American Rescue Plan to provide opportunities for investment in education, social services, housing, water infrastructure and investments.

This story is the first in a series that will highlight the use of American Rescue Plan funds by state governments.

How is your state using American Rescue Plan funds to make an impact? You can help The Council of State Governments tell your story. Email [email protected] to let us know how your state is successfully using ARPA funding.

By Blair Lozier

On July 13, the American Rescue Plan Workforce Summit took place on behalf of Vice President Kamala Harris, the White House American Rescue Plan Implementation Team and the White House Office on Intergovernmental Affairs. The summit addressed key areas of infrastructure that were funded through the American Rescue Plan Act including public health, infrastructure and expanding the workforce. Here are some of the highlighted examples of state and local governments putting American Rescue Plan dollars to work from  the summit:

Perspectives from the States

The American Rescue Plan allocated $350 billion for state, local, territorial and tribal governments. Within the $350 billion, $195 billion was allocated directly to state governments. With the historic amount of funds given to states, the summit highlighted two states that are making a difference by using the funding for transformational change.

North Carolina Gov. Roy Cooper was able to maximize the delivery of health care by utilizing the increased the Federal Medical Assistance Percentage and implementing the Medicaid expansion provisions available from the Biden administration.Pennsylvania Gov. Tom Wolfe discussed the efforts to transform the post-secondary education system within his state.

Infrastructure Jobs focus on Pre-Apprenticeships

The Bipartisan Infrastructure Law distributes $550 billion in a federal program mostly dedicated to states and localities. States and cities presented innovative ways that they have been distributing the American Rescue Plan dollars to create jobs and skilled workers for building infrastructure through pre-apprenticeships.

North America’s Building Trade Union highlighted a pre-apprentice model developed for Building Trades Academy in the Baltimore–Washington, D.C., area. The apprentice program provides guided access into the building trade, they partner with local counsel, state and community-based organizations to end barriers and attract individuals to the workforce.Franklin County, Ohio, developed the Building Futures Program. This 12-week program is to get individuals ready for a career in construction.Los Angeles County, California, created the High Roads Training partnerships to Build Back Equity. This partnership invests in career opportunities, launches a worker equity fund, supplies intensive case management, and removes barriers to success in underserved populations.In Kentucky, Louisville Mayor Greg Fischer presented Kentuckiana Works. This program is designed to help individuals with training for skilled workers. Washington, D.C., Mayor Muriel Bowser is funding an Infrastructure Academy. The Infrastructure Academy is for high-impact job areas with good compensation to eliminate the housing crisis within the D.C. area.

Care and Public Health Workforce

The America Rescue Plan also had a focus on funds for care infrastructure, which includes child care, public health, health care and elderly care. Service Employees International Union Secretary April Verrett mentioned the importance of elderly care, “All 50 states applied for home care dollars.” The Caregiver Initiative is all about investing in care and enabling caregivers the pay they deserve.

Ramsey County, Minnesota, distributed every penny of its American Rescue Plan funds for transformation and foundation work in The Early Childhood Academy and Career Pathways program. The Early Childhood Academy aims are eliminating barriers in child care. Career Pathways program supply training for health care professions.The Erie County, New York, Health Care Careers Grant provides training for health care occupations that are in high demand.FAST Programs were developed in Manchester, New Hampshire, to encourage community building. The intended purpose is to reduce unintended emergency calls, supply the proper level of care in situations and empower the community to work together by becoming community health workers.Community RISE Programs are developed to promote health care education to underserved populations. The program is funded through the U.S. Department of Health and Human Services throughout the U.S. and territories.

Expanding Access to the Workforce for Underserved Populations

States are using the American Rescue Plan to end barriers to gaining employment. Here are some examples:

In Milwaukee, Wisconsin, WRTP Big Step is an apprenticeship to supply sustainable jobs by removing lead pipes. Employ Milwaukee aids individuals with employment, the goal is to get people out of the low-income/poverty cycle. Harris County, Texas, developed Employ to Empower where individuals can aid individuals experiencing homelessness by gaining work, career readiness and other resources that give a helping hand.Opportunity Memphis focuses on R3: rethinking, rebuilding and rebranding individuals between 16-24 looking for workforce readiness in Memphis, Tennessee.

By Ishara Nanayakkara

Multiple state, local and tribal governments have pursued litigation against four U.S. pharmaceutical companies alleging corporate responsibility for the severity of the opioid epidemic. In July of 2021, those corporations agreed to pay a total of $26 billion to settle thousands of individual civil lawsuits. This funding is being used to address the crisis in various ways such as revamping old programs and establishing new ones. Many states have also created committees to make recommendations on how these funds should be allocated. A variety of research-based recommendations are available for policymakers to consider, including:

Distributing Naloxone

The U.S. Department of Health and Human Services has recognized Naloxone as one of the most effective strategies for addressing overdoses. Naloxone is a medicine that can swiftly reverse an overdose when administered into a muscle or given intranasally. But it must be readily available to individuals and a standard part of first responder equipment. The demand for Naloxone is rapidly rising but access is still not widespread. This may largely be due to the high cost of the product and the stigma surrounding opioid use. States are taking action to increase access to Naloxone through Opioid Education and Naloxone Distribution programs. As of 2020, at least 23 states had issued standing orders for local pharmacies, allowing individuals to purchase it without a prescription.

Detecting Fentanyl

Fentanyl is a highly addictive synthetic opioid that is 50-100 times stronger than morphine. This substance is sometimes laced into other drugs, which can lead to overdose and death for individuals that unknowingly consume it. Researchers at The Bloomberg School of Public Health at Johns Hopkins University spoke to individuals that use drugs and found that the significant majority were interested in having their drugs checked for fentanyl contamination so that it could be avoided. The researchers tested three drug-checking technologies—BTNX testing strips, the TruNarc Raman spectroscopy machine and the Bruker Alpha machine—for effectiveness. Fentanyl test strips proved to be safe and easy to use. A one-dollar strip works as a pregnancy test does: a test strip is dipped into a cup containing a few grains of the substance dissolved in water. These tests are highly accurate and can detect even tiny amounts of fentanyl—less than one microgram. These tests can also detect other harmful substances, such as acetyl fentanyl, furanyl and carfentanil. Widespread availability and use of test strips could help prevent accidental overdoses due to fentanyl contamination.

Prevention

The causes of opioid addiction varies among individuals, but there are common risk factors such as financial and housing instability, untreated mental health challenges and chronic physical pain. There are multiple policies and programs that can address these risk factors, ranging from providing housing assistance to creating programs to help individuals become involved in the community.

Educating young people is one well researched, evidence-based policy to prevent substance use and abuse. There are several long-term programs focused on children in school, such as Fast Track and the LifeSkills Training Program. These initiatives vary in structure, with some focusing on drug education and others on shaping overall behavior. These programs can start as early as kindergarten and have been found to effectively reduce drug and alcohol use and can even modify aggressive behaviors.

As mental health issues such as depression and anxiety are commonly correlated with substance abuse, programs that address an individual’s mental health can also help prevent drug use. Programs that “help people have better outlooks” have been found to increase the sense of purpose and well-being among people who are vulnerable to depression. In addition to providing employment assistance, increasing volunteering opportunities and access to community activities—such as art projects and library visits—reduces isolation and helps individuals remain occupied, thereby improving their mental health.

State, local and tribal governments can also direct funds toward ensuring racial equity as the rate of overdoses and death have been increasing in Black populations. Black individuals make up 5% of drug users, but they constitute 33% of those in state prisons for drug offenses. Increasing equitable access to treatments including medication can help address the issue.

Resources for Governments

Rural Health Information HubSubstance Abuse and Mental Health Services AdministrationThe Bloomberg School of Public Health – Johns Hopkins UniversityYouth.gov Resource on Youth Programs for Substance Abuse PreventionRAND Resource on Effectively Allocating Opioid Settlement Funds

By Blair Lozier

As inflation continues to put pressures on communities across the country, many states are implementing a sales tax holiday, or a period when specific items are exempt from states sales tax, to help encourage consumer spending and provide relief for those individuals feeling the pinch of rising costs.

A common example is a “back to school” tax holiday, which removes sales tax on items children need for school including shoes, clothing and school supplies . Recently, states have enacted emergency supplies holidays at times when natural disasters are most prevalent. The tax relief is generally focused on power generators, housing protection and materials to help recover from a disaster that occurs.

This is not a new practice — since 1997, 27 states have implemented at least one sales tax holiday. Michigan and Ohio enacted the first sales tax holidays in 1980, focused on automobile sales. A few years later, New York implemented a sales tax holiday on clothing to compete with neighboring New Jersey, which did not have a sales tax on clothing at the time. In 2021, 17 states temporarily suspended sales taxes to encourage consumer spending, particularly on goods they would purchase anyway.

2022 Sales Tax Holidays

Back to School

This year, 16 states have enacted a “back to school” sales tax holiday stretching between July 15 and Aug. 27, with 11 of those states having holidays during Aug. 5-7. All 16 states include clothing and footwear as sales tax exemptions, and eight include school supplies, accessories and computers among the tax-exempt items. Florida’s holiday also includes learning aids.

State	Dates	What is Included	Itemized list
Alabama	July 15-17	Clothing, computers, computer software supplies, school supplies and books	Qualifying Items
Arkansas	Aug. 6-7	Clothing, clothing accessories, electronic devices, school supplies, art supplies and instructional materials	Qualifying Items
Connecticut	Aug. 21-27	Clothing and footwear	Qualifying items
Florida	July 25-Aug. 7	Learning aid items, clothing and accessories, school supplies and computers and computer-related accessories	Qualifying Items
Illinois	Aug. 5-14	Clothing, footwear and school supplies	Qualifying Items
Iowa	Aug. 5-6	Clothing and footwear	Qualifying Items
Maryland	August 14-20	Clothing, footwear and accessories	Qualifying Items
Mississippi	July 29-30	Clothing, footwear, accessories and school supplies	Qualifying Items
Missouri	Aug. 5-7	Clothing, school supplies, computers and software and graphing calculators	Qualifying Items
New Mexico	Aug. 5-7	Clothing, footwear, computers and school supplies	Qualifying Items
Ohio	Aug. 5-7	Clothing and school supplies	Qualifying Items
Oklahoma	Aug. 5-7	Clothing and footwear	Qualifying Items
South Carolina	Aug. 5-7	Clothing, accessories, footwear, school supplies, computers and backpacks	Qualifying Items
Tennessee	July 29-31	Clothing, school supplies and computers	Qualifying Items
Texas	Aug. 5-7	Clothing, footwear, school supplies, face masks, backpacks and school supplies	Clothing School Supplies
West Virginia	Aug. 5-8	Clothing, school supplies, instruction materials, computers and sports equipment	Qualifying Items

Energy Efficient Appliances

Four states have enacted sales tax holidays in 2022 that are designed to encourage renting, leasing or buying energy-efficient appliances. In Missouri, individual counties have the discretion about whether their merchants participate.

State	Dates	What is Included	Itemized List
Florida	July 1, 2022- June 30, 2023	Energy star appliances	Qualifying Items
Maryland	Feb. 19-21	Energy Star appliances	Qualifying Items
Missouri	April 19-25	Energy Star appliances	Qualifying Items
Texas	May 28-30	Energy Star appliances	Qualifying Items

Severe Weather Preparedness

Three states that are prone to emergencies or disasters enacted sales tax holidays for emergency supplies this year. Qualifying items generally include generators, batteries and various supplies under a designated dollar amount.

State	Dates	What is Included	Itemized List
Alabama	Feb. 25-27	Emergency supplies	Qualifying Items
Florida	May 28-June 10	Emergency and pet evacuation supplies	Qualifying Items
Texas	April 23-25	Emergency supplies	Qualifying Items

Other Forms of Sales Tax Holidays

State	Dates	What is Included	Itemized List
Connecticut	April 10-16	Clothing and footwear	Qualifying Items
Florida	July 1-7	Freedom Week sales	Qualifying Items
Florida	Sept. 3-9	Skilled worker tools	Qualifying Items
Florida	Oct. 1-31	Motor fuel	Qualifying Items
Massachusetts	Aug. 13-14	Annual holiday	Qualifying Items
Mississippi	Aug. 26-28	Second Amendment holiday	Qualifying Items
Nevada	Oct. 28-30	National Guard members pay no sales tax	Qualifying Items
Tennessee	Aug. 1-31	Groceries	Qualifying Items

Costs and Benefits

Tax holidays can have a direct impact on consumers. The timing of consumer spending is often responsive to tax holidays, according to the Federal Reserve. A Massachusetts study found that sales tax holidays boost sales during the entire month of the holiday. According to economic analysts, consumers with higher income take advantage of sales tax holidays more than lower-income consumers. However, whether the holidays contribute to long-term economic activity depends on additional various internal and external factors.

Additional Resources:

2022 Sales Tax Holidays: https://news.bloombergtax.com/tax-insights-and-commentary/some-states-are-offering-sales-tax-holidays-for-shoppers-in-2022

Sales Tax Holiday History: https://itep.org/sales-tax-holidays-an-ineffective-alternative-to-real-sales-tax-reform-2021/