Community Served, Community Led

What is the American Rescue Plan Act?
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by the President. The intent of the legislation was to provide state, local and tribal governments with significant resources to respond to the COVID–19 public health emergency and its economic impacts. The federal program ensured that governments had the resources needed to:

• Fight the pandemic and support families and businesses struggling with its public health and economic impacts;
• Maintain vital public services, even amid declines in revenue; and
• Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity.

Read more about the ARPA here.

How much did the City receive and for what purpose can the funds be spent?
As part of this legislation, the City of Muskegon received a total of $22,881,894 in one-time direct federal aid, through ARPA’s Coronavirus State and Local Fiscal Recovery Funds (SLFRF) to support economic and public health recovery from the pandemic. The city experienced revenue shortfalls that negatively impacted its ability to deliver government services. To the extent of this lost revenue, the city can use ARPA funds to provide government services, including necessary infrastructure projects, in order to meet the community's needs.

City ARPA Community Grant Program

What was the City's ARPA Community Grant Program?
In response to resident feedback and participation, the city has given authorization to utilize this funding to enhance services provided to residents impacted by the pandemic and to fund a variety of transformational projects that will have a long-lasting impact on City of Muskegon residents.

In 2023, the City Commission authorized $1,600,000 to establish a new city-sponsored ARPA Community Grant program which was available to each neighborhood association, non-profit organization and small business located in the City of Muskegon. A total of 60 applications were received requesting nearly $8,000,000 in funding. Twenty-one projects were approved by the Commission, including:

• (4) neighborhood associations, (5) small businesses and (13) non-profit organizations.
• (12) recommended Women- and Minority-Owned Businesses/Organization proposals.
• (8) proposals seek to provide funds for the direct benefit of community youth.
• (3) proposals seek to provide funds to expand access to new housing options for area residents.
• (12) proposals were recommended to receive the full amount of their project request.

Grant funds are intended to advance equity, strengthen the economic vitality of the city, and improve the quality of life for city residents. Proposals are to meet the objectives of the ARPA program and be aligned with the City’s Long Term Goals and strategic priorities.

To inform the City Commission’s funding decisions, the community was asked to share their priorities in recovering from the pandemic. Neighbors provided feedback through a community needs survey as well as the creation of a citizen-led community grant review committee. Creating new workforce housing, assistance to local non-profit organizations and small businesses, and improving the city’s parks and recreation system were prioritized areas for this funding.

To date, 22% of committed ARPA funds have been allocated to housing investments; 20% to local non-profits, small businesses and neighborhood associations for impactful grant projects; and 20% to make improvements to the city's current parks and recreation assets.

Distribtuion of Community Grants by City Commission Ward -

Ward 1 - 3 projects; $333,000 = 21.8% of grant funds
Ward 2 - 17 projects; $1,097,000 = 69% of grant funds
Ward 3 - 2 projects; $200,000 = 12.5% of grant funds
Ward 4 - 2 projects; $145,000 = 9% of grant funds