Uncertainty About COVID Rescue Funds

Millions of dollars have been allocated for communities in Fayette County as part of the national American Rescue Plan. However, no one really know what it can be used for yet.

The U.S. Congress passed the American Rescue Plan earlier this year to provide nearly $2 trillion in economic stimulus aimed to help the nation recover from the COVID-19 pandemic. Of that amount, $360 billion was allocated to local governments.

The City of La Grange expects to receive $580,000 this year and a roughly equal amount next year. City Manager Shawn Raborn said the program’s broad guidelines state that local governments can use the money for water, sewer and broadband internet projects. Since La Grange doesn’t offer broadband internet as a City service, Raborn said La Grange could likely only use the money for water and sewer. He anticipated the City would use the funds to pay for infrastructure improvements such as sewer lift stations and generators for the City’s water pumps.

“We are all looking for clear guidance on what the funds can be used for,” Raborn said.

The plan allocated a little over $4.9 million to the Fayette County government. Emergency Management Chief Craig Moreau said the County is also waiting for guidance before spending any of the money.

“There hasn’t been any final guidance yet,” said Moreau. “They will release final guidance shortly, we’re expecting it in September. Some communities have already spent money waiting for rules, but we are waiting.”

Schulenburg City Secretary Mason Florus said his City is set to receive about $640,000 through the program.

“We don’t want to use it for something else and then get audited and dinged for it,” Florus said.

Flatonia City Manager Sarah Novo said the program allocated about $300,000 for her city.

“It’s not clear what we can use the funds for yet,” Novo said. “Of course, we have quite a few pressing projects. We’ve already applied for other grants. One for a wastewater treatment facility and another for wastewater runoff and storm drainage around town. Also have pressing street projects. It will be absolutely wonderful if these funds arrive.”