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Las Cruces updates councilors on use of American Rescue Plan Act funds

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Mayor Eric Enriquez, City of Las Cruces | City of Las Cruces

Las Cruces City Councilors met in a Work Session on September 9, 2024, to receive an update on the allocation and impact of funds received from the 2021 American Rescue Plan Act (ARPA).

Leeann DeMouche, the City’s Director of Finance, reported that Las Cruces had received two tranches of $12.4 million each to mitigate the economic impact caused by the COVID-19 pandemic. According to DeMouche, these funds must be obligated by December 31, 2024, and spent no later than December 31, 2025.

As of June 30, 2024, the city has spent or obligated 82 percent of the $24,759,826 received through ARPA. The city retains $4,365,328 in ARPA funds that are not yet obligated.

A significant portion of the ARPA funds—approximately $10.4 million—was allocated for capital improvement and water/sewer projects. One major project will utilize about $2.2 million in ARPA funds for an infrastructure rebuild at Casa Linda Acres. This project includes new roadways, sidewalks, lighting, drainage with green infrastructure, gas lines, water lines and sewer systems. Construction is anticipated to begin in November 2024 and should be completed within nine months.

The allocations of ARPA funds and their respective percentages spent or obligated include:

- Public Health/Safety: $2 million (81 percent)

- Visit Las Cruces: $1 million (89 percent)

- Premium Pay: $958,500 (100 percent)

- Water/Sewer Projects: $3.5 million (34 percent)

- Capital Projects: $6.888 million (97 percent)

Additionally, more than $9.5 million was distributed to area non-profit organizations to aid in community recovery from the pandemic. Most non-profits have spent or obligated all their ARPA funds.

Detailed information about the city's use of ARPA funds can be found on the City of Las Cruces website.

President Joe Biden signed the $1.9 trillion American Rescue Plan Act on March 11, 2021; it is a federal stimulus bill aimed at aiding economic recovery from the COVID-19 pandemic.

The next regular session of Las Cruces City Council is scheduled for September 16, 2024 at Council Chambers located at 700 N Main St., starting at 1 p.m. All meetings can be viewed on the City’s YouTube channel.

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