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The American Rescue Plan Act in Kentucky

Berry Craig
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From BILL FINN, state director

Kentucky State Building and Construction Trades Council

President Biden’s American Rescue Plan Act is a $1.9 trillion COVID recovery effort. Kentucky’s portion has brought approximately $2.4 Billion in infrastructure spending to the Commonwealth to be appropriated by State Government. This unprecedented amount is to be appropriated for specific purposes that are not yet finalized. About $1.3 billion of the total was appropriated so far by joint agreement of the Legislature and the Governor in the final two days of the 2021 Session.

The federal loan KY secured to cover the shortfalls in the Unemployment Insurance due to the COVID pandemic totaled approximately $505 million. Under HB-382, that loan was paid back along with an additional $70 million appropriated in reserve for future UI claims. There is an additional $200 million still in reserve from the CARES Act leaving approximately $270 million to cover claims through the pandemic.

The past few years Kentucky’s Building Trades have battled to defeat unemployment cuts to weekly benefits and maintain the 26 week duration period. The payback of the federal loan should help relieve some of that pressure but we’re sure to see attempts to cut the benefits further in the future.

To increase broadband service badly needed throughout the state, $250 million of the American Rescue Plan was appropriated for last mile coverage. Another $50 million was already appropriated in the 2022 KY budget. The $300 million total will open up coverage for much of the state and create much needed jobs.

In SB-36, another $250 million was appropriated under the American Rescue Plan Act to upgrade water and wastewater treatment facilities in Kentucky.

Over $100 million more was appropriated for school construction with more details to come.

Over $1.1 billion of the American Rescue Act Plan remains to be invested in Kentucky. Details are not clear if there will be a Special Session called in order for the Governor and the Legislature to divide this money sorely needed here in Kentucky.

These unprecedented amounts of infrastructure investments will create thousands of jobs for our construction members in Kentucky with more still to be appropriated. Many details are not yet clear on exact amounts and specified projects as we wait for more information.

The American Rescue Plan amounts Kentucky received is the largest infrastructure investment Kentucky has ever seen. Democratic Congressman John Yarmuth is the only member of Kentucky’s Congressional delegation to vote in favor of the important bill to Kentucky. Every Republican Congressman and Senators McConnell and Paul voted against the passage of this important bill to the working men and women of Kentucky’s Building Trades.