$479M In Federal COVID Relief: RivCo Revises Its Spending Plan

RIVERSIDE COUNTY, CA — The Board of Supervisors Tuesday authorized changes in provisional spending plans for Riverside County's share of American Rescue Plan Act funds, designating higher and lower portions of the county's $479 million allocation to meet infrastructure, homeless relief and other needs.

County Chief Executive Officer Jeff Van Wagenen said that the revised disbursal schedule was based on the receipt of firmer guidelines from the U.S. Department of Treasury and other federal agencies, permitting the county to focus on more "specific" goals.

The county received the first half of its ARPA distribution — $239.9 million — last May, and the balance is due during the current fiscal year that ends June 30.

The allocation categories are infrastructure, homelessness solutions, economic recovery, public health, revenue backfills for agencies impacted by COVID containment measures, nonprofit assistance, rental assistance and child care.

The main change in the distribution formula stems from a reduction in what federal officials will permit for revenue backfill, which has been slashed from $22 million to $10 million. That prompted a reordering of priorities, according to the Executive Office.

Under the board-approved provisional spending plan, the infrastructure component will now be $82 million, instead of the $65 million originally proposed. Those funds will go to road improvements, but also the expansion of broadband internet access to remote areas of the county.

"A Broadband Affordability Program is being developed to support under-served households and help close the 'digital divide,"' according to an EO statement posted to the board's agenda.

Officials are refining the particulars of the project, which is initially likely to require $5 million to $7 million, and a presentation is expected to be made to the board by the Transportation & Land Management Agency in March.

A total $235 million of the $479 million is expected to be made available for rental assistance, which entails providing direct payments to landlords to discharge delinquent rent payments and pay ongoing lease costs to prevent renters from being evicted.

Applicants for rental assistance must meet certain income and other criteria. Two nonprofits are coordinating with the county to handle assistance applications — Palm Desert-based nonprofit Lift to Rise and Riverside-based United Way of the Inland Valleys.

The county has set aside $50 million for homeless relief, which will be allocated to programs in each supervisorial district, officials said.

The Executive Office said $36 million is designated for economic recovery, providing monetary infusions for "programs to assist businesses and industries struggling to rebound" from the public health lockdowns.

There will be $16 million available for nonprofit assistance, shoring up organizations countywide that render aid in a variety of forms, from food banks to legal help.

About $15 million has been reserved for the child care component of the provisional spending plan, intended to support "the return of working parents to the workforce" by bolstering programs centered on expanding daycare and similar family assistance, according to the Executive Office.

The plan calls for a $30 million investment in the county health system, which remains "on the front lines" of coronavirus mitigation efforts, the Executive Office said.

In addition to ARPA funds, the county received roughly $480 million in 2020 Coronavirus Aid, Relief & Economic Security Act — CARES — funds.

The deadline to spend most of the ARPA money is Dec. 31, 2024. However, there's an exception for funds channeled into infrastructure projects, which can be spent anytime between now and Dec. 31, 2026, according to county documents.

The $1.9 trillion ARPA was approved by Congress in March 2021.