American Rescue Plan State Recovery Funds Can Make a Crucial Difference in Addressing Longstanding and Pandemic-Induced Hardships

The American Rescue Plan Act (ARPA) is an extraordinary response to the health and economic impact of the COVID-19 pandemic. It is also an opportunity to begin undoing longstanding racial and economic inequities that the pandemic exposed and worsened. 

How our elected officials choose to spend the funds—and what complementary policies they put in place for the long term—will make a crucial difference in limiting pandemic-induced hardships and building a more equitable recovery. 

Ohio has already received $2.7 billion of its allocated $5.4 billion in ARPA State Fiscal Recovery Funds. In June, the Governor and General Assembly approved spending $1.8 billion of the first payment. The allocations—to the unemployment compensation trust fund, water and sewer infrastructure, and pediatric behavioral healthcare—were approved without the opportunity for public input or feedback. 

This historic opportunity to invest in people, communities, and infrastructure deserves a robust planning process drawing on experts, state and community leaders, and people most harmed by the pandemic. The spending of the State Fiscal Recovery Funds should complement and support the ARPA’s other funding streams, maximize other federal and local resources, and take a long-term view for recovery. 

We are asking Governor Mike DeWine and the General Assembly to establish a transparent, public process for determining the best use of these funds for an equitable recovery for all Ohioans. 

As part of its planning process, Ohio should consider the best ways to address economic and health racial disparities, improve access to behavioral health services, increase childcare capacity and access for Ohioans returning to work, expand access to high-speed broadband, and address Ohio’s affordable housing crisis. 

In addition, we are asking Ohio’s leaders to direct funds to help with specific, pressing issues including: 

Outreach for the Child Tax Credit. In March, Congress temporarily expanded the child tax credit in the American Rescue Plan. In July, families began receiving monthly child tax credit payments. While many families are receiving the expanded child tax credit checks automatically because they filed a tax return in 2020 or 2019 or signed up to receive stimulus checks, there are unfortunately many Ohio families who are eligible for but are missing out on the child tax credit because they are unaware or unable to access the new benefits. We support the Ohio Children’s Budget Coalition’s proposal to invest $10 million in ARPA funds to hire and train child tax credit navigators to assist families to enroll in the expanded tax credit. A short-term navigator program will provide significant returns for Ohioans—simultaneously helping Ohio’s families put food on the table and fueling local businesses. 

Reduce Lead Exposure. Lead poisoning is costing our state billions in poor health and lost productivity. There is no safe level of lead in the human body, yet each year thousands of children all across the state of Ohio are poisoned by lead. In 2019 alone, approximately 3,500 children in Ohio had elevated levels of lead in their blood. A recently released report from JAMA Pediatrics found that Ohio had the second-highest rate of children with elevated blood lead levels in the nation. We support the Ohio Lead-Free Kids Coalition request that $500 million in State Recovery Funds be dedicated to residential lead abatement and lead hazard control across the state over the next two fiscal years.

Support for Local Emergency Rental Assistance Programs. Between the Consolidated Appropriations Act and the ARPA, Ohio will receive $1.4 billion for emergency rent and utility assistance. The dedicated Emergency Rental Assistance (ERA) funding from the Consolidated Appropriations Act went either directly to cities and counties with larger populations or was sub-granted by the state to community action agencies serving smaller jurisdictions. The distribution of this much-needed assistance for eligible renters and property owners has been a challenge for many local agencies. They are overwhelmed with applications and staffing shortages. These barriers could put the dollars at risk while the need for assistance remains high. Ohio should dedicate either State Fiscal Recovery Funds or a portion of the ARPA ERA dollars toward a state-level support system for housing stabilization and a streamlined process across jurisdictions. Ohio could help communities respond to questions, process applications, and ensure dollars are getting in the hands of those who are at risk of eviction.

We urge Ohio’s leaders to immediately begin a public planning process to ensure Ohio’s Fiscal Recovery Funds are used to support a strong and equitable recovery for all Ohioans. 

Eviction Expungement Legislation Hears from Proponents

The Senate Judiciary Committee heard proponent testimony on Senate Bill 158, to create statewide eviction expungement. Proponents, including legal aid attorneys, spoke of the need for eviction expungement in rural Ohio because of the difficulties in finding new housing that is affordable and safe. One attorney noted that “…[T]his issue is so pervasive that tenants I have worked with decided to voluntarily vacate rather than fight a possibly defensible case because they are so fearful of having an eviction on their record.” 

They also testified that urban areas such as Columbus and Cleveland have eviction-sealing court rules, allowing for individuals in those cities to seal prior evictions. Enacting statewide eviction expungement legislation would level the playing field for all Ohioans seeking safe and affordable housing.