Alabama earmarks $615 million of $2.1 billion ARPA funds for water, sewer infrastructure projects
(UI) – Alabama lawmakers received an update on how the state plans to spend $2.1 billion from the American Rescue Plan Act (ARPA), aimed at recovering from the economic and healthcare impacts of COVID-19.
The largest portion, $615 million, is allocated for water and sewer projects, according to AL.com. Nearly $573 million of this has already been obligated to almost 500 projects, with additional agreements pending. Local governments are contributing $663 million in matching funds, bringing the total investment to over $1 billion.
Though most contracts are signed, only $74 million has been spent, with progress still needed on many projects. The Alabama Department of Environmental Management (ADEM) stated that,while they aim to meet the 2026 deadline for spending the funds, some projects might fall behind. In such cases, money may be reallocated to other projects.
Besides water and sewer projects, ARPA funds are also supporting broadband expansion and prison construction. Alabama received its funds in two installments and has used a portion of the money to build a $1 billion prison.
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