Independent Report Ranks Baltimore #3 in the U.S. for Equitable ARPA Spending

For interviews with the Budget Equity Project team and report authors, contact Chris Jenkins, Director of Media and Communications at the Institute, at [email protected].

BALTIMORE, MD (Wednesday, September 25, 2024) - This week, a new multiyear study conducted by the Institute on Race, Power and Political Economy (the Institute) at The New School named Baltimore as the third highest performing jurisdiction in the U.S. in investing federal funds from the American Rescue Plan Act (ARPA) of 2021 to advance racial and economic equity.

Baltimore ranked third (tied with Austin, TX) of 170 U.S. cities and counties evaluated by the Institute's Budget Equity Project, which examined how local governments across the U.S. are utilizing ARPA funds to support equity in their communities. Based on its classification of investments reported in July 2023 to the United States Department of Treasury, the Institute's ARPA Equity Assessment found that Baltimore devoted 81 percent of $336.7 million in obligated funds towards equity-focused investments, as defined by their classifications.

"Building an equitable city and tackling the intentional disinvestment that so many of our neighborhoods and residents have endured has been a cornerstone of my time as Mayor," said Mayor Brandon M. Scott. "This assessment is yet another proof point that our use of ARPA funding - and the work of the Mayor's Office of Recovery Programs - is changing lives and strengthening our city. I am extremely proud of the work that MORP has done and the way that all of Baltimore's ARPA recipients have put this funding to use to help fuel Baltimore's renaissance in a way that works for all of our residents."

"Since the inception of the Mayor's Office of Recovery Programs, the Scott Administration has placed equity as one of the primary tenants of ARPA-funded projects for the historically marginalized and in areas in that have lacked investment," said Shamiah Kerney, Chief Recovery Officer. "Our work is truly for the long-lasting benefits of Baltimore City residents, and I'm proud of the work we have and continue to do to prioritize equity."

Nationwide, ARPA provided an unprecedented $130 billion in flexible funding for cities and counties to use for COVID-19 pandemic relief and longer-term, transformational investments. Federal recovery funds were guided by the Biden-Harris administration's path-breaking equity policy by targeting resources to the communities of color, Tribal communities, and low-income communities disproportionately impacted by the pandemic and systemic inequities.

The City of Baltimore received $641 million in ARPA State and Local Fiscal Recovery Funds (SLFRF). Investments address both immediate and long-term challenges, including racial and economic disparities that were further exacerbated by the COVID-19 public health emergency. Equity has been the cornerstone of the ARPA funding strategy since Mayor Brandon M. Scott established the Mayor's Office of Recovery Programs in July 2021. Highlights include:

• Direct Financial Relief to individuals and families, helping them navigate the economic challenges brought by the pandemic. For example, two hundred young families benefited from the two-year, $4.8 million Guaranteed Income program.
• Support for Small Businesses, particularly BIPOC and women-owned businesses, through grants and technical assistance. For example, an ARPA-funded nonprofit is implementing a fellowship for 28 historically underrepresented small business owners to receive coaching, training, and support for re-launching or expanding their businesses.
• Youth throughout Baltimore are benefiting from ARPA investments in world-class recreation facilities and through ARPA-funded programs that create opportunities to contribute, learn, grow, and engage.- ¯For example, ARPA is providing more than $11M to the City's summer youth employment program and two new year-round youth employment programs.
• Housing and Homeless Services investments represent nearly 30 percent of the total ARPA allocation, creating new affordable housing, supporting legacy homeowners, addressing blight, among many initiatives. For example, the Housing Accelerator Fund is dedicating $17.1 million to the development of permanent supportive housing.
• City Services have been bolstered by ARPA to promote cleaner, healthier, safer, and more connected communities. For example, Baltimore has deployed free public wi-fi at 50 locations throughout the City, with a focus on recreation centers, senior centers, and main streets.

The Institute's ARPA Equity Assessments measure performance across six dimensions of equitable public investment: 1) overall equity focus; 2) application of equity tools and institutional infrastructure; 3) community engagement; 4) use of equitable labor practices; 5) breadth and depth of equity investments; and 6) investment transparency/accountability. The ARPA Equity Assessment of Baltimore provides an overview of local ARPA investments and a detailed performance assessment across the key dimensions.

The Budget Equity Project's full findings are detailed in the new report, Advancing Equity with the American Rescue Plan's Local Recovery Funds, and a comprehensive database including 170 city and county ARPA Equity Assessments, more than 40 case studies, additional policy briefs, and more.

"The distribution of flexible ARPA recovery funds was part of an unprecedented fiscal response that included some direct investment in the productivity and wellbeing of the American people with some emphasis on historically excluded and disinvested communities," Dr. Darrick Hamilton, Founding Director of the Institute, said. "The Institute's Budget Equity Project offers an extensive first look at how local governments are putting ARPA recovery dollars to work in diverse and innovative ways to advance equity and racial inclusion."

"Our study shows the positive impact and ripple effects of flexible federal recovery funds when anchored by clear equity guidelines," Sarah Treuhaft, Director of Policy and Partnerships at the Institute, head of the Budget Equity Project, and report co-author, said.

The Institute hosted a national webinar on Tuesday, September 24, presenting findings from the study and featuring a panel discussion with local and federal leaders from across the country working to leverage ARPA recovery funds to support racial and economic equity in their communities.

About the Mayor's Office of Recovery Programs
The American Rescue Plan Act (ARPA) provided $641 million to the City of Baltimore in response to the COVID-19 public health emergency and its negative economic impacts. Mayor Brandon M. Scott has established the Mayor's Office of Recovery Programs to transparently and effectively administer this funding on behalf of the City. For additional information, visit the Mayor's Office of Recovery Programs website at arp.baltimorecity.gov

About the Institute on Race, Power and Political Economy
The Institute on Race, Power and Political Economy advances research to understand structural inequalities and works to identify groundbreaking ways to promote equity. A premier cross-disciplinary hub, the Institute draws on faculty across The New School in New York City, which has long fostered innovative thinking about power, structure, design, politics, economics, and society. The Institute engages with researchers and practitioners, including community and business leaders, policymakers, philanthropists, and journalists across the nation and around the world.

About the Budget Equity Project
The Budget Equity Project at the Institute on Race, Power and Political Economy aims to equip community leaders and policymakers with research, tools, and frameworks to support equitable local budgeting. Through this project, the Institute is tracking whether and how local governments are making equitable investments with their federal American Rescue Plan Act fiscal recovery funds and documenting exemplary investments and approaches. The project team is also producing a prototype budget equity assessment tool for community leaders to use to champion equitable budgeting processes and investments.

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