The city of Grand Rapids will continue to fund several programs started with the $92.3 million received from the federal American Rescue Plan Act (ARPA).
The one-time funds, received in two roughly equal installments in 2021 and 2022, have supported pandemic recovery efforts, with expenditures set to conclude by January 2027. As of early 2026 mid-year updates, the city had spent the vast majority of its ARPA allocation, with a relatively small remainder to be drawn down by the 2026 deadline.
The city, as a result, is phasing out reliance on these dollars in its FY2027 budget while transitioning select initiatives to local funding sources.
City documents detail a broad range of investments across categories totaling the full $92.3 million allocation.
Of the $92.3 million, the largest share, around $36.5 million, helped backfill lost income tax revenue to sustain city operations during the 2020 and 2021 lockdowns.
Another $8.4 million was spent to address homelessness, largely via nonprofits around the city to support housing projects and other undertakings like the Mel Trotter Ministries belongings storage program.
Approximately $13.3 million went to parks, trails, and targeted neighborhoods.
The city also appropriated over $10 million to construct the new, 25,000-square-foot Martin Luther King Lodge at MLK Park, replacing the old 5,000-square-foot community center.
Nearly $20 million was allocated to new government public works buildings, and the remainder was split among technology improvements, violence reduction, and special events.
Chief Financial Officer Molly Clarin told The Herald via a city spokesperson that, because the ARPA grant was a one-time boost, the majority of the use was for one-time items, such as infrastructure, Greenway projects, housing projects, city parks, and capital outlays for technology infrastructure and software.
With ARPA sunsetting, city officials have chosen to continue select programs using general funds, other grants, or dedicated revenues. One prominent example is the Mel Trotter Ministries Belongings Storage Program, which was previously ARPA-funded.
The city is allocating $100,000 from the Refuse Fund to continue this service and is hoping for local grants to cover the remainder.
The city will also continue to spend on housing and homelessness efforts that were started with ARPA funds. The FY2027 budget includes $8.2 million in federal Community Development funding, with nearly $7 million directed toward homelessness prevention, housing stability, and related programs.
Write to jacob@grherald.com.