Maryland received about $3.7 billion from the American Rescue Plan Act, or ARPA, and has allocated about $1.1 billion to “shore up” the state’s unemployment trust fund, according to David Brinkley, secretary of the Office of Budget and Management.
The system is backlogged with thousands of unemployment claims that were brought on in an influx of applications due to government restrictions put in place to slow the spread of COVID-19.
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States were first told that using ARPA funds to fix the system would be considered tax relief, which is prohibited by the bill, but the U.S. Treasury Department reversed that ruling, Brinkley said.
The $3.7 billion refers only to the portion of ARPA funding that can help states with revenue losses incurred since the pandemic.
Of the remaining funds:
- $800 million will support existing pandemic relief that includes the Recovery Now Program, economic impact payments and business support programs.
- $600 million is allocated to support the safe reopening of schools.
- $500 million is allocated to support transportation services and infrastructure.
- $300 million will support broadband infrastructure investments and services.
- $100 million is going to state employees who provide essential services.
- $75 million will be used to expand apprenticeship and employment training programs.
In addition, the state is spending more than $300 million to support social services programs for Marylanders in need. Roughly $140 million will cover a higher than estimated caseload for the state’s Temporary Cash Assistance Program. Another $103 million is going to help residents who have trouble paying their medical bills while $54 million will enhance monthly benefits for residents on the state’s TCA and temporarily disabled programs.
The state is spending $25 million for a temporary 2%-percent rate increase in FY 22 for Maryland’s nursing homes.
The state has also spent millions of dollars on COVID-19 vaccination campaigns.
Nearly $200 million was spent to offer $100 vaccine bonuses to state workers. The employees who received the bonuses would have to return the $100 to the state if they do not receive additional booster shots recommended by the Centers for Disease Control and Prevention, state officials said.
Another $1 million went to the VaxU program, which awarded $50,000 scholarships to Maryland residents between the ages of 12 and 17 who are vaccinated.
The state will use roughly $171 million from a capital project fund that will be used to expand broadband. The state will receive an additional $100 million in federal funds for the expansion.
Brinkley said the state lost about $1.6 billion in revenue during FY 20 because of the pandemic.
