LOUISVILLE, Ky. — Mayor Greg Fischer (D) on Thursday outlined his proposal for spending $38.9 million of the $388 million Louisville is receiving from the federal American Rescue Plan (ARP). In a press release, Fischer said the initial spending would be focused on COVID-19 related health needs, instability experienced by vulnerable residents and economic recovery. 

“These are initiatives that tackle immediate challenges, providing funds for agencies that can very quickly deploy the money and have an immediate impact,” Fischer said. “Because while our city and nation are reopening – more people vaccinated and more of us enjoying restaurants, concerts and shops – there are still far too many who continue to suffer the health and economic impacts of COVID.” 

Fischer’s proposal, included in an ordinance sponsored by Metro Council President David James, Budget Chairman Bill Hollander and Vice Chair Kevin Kramer, proposes the following:

COVID-19 Health Needs

• COVID-19 response and vaccination activities: $10,000,000
• Childcare emergency and safety supplies: $1,500,000
• Suicide prevention: $400,000
• Residential services for substance abuse and addiction: $1,200,000

Vulnerable Resident Stabilization Needs

• Court eviction diversion program: $10,000,000
• Utility assistance program: $5,000,000
• Security deposit and rental assistance: $1,000,000
• Temporary support for emergency food distribution: $250,000

Economic Recovery

• Louisville Tourism marketing funds: $5,682,500
• Downtown events and activation coordination: $500,000
• Enhanced ambassador and security program for downtown and Waterfront Park: $3,450,000

This initial round of funding is focused on urgent needs that the city can act on quickly, Fischer said.

“Many groups and individuals have submitted other ideas, and Metro Council members have some of their own, too,” he said, “and those all will remain under consideration as we turn our focus to addressing some of our longer-term needs.”

Going forward, Fischer said the city’s plans for remaining American Rescue Plan funds will lean on the work of its Build Back Better, Together (B3T) initiative, created in 2020 as the city’s framework for creating an equitable recovery from the pandemic; as well as the Mayor’s plan for Advancing Racial Equity; A Path Forward, presented by community leaders; and from Metro Council.

He cautioned that while the $388 million in ARP funding is a lot of money, it's not nearly enough to solve all of Louisville Metro's challenges. For example, Metro has over $2 billion in deferred maintenance costs alone.

Mayor Fischer will collaborate closely with Metro Council and seek ideas from the public. Today he launched an online forum for residents to provide their ideas for how the remaining ARP funds should be used.

“These are your taxpayer dollars, and in less than five minutes you can share how you think they should be spent,” the Mayor said.

In addition, the Mayor said he is recommending that $15 million, recouped from FY21 general fund expenditures that were ARP eligible, be directed to previously recommended capital projects that would have been funded with debt, which will reduce the city’s borrowing in FY22.

“Clearly, we have challenges as a city, but with the ARP federal funds and a better city budget outlook, we have the resources to address some of those challenges," Fischer said. "We have the opportunity, as I said before, to take ideas we once reserved for some day and turn them into reality now."