City of San Marcos allocated $18.1 Million in federal COVID-19 relief funding

Staff Reports

The City of San Marcos has been allocated $18.1 million as part of the $350 billion American Rescue Plan Act, signed by President Biden on March 11, 2021. The funding is distributed by the U.S. Department of Treasury in response to the economic impact of the COVID-19 pandemic.

 “As our recovery from the economic hardships of the COVID-19 pandemic continues, this funding will ensure the City is able to continue to provide essential services with the care and efficiency our residents deserve,” said City Manager Bert Lumbreras. “We extend our gratitude to our federal delegation who supported this legislation, including Rep. Lloyd Doggett and Rep. Vicente Gonzalez.”

 The City is among six Central Texas local governments to receive direct funding from the relief package including Austin, Cedar Park, Georgetown, New Braunfels, Pflugerville, and Round Rock.  Funding may be used to respond to acute pandemic response needs, fill revenue shortfalls of local governments, and for investments in critical water, sewer, and broadband infrastructure.

 “Our American Rescue Plan offers over $18 million in reinforcements to our City leaders who have been working so diligently to address the pandemic’s impact on local families,” said Congressman Doggett. “In addition to direct aid to families, schools, businesses and Texas State, our Rescue Plan recognizes that our local governments have been shouldering so much of the burden of leadership. I am confident they will put these resources to good use.”

 The City has begun completing the requirements for the U.S. Treasury’s submission process that will allow 50% of the funding to be provided upfront with the balance being delivered one year later.  Funding allocated to the City through the American Rescue Plan Act must be spent by the end of 2024 and staff will work with City Council to determine the most effective uses for the funding.