The City of Champaign has been recognized as an innovative national leader for how it used federal American Rescue Plan Act (ARPA) funds to advance equity in a multiyear study conducted by the Institute on Race, Power and Political Economy (Institute) at The New School. The City of Champaign’s ARPA investment strategy is highlighted by the Institute’s Budget Equity Project, which examined how local governments across the country are investing ARPA recovery funds to support equity in their communities. The City’s Garden Hills Neighborhood Infrastructure and Improvement Project is featured among a select set of case studies showcasing innovation, impact, and best practices in equitable public investment.
“It is an honor for the City of Champaign to be recognized by the Institute’s Budget Equity Project and to be highlighted as a featured case study,” said Champaign Mayor Deborah Frank Feinen. “I am proud of the intentional work Champaign did to engage with our residents while determining the most impactful ways in which we could use our ARPA funds. After hearing from residents, we used a major portion of our ARPA allocation to significantly advance the construction schedule for the long-planned project in Garden Hills to construct new infrastructure, a stormwater retention basin, and a community park. This project will have a transformative impact on the Garden Hills neighborhood for generations to come, and it is rewarding to see this project highlighted by the Institute.”
Across the United States, ARPA provided $130 billion in flexible funding for cities and counties to use for COVID-19 pandemic relief and longer-term, transformational investments. These federal funds were guided by a new equity policy by targeting resources for communities of color, Tribal communities, and low-income communities disproportionately impacted by the pandemic and systemic inequities.
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 ARPA Equity Assessments of 170 U.S. cities and counties. This also includes more than 40 case studies of ARPA investments that are particularly innovative, community-driven, targeted to historically underserved or marginalized groups, or potentially transformational, including Champaign’s.
Led by economist Dr. Darrick Hamilton, the Henry Cohen Professor of Economics and Urban Policy at The New School, the Institute on Race, Power and Political Economy is a leading center for research to understand structural inequalities and identify groundbreaking ways to promote equity.
“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. “Leading cities are demonstrating that centering equity throughout the process and engaging with the most-impacted communities results in investments that drive transformative change.”
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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.