Texas received $16.3 billion from the federal government as a part of the American Rescue Plan Act (ARPA). The money is to help Texas recover from the impact of the pandemic. The legislature passed Senate Bill 8, appropriating $13.3 billion ARPA dollars to specific needs. The balance of $3 billion will be allocated by the next legislature.

Largest ARPA allocation by the legislature was $7.2 billion to replenish the Texas Unemployment Compensation Trust Fund. The benefits paid to Texans put out of work by the pandemic shutdowns bankrupted the fund. Normally Texas businesses would have to replenish the fund through the unemployment insurance payroll tax. During the regular session the legislature approved a bill by Representative Angie Chen Button delaying the start of repayment. Senate Bill 8 eliminates the obligation for business to replenish the fund. This was a huge Chamber priority.

In great news for another major Chamber priority, the newly created office of broadband expansion will receive $650 million earmarked for grants to close the broadband gaps in rural and urban Texas. The legislature funded the creation of the office, but the budget had no funds to make grants to put broadband in people’s homes. This is also great news for rural telemedicine.

Supporting another major Chamber priority, Senate Bill 8 allocated $467 million for education and workforce. It is disappointing only $15 million was allocated to the TRUE initiative authored by the community colleges of Texas who asked for $75 million to reskill and upskill 50,000 Texans to get them quickly back into the workforce. The Chamber supported funding of the full amount.

Mental health, which has been a Chamber priority for the last three legislative sessions received $405 million. Almost $300 million will be used to construct a mental health hospital in Dallas County. This was a major priority of the Greater Dallas Chamber and the city of Dallas which your Chamber supported.

Healthcare and Covid-19 response payments will be reimbursed with $2.8 billion ARPA dollars. Criminal justice and public safety expenditures will receive another $656 million.  A number of additional priorities were funded with smaller amounts.

The federal government requires that all ARPA funds allocated to states must be spent by December 31, 2026. Investing these funds in Texas should result in increased economic activity and reduced unemployment. Even the $7.2 billion used to replenish the unemployment comp fund will keep a like amount of money in the hands of business owners who will know best how to use it to grow their businesses.

Our thanks to Texas 2036 who contributed data for this post. Texas 2036 is a non-profit committed to education and economic development in Texas. Learn more at www.texas2036.org.