How Louisville Plans To Spend Its Next $342 Million In Federal American Rescue Funding

Oct 26, 2021 at 4:07 pm
Mayor Greg Fischer announces his plans for the next round of American Rescue Plan funds.
Mayor Greg Fischer announces his plans for the next round of American Rescue Plan funds.

Louisville has $342.8 million left to spend in American Rescue Plan Act funds from the federal government. Here’s what it hopes to do with $262.9 million of it (contingent upon Metro Council approval on Nov. 11.)

The biggest chunk, $100 million, is going toward homelessness and affordable housing, specifically, according to a news release: 

  • An Outdoor Safe Space: $1.5 million going to 50 tents, equipment, portable facilities and supportive services at a new outdoor safe space for people who are homeless at 212 E. College Street.
  • The College Street Property: $7.5 million will be utilized to convert a building on the property into affordable housing units. During the renovation of the first floor, access to electric and water can supplement services to the Outdoor Safe Space.
  • Permanent Supportive Housing: $32 million for “client-centered housing” with wrap-around services.
  • Affordable Housing: $40 million would be invested in affordable housing units through the Louisville Affordable Housing Trust Fund.
  • Down Payment Assistance: $4 million to increase down payment assistance to help approximately 150 new homeowners.
  • Home Repair:  $4 million to fund an existing successful program that helps people stay in their homes. The $4 million would aid approximately 150 homeowners.
  • HOME ARP Funds: An additional $11 million in HOME ARP funds will be allocated for homelessness or housing programs after a federally required community engagement process and HUD approval.
The second largest proposed allocation, $78 million, is to public safety funding, which Fischer called his “number one priority” in a statement. Some of the money will fund violence prevention programs that don’t involve police, while others will go straight to law enforcement.
  • Public Safety Reforms: $35 million for addressing public safety reforms recommended by the Hillard Heintze report that the city commissioned to study the Louisville Metro Police Department and any improvements learned from the Department of Justice. These measures are focused on accountability, community engagement and training, with the goal of constitutional and effective policing.
  • Violence Deterrence and Prevention: $15.8 million to expand current Violence Deterrence and Prevention programs that have proven outcomes and a long-lasting impact. This includes increased funding for the Trauma Resilient Communities initiative within the Office for Safe and Healthy Neighborhoods (OSHN); increased collaboration on the Group Violence Intervention initiative; and expansion of other programs.
  • Office of Youth Development/Youth Activities: $15 million to provide meaningful, evidence-based youth programs and increased coordination between the Office for Safe and Healthy Neighborhoods and existing partners delivering youth programming in the community. (The office will also be moved from the Office of Resilience and Community Services to OSHN.)
  • Youth Transfer Processing Center: $3 million to create a Youth Transfer Processing Center/ This includes hiring five Court Sworn Officers to accept youth detainees from police officers.
  • Everytown USA Data Fellow: $117,000 to match a grant provided by Everytown for Gun Safety for a fellow who will provide in-depth gun crime analysis.
  • Police Deflection: $2.9 million for Louisville’s new 911 diversion program.
  • Family Recovery Court (Seven Counties): The ordinance would provide funding to continue the Family Recovery Court for an additional year. This initiative is for parents who are involved with the child welfare system and have a history of substance use.
  • LMPD Technology: $6 million to LMPD for new equipment and increased storage capacity.
Fischer also hopes to allocate $21 million in “premium pay” for Louisville Metro government employees. Essential public safety employees will receive $5,000 and other essential employees will get $1,500. Employees who are vaccinated will receive $500, too.

The remaining money will go to:

  • Public Health Contingency: $27.6 million for contingency funding, focusing on COVID essentials.
  • Administrative Support: $20 million to administrative support for the spending. Contingency Reserve: $20 million for unforeseen events over the life of the grant.
The city already approved allocation of $45.2 million in ARP funds earlier this year.

If Metro Council approves this round of funding, the city will have $80 million left to spend.

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