Metro Lex News

A recent study by the Institute on Race, Power and Political Economy at The New School has identified Lexington as a model for utilizing funds from the American Rescue Plan Act (ARPA) to promote racial and economic equity. The study is part of the Institute's Budget Equity Project, which examines how local governments across the United States are using ARPA recovery funds to support equity in their communities.

Lexington was highlighted among several case studies that showcase innovative practices in equitable public investment. "We worked hard to listen to the community and put together a spending plan for our federal ARPA dollars that both benefited our entire community and addressed our city’s most pressing challenges," said Mayor Linda Gorton. She credited the city's staff for their efforts, stating, "Thanks to the hard work of a very talented city staff, this study confirms that our plan is equitable."

The ARPA provided $130 billion in flexible funding for cities and counties aimed at COVID-19 pandemic relief and long-term investments. Lexington received $121 million from these funds. For the first time, federal recovery funds were guided by an equity policy from the Biden-Harris administration targeting resources towards communities disproportionately affected by systemic inequities.

Jenifer Wuorenmaa, Lexington’s ARPA Project Manager, explained how the funds were used: “Funds from then American Rescue Plan Act were distributed to municipalities to aid in economic recovery from COVID-19. Proudly, Lexington funded projects and programs in all Council Districts, with allocations toward initiatives such as affordable housing violence prevention, homelessness prevention and intervention, and improvement of public spaces.”

The findings of the Budget Equity Project are detailed in a report titled "Advancing Equity with the American Rescue Plan’s Local Recovery Funds." It includes a comprehensive database featuring assessments of 170 U.S. cities' ARPA investments.

Dr. Darrick Hamilton led this research effort as Founding Director of the Institute on Race, Power and Political Economy. He noted that "the distribution of flexible ARPA recovery funds was part of an unprecedented fiscal response" focusing on historically excluded communities.

Sarah Treuhaft, Director of Policy and Partnerships at the Institute and co-author of the report added: “Our study shows the positive impact and ripple effects of flexible federal recovery funds when anchored by clear equity guidelines.”

For further information or interviews with those involved in creating this report, Chris Jenkins can be contacted at jenkinsc@newschool.edu.