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Some ARPA funding to be rescinded as part of debt limit deal

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Posted at 6:03 PM, Jun 01, 2023
and last updated 2023-06-01 19:31:19-04

MILWAUKEE — Federal lawmakers are racing against the clock to avoid a first-ever default ahead of June 5. That's the day the treasury department said it will no longer be able to pay the nation's bills in full and on time.

The U.S. House of Representatives passed the debt limit deal and now the Senate will have to vote before it can be sent to President Biden's desk.

As part of the deal, the debt limit would be suspended until after the upcoming presidential election, veterans' healthcare benefits would be protected and it temporarily broadens work requirements for certain adults receiving food assistance benefits.

The deal also includes rescinding some unused American Rescue Plan Act (ARPA) funds. The big question is: how could that impact the money local governments and other entities in Wisconsin have received?

The offices of the Governor, the Mayor of Milwaukee, and the Milwaukee County Executive all tell TMJ4 that the funding their administrations have received will not be taken away.

The ARPA money distributed to those administrations is part of the State and Local Fiscal Recovery Funds (SLFR). SLFR is one of many ARPA fund categories.

NPR obtained a document from the White House that was sent to Congressional Democrats. The document lists some of the federal agencies that will see ARPA funds rescinded if the deal is passed, including the Department of Transportation, the Department of Health, Human Services and the Department of Education, and the Small Business Administration.

It's unclear if the Wisconsin counterparts to those federal departments will be impacted.

TMJ4 reached out to Rep. Scott Fitzgerald's office and Rep. Gwen Moore's office for more clarity.

Rep. Moore's office told TMJ4 in an email "State and local funds from ARPA will not be impacted, no will transit funds."

Moore's office said it was only aware of $11 million in highway funds that could be rescinded.

Rep. Fitzgerald did not get back to us before this writing.


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