American Rescue Act Funds for Food Insecurity and Broadband

Sep 22, 2021

Twenty-five million dollars from city's American Rescue Plan Act funding is going towards food insecurity/ hunger as well as eliminating the digital divide after council approved the awards at its recent meeting (9/20).

The Greater Cleveland Food Bank is receiving $5 million to financially assist with the food banks’ capital improvements at its new center on Coit Road and its existing facility on South Waterloo Road. The food bank is expanding to be able to serve more people.

The food bank served more than 100,000 new people last year. In total, more than 400,000 people received food - almost half of whom were Cleveland residents. Council members discussed the possibility of awarding the food bank additional money in the future.

Council also approved setting aside $20 million for broadband towards developing a city-wide network, though additional funds from other sources are needed. The U.S. Treasury has announced additional funding Cleveland and others will compete for specifically for infrastructure programs, that including broadband. 

The city recently received an additional $16 million - above the nearly $512 they were awarded - specifically for rental assistance and housing issues.

Cleveland has the highest percentage of households without broadband internet accounts of any U.S. city with 100,000 or more households, according to 2019 data released by the U.S. Census’ American Community Survey. Nearly 80,000 Cleveland households reported not having a wireline broadband connection (cable, fiber optic or DSL). Additionally, almost 53,000 households — 31% of the city’s total — lacked broadband subscriptions at any speed, including mobile data plans.

The Covid-19 emergency has highlighted the importance of universally available, high speed, reliable and affordable broadband coverage. People rely on the internet to participate in a variety of activities, including remote education classes, healthcare and employment, down to ordering food or getting tickets for entertainment activities.

Efforts are underway in parts of the city to alleviate this problem, though right now it's piecemeal approach. Council plans to establishe with the administration a wide-ranging plan that ultimately will ensure all residents throughout the city have reliable, affordable internet services.

The US Treasury has set up guidelines for how the ARPA funds can be used, the first use they approved was for states and municipalities to respond to "negative economic impacts" and "budget shortfalls" because of the pandemic. 

Of the nearly $512 million the city is receiving over two years in ARPA funds, at least $110 million is going to recovering revenue the city lost in 2020. The city will need to recover losses for 2021, as well.

All the ARPA money be obligated (contracted for) by Dec. 31, 2024 and fully spent by Dec. 31, 2026 or must be returned.

Ord. No. 681-2021 (food bank) and Ord. No. 691-2021 (broadband)