Harrisburg, Pa. – May 12, 2021 Today, Pennsylvania Senate Democrats unveiled the “New Deal for PA” – a $6.15 billion investment of federal funds coming to the Commonwealth pursuant to the American Rescue Plan. 

“My Senate democratic colleagues and I today announced our plan to help Pennsylvania recover economically from the COVID-19 pandemic. The New Deal for PA focuses on three major topics: Jobs, Opportunity and Equity,” Schwank said. “It’s going to take time to bring us back to “normal,” but this plan starts us on the right foot.”

The New Deal for PA focuses on Jobs, Opportunity, and Equity with the following breakdown:

People — $2.470 billion
21st Century Child Care
Business Assistance
Education/Community Supports
Job Training/Workforce Development
Utility Assistance

Projects — $2.493 billion
Economic Development

Public Health — $1.185 billion
Public Health Equity/Vaccine Confidence
Rewarding Frontline Worker Service

By making targeted investments in people, projects, and public health, we can use this once-in-a-lifetime infusion of federal funds into PA to make positive, long-lasting improvements that will lay the foundation to create transformative change across the Commonwealth. 

The New Deal for PA uses a data-driven approach to respond to what we learned during the pandemic. 

The caucus looked at the current situation to determine where financial assistance is still necessary to help individuals, families, and small business recover from the devastating impacts of the pandemic. Then, the caucus looked ahead and assessed how to best invest ARP funds to ensure that we come out of the pandemic better than we went in and build resiliency across the commonwealth in preparation for the next crisis.

Finally, the caucus compared its proposal with the U.S. Treasury guidance released on May 10, 2021, to ensure we are on solid footing in using the funds as we propose. 

Federal guidance on allowable uses of the funds coming to Pennsylvania from the American Rescue Plan’s (“ARP”) State Fiscal Relief Fund was released on May 10, 2021. Pennsylvania will receive approximately $7.3 billion in flexible funding from the State Fiscal Relief Fund.  Senate Democrats believe it is time to begin the conversation on investing these funds so we can allocate the monies with the FY 2021-2022 budget

The Senate Democrats’ proposal distributes $6.05 billion from the following sources:

State Fiscal Relief Fund — $4,797,500,000
Capital Projects Fund — $280,000,000
ESSER Fund — $505,000,000
Emergency Assistance for Nonpublic Schools — $150,000,000
Pandemic Response Fund — $25,000,000
Other Funds — $55,000,000
Local Matching Funds — $335,000,000

Counties and municipalities will receive approximately $6.1 billion from the American Rescue Plan’s Local Fiscal Relief Fund and school districts will receive approximately $4.5 billion from the ESSER Fund.  If these local government units take advantage of these programs, state matching funds will average approximately $4 for every $1 of local funding. 

The Senate Democratic Caucus plan targets investments to craft a just recovery so Pennsylvania can Build Back Better.

More information on the plan can be found at PASenate.com/NewDeal