Councilors Receive Update on ARPA Funds

Las Cruces City Councilors met in a Work Session Sept. 9, 2024, and received an update from staff on how funds received from the 2021 American Rescue Plan Act have benefited the City.

Leeann DeMouche, the City’s Director of Finance, said Las Cruces received two tranches of $12.4 million each to help the City recover from the negative economic impact caused by the COVID-19 pandemic. DeMouche said funds received by the City must be obligated by Dec. 31, 2024, and spent no later than Dec. 31, 2025.

As of June 30, 2024, the City has spent or obligated 82 percent of the $24,759,826 that was received through ARPA. The City still retains $4,365,328 in ARPA funds that are not yet obligated.

A large portion of the ARPA funds received by the city, approximately $10.4 million, were allocated for capital improvement and water/sewer projects. One of the largest single projects obligated by the City will utilize about $2.2 million in ARPA funds for an infrastructure rebuild at Casa Linda Acres. The neighborhood will see new roadways, sidewalks, lighting, drainage with green infrastructure, gas, water and sewer. The construction on that project is anticipated to begin in November 2024 and should be completed in approximately nine months.

ARPA fund allocations and (percent spent/obligated) include:

• Public Health/Safety: $2 million (81 percent)
• Visit Las Cruces: $1 million (89 percent)
• Premium Pay: $958,500 (100 percent)
• Water/Sewer Projects: $3.5 million (34 percent)
• Capital Projects: $6,888,.670 (97 percent)

The City also distributed more than $9.5 million of ARPA funding to area non-profit organizations to aid in the community’s recovery from the pandemic. Most of the non-profits have spent or obligated 100 percent of their ARPA funds.

Full details of the City’s ARPA funds, projects, expenses, and non-profit partners can be found on the City of Las Cruces website.

President Joe Biden signed the $1.9 trillion American Rescue Plan Act on March 11, 2021. The act is a federal stimulus bill to aid economic recovery from the COVID-19 pandemic.

Las Cruces City Council will next meet in regular session at 1 p.m. Monday, Sept. 16, 2024, at Council Chambers, 700 N. Main St. All City Council Meetings and Work Sessions can be viewed on the City’s YouTube channel.