On March 11th, President Biden signed into law the latest COVID-19 relief package, known as the American Rescue Plan. The sweeping $1.9 trillion bill contains billions of dollars in aid to state and local governments, additional stimulus payments for certain workers, additional COVID-19 testing, and vaccine funding along with specific aid to local restaurants. In total, Arizona is expected to receive over $24.5 billion in aid. The Chamber urges recipients of this aid to be transparent as possible in the use and allocation of this massive funding infusion.

One provision of the act may make enacting meaningful tax reform a little more difficult this session, although lawmakers don’t see it as insurmountable. A restriction was placed on recovery funds being used to directly or indirectly to offset tax reductions. This vague provision requires clarification U.S. Treasury Department as guidance will be imperative to the Arizona Legislature as they work in earnest to enact a FY 2022 state budget. Be sure to stay connected to the GPC for the latest updates.

Posted by Annelise Patterson