On March 11, 2021, U.S. President Joe Biden signed the American Rescue Plan Act of 2021 (ARPA) into law. ARPA provides local governments with resources through the Coronavirus Local Fiscal Recovery Fund, to respond to the public health emergency caused by the COVID-19 pandemic. The funds are administered by the U.S. Treasury Department, which announced that the City of New Bedford would receive $64,729,754 in ARPA funding.

The U.S. Treasury released ARPA regulations that set forth eligible uses for funding, which include addressing acute pandemic-response needs, filling revenue shortfalls, and supporting communities and populations hit hardest by COVID-19. Revisions to these regulations take effect April 1st, 2022.

ARPA recovery funds provide substantial flexibility for cities to address and meet local community needs. Eligible uses include replacing public sector revenue loss, to provide government services at pre-COVID levels; supporting public health responses and COVID-19 mitigation efforts including medical expenses, behavioral health care, and public health and safety; addressing negative economic impacts, including economic harm to workers, families, small businesses, impacted industries, and the private sector; and supporting water, sewer, and broadband infrastructure.