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Watch: Mayor Duggan outlines possible uses for millions in American Rescue Plan funds

Detroit skyline
Posted at 4:11 PM, May 25, 2021
and last updated 2021-05-25 21:44:11-04

DETROIT (WXYZ) — The city of Detroit is set to receive millions in federal aid through the Biden administration's American Rescue Plan Act. On Tuesday evening, Detroit Mayor Mike Duggan outlined how he would like to see the funds spread across city programs, but also opened up the discussion to the community for residents to weigh in.

In total, $826 million is coming to Detroit over a three-year period, with $413 million first being released in May. The next $413 payment will be released May 2022. All funds must be used by 2024.

The money must be invested in new programs and services for residents, and cannot be used for pension fund payments, paying off city debt or paying past legal obligations.

New initiatives addressing the impacts of COVID will be funded by the Detroit Future fund.

Duggan said that $400 million of the aid will be set aside as a cushion against layoffs or reductions in the city over the next three years, leaving $426 million to be used for the Detroit Future fund.

During the mayor's discussion, he proposed splitting $426 million of the Detroit Future Fund among six programs. That breakdown is as follows:

1. Fight Intergenerationl Poverty $100M
2. Restore Neighborhoods $100M
3. Parks, Recreation & Cultural facilities $100M
4. Improve Public Safety $50M
5. Reduce Digital Divide $50M
6. Small Business Assistance $26M

Over the next 25 days, Duggan will host 25 meetings with stakeholders in the community to hear input on how the funds could best be utilized.