Leaders in the Mississippi Legislature are studying the American Rescue Plan, which provides $1.78 billion to the state, to see where money will be appropriated in the 2022 session. Within the $1.8 billion that is going to the Mississippi Legislature, $369 million will be given to both large and small cities, including $268 million that will be split among cities and towns with less than 50,000 and $578 million will be distributed to counties.
The funds the state receives could be included in the state budget that legislators are working on now ahead of January. Decision on where this money goes could have a major impact on Mississippi. The first half of the $1.8 billion coming into the state of Mississippi has been received. This funding has relatively few restrictions, though it does have to be spent by 2024. Municipalities and counties will receive a package that includes over $1-billion.
The Mississippi Sounder has one question. Once the state agencies receive these funds will they adjust to not having them in the future? The idea of handing funds with little restrictions to state and local governments is much like turning a child lose in a toy store. It will be interesting to see how the funds are spent.