Terre Haute slated to receive $38M, Vigo $20M in new COVID aid

Mar. 13—Indiana is slated to get an estimated $5.8 billion from the $1.9 trillion included in the American Rescue Plan Act that President Joe Biden signed into law Thursday.

More than $3 billion would go to the state, with counties receiving an estimated $1.3 billion and metropolitan cities about $853 million and towns about $435 million, according to Feb. 16 estimates from the federal House Committee on Oversight and Reform. Another $202 million would go into the state capital project fund.

Terre Haute is slated to receive an estimated $38.23 million and Vigo County an estimated $20.76 million.

In the three towns in Vigo County, West Terre Haute would get an estimated $460,000; Seelyville $210,000; and Riley $50,00.

Terre Haute Mayor Duke Bennett said it's too early to know exactly where the funds can be spent.

"We don't have specific guidance on what it can be spent on yet. There are some things in the bill, but once we get those rules, we will put a plan together," Bennett said.

The mayor said the federal funds must be spent by 2024.

"We know there are some categories, some buckets if you will, for the funds," Bennett said.

Those categories include replacement revenue as well as "some infrastructure. Also water, wastewater and broadband and COVID-19 expenses in general that haven't been covered by any other funds," the mayor said. "Those are the big buckets, but no specifics about what all you can include in those categories and what you cannot," the mayor said.

"We don't know when we will get the money. And we don't know how the money will be distributed, whether in different pieces, if you will. I don't think it will come all at once," Bennett said.

The mayor said the city is likely to have COVID-19 expenses through 2022 due to a loss of local income tax during the pandemic.

"Our expenses will continue on until the next year or two, so it is hard to pinpoint the exact use of those funds. But, the first purpose will be to replace our lost revenue," the mayor said. "I am sure of that."

Bennett said he would prefer to target money on infrastructure.

"I am hopeful the rules have some flexibility in them," the mayor said.

Aaron Loudermilk, president of the Vigo County Council, echoed the city, saying the Council will have to review what funds are actually eligible to the county.

"Certainly any funds that are available from the federal government are always good when they go back to locals to help offset some of the expenses," Loudermilk said. "I just don't know that looks like at this point."

In a look at other Wabash Valley counties and cities, a breakdown of estimated funding includes:

—Clay County at $5.09 million, with the city of Brazil at $1.67 million.

—Parke County at $3.28 million, with the city of Rockville at $520,000.

—Vermillion County at $3.01 million, with the city of Clinton at $980,000.

—Sullivan County at $4.01 million, with the city of Sullivan at $850,000.

Reporter Howard Greninger can be reached 812-231-4204 or howard.greninger@tribstar.com. Follow on Twitter@TribStarHoward.