Mississippi Gov. Tate Reeves has signed a bill aimed at preventing the loss of nearly $306 million in federal infrastructure funds from the American Rescue Plan Act. The funds, allocated in 2022, include $423 million for water and sewer grants for cities and counties and $385 million for rural water associations.
The federal government requires all grant money to be spent by Dec. 31. As of early February, a significant portion of the funds remained unspent, with only 56% of city and county grants and 69% of rural water grants used, according to state agencies. The Mississippi Department of Environmental Quality oversees the city and county grants, while the Mississippi Department of Health manages rural water projects.
To address the looming deadline, House Bill 1571, signed into law Monday, moves the deadline up and sets a timeline for redirecting unspent funds. Between Sept. 30 and Oct. 15, the state intends to allocate the remaining money to three areas: $100 million for Mississippi Department of Transportation projects, up to $63 million for a state health and life insurance fund, and any remaining funds at the governor’s discretion, following federal guidelines.
The Mississippi Department of Finance and Administration will report by Oct. 30 on how the funds are distributed and what remains. State officials say this approach maximizes the use of federal funds and minimizes the risk of having to return money to Washington, according to Sen. Bart Williams, a Starkville Republican and co-author of the legislation.
Some local officials say their projects are still ongoing and expect to complete them before the new deadline. Harrison County, which has millions in unspent funds, has delays due to project billing and permits, but county engineer Jaclyn Turner said all projects should be finished in time. Other cities, including Gulfport and Jackson, expressed confidence they will meet the deadline. Experts note that limited well-drilling capacity may pose challenges for some rural water projects. Local entities have until the end of August to request reimbursements for their ARPA projects.
