City of Winona Adopts Resolution to Accept American Rescue Act Funding, Awaiting Further Guidance from Feds

WINONA, Minn. (KWNO)-The Winona City Council unanimously adopted a resolution Tuesday to accept grant funding from the American Rescue Act.

The act, which was signed into law by President Joe Biden in March of this year, tasks states to distribute grants to local governments to help them recoup COVID-related financial losses. Despite adopting the resolution, the city will wait for more spending guidance from the federal government before deciding where the money is spent.

“We’ll need to bring it back to council because there will be some choices that need to be made. We still don’t have clarity on what the money can be used for,” said City Manager Steve Sarvi.

The city has some vague guidelines on areas the funding can go towards. They are:

To respond to the COVID-19 public health emergency or its negative economic impacts;
To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to such eligible workers of the recipient, or by providing grants to eligible employers that have eligible workers who performed essential work;
For the provision of government services, to the extent of the reduction in revenue of such recipient due to the COVID-19 public health emergency, relative to revenues collected in the most recent full fiscal year of the recipient prior to the emergency; and
To make necessary investments in water, sewer, or broadband infrastructure.

The state of Minnesota will determine Winona’s allocation. The funding is required to be used by December 31 of 2026.