Toledo Recognized as Leader in Equitable ARPA Spending

COLUMBUS — A new multiyear study conducted by the Institute on Race, Power and Political Economy (the Institute) at The New School identified Toledo as a leader in investing federal funds from the American Rescue Plan Act (ARPA) of 2021 to advance equity. Toledo scored in the top third of 170 U.S. cities and counties evaluated by the Institute’s Budget Equity Project, which examined how local governments across the U.S. are investing flexible recovery funds from ARPA to support racial and economic equity in their communities.

“While serving on Toledo City Council as an at-large member I was immensely proud to lead the charge on abolishing $230 million in medical debt for more 100,000 people in Northwest Ohio. This project, among many other ARPA funded services, has now been identified as some of the most successful equitable efforts in the nation. I am encouraged to continue these efforts at the state level and deliver real solutions for Ohioans,” said Rep. Grim.

ARPA provided an unprecedented $130 billion in flexible funding for cities and counties to use for COVID-19 pandemic relief and longer-term, transformational investments. For the first time ever, federal recovery funds were guided by the Biden-Harris administration's path-breaking equity policy by targeting resources to the communities of color, Tribal communities, and low-income communities disproportionately negatively impacted by the pandemic and systemic inequities.

The City of Toledo made impactful investments in Community Infrastructure, Community Income, and Housing Security. 47% of the city’s ARPA investments were equity focused. 

The Institute’s ARPA Equity Assessment measured performance across six dimensions of equitable public investment: 1) overall equity focus; 2) application of equity tools and institutional infrastructure; 3) community engagement; 4) use of equitable labor practices; 5) breadth and depth of equity investments; and 6) investment transparency/accountability. The ARPA Equity Assessment of Toledo provides an overview of local ARPA investments and a detailed performance assessment across the key dimensions.

In addition to its assessments, the Institute conducted a broader environmental scan of local ARPA spending, including case study research on ARPA investments that were particularly innovative, community-driven, targeted to historically underserved or marginalized groups, or potentially transformational. Toledo’s investments were documented via a case study of their medical debt elimination project. The first ever city to dedicate ARPA funds to medical debt abolishment, a total of $230 million in medical debt relieved for over 100,000 people in Northwest Ohio.

The Budget Equity Project’s full findings are detailed in the new report, Advancing Equity with the American Rescue Plan’s Local Recovery Funds, and a comprehensive database including 170 city and county ARPA Equity Assessments, more than 40 case studies, additional policy briefs, and more. Led by economist Dr. Darrick Hamilton, the Henry Cohen Professor of Economics and Urban Policy at The New School, the Institute on Race, Power and Political Economy is a leading center for research to understand structural inequalities and identify groundbreaking ways to promote equity. 

“The distribution of flexible ARPA recovery funds was part of an unprecedented fiscal response that included some direct investment in the productivity and wellbeing of the American people with some emphasis on historically excluded and disinvested communities,” said Dr. Darrick Hamilton, founding director of the Institute. “The Institute’s Budget Equity Project offers an extensive first look at how local governments are putting ARPA recovery dollars to work in diverse and innovative ways to advance equity and racial inclusion.”

“Our study shows the positive impact and ripple effects of flexible federal recovery funds when anchored by clear equity guidelines,” said Sarah Treuhaft, director of policy and partnerships at the Institute, head of the Budget Equity Project, and report co-author. “Leading cities are demonstrating that centering equity throughout the process and engaging with the most-impacted communities results in investments that drive transformative change.”