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Posted on: March 11, 2021

Anaheim set to receive $100 million in federal assistance

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ANAHEIM, Calif. (March 11, 2021) — Anaheim is set to receive more than $100 million in direct federal aid to help offset lost revenue due to COVID-19 and continue serving residents, businesses and visitors.

The funding comes from the American Rescue Plan Act, signed by President Joe Biden on March 11 and that provides $130 billion to city and county governments as well as $1,400 directly to many residents.

 Funding for Anaheim, estimated to come in at about $107 million, will be provided to the city in two payments, the first in 60 days and the second in a year from now.

 Anaheim can use the funds to offset revenue loss due to the pandemic, which will help fill part of a budget deficit and allow the city to provide essential services to the community.

 The prolonged and ongoing coronavirus economic downturn has created a $114 million city budget deficit.

Anaheim’s theme parks, convention center and sports and entertainment venues have been closed for a year, drastically impacting city revenue from hotel stays and visitor spending, Anaheim’s largest source of funding for public safety and community services.

In addition to federal aid, Anaheim is evaluating borrowing as well as more cost cutting to close the budget gap. Any potential borrowing could address the city’s current budget deficit through June and a $71.5 million shortfall projected for the following fiscal year as well.

The City Council will hear a budget update and provide direction on potential borrowing in coming weeks.

More on the city’s budget discussions here.

Find regular updates on coronavirus at Anaheim.net/coronavirus

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