On November 29, AGC, along with 18 other organizations, sent a letter to U.S. Treasury Secretary Janet Yellen asking her department to clarify that American Rescue Plan Act (ARPA) funds can be used by state and local governments to mitigate the effects of material and supply chain delays and shortages.

This would include, but would not be limited to, materials, products, and equipment price increases and the effects they are having on project costs. Recent member surveys from AGC and other stakeholder organizations confirmed that material prices are and will continue to increase into 2022. As the stated purpose of state and local government funding in the ARPA is to “mitigate the fiscal effects stemming from the public health emergency with respect to Coronavirus Disease (COVID-19),” the pandemic-induced supply chain delays and shortages certainly fall within congressional intent of the legislation.