American Rescue Plan Act (ARPA)

The City of Las Cruces (City) received a direct allocation from the U.S. Treasury under the American Rescue Plan Act (ARPA) for the Coronavirus State and Local Fiscal Recovery Funds, which provided a substantial infusion of resources to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery.

The City received the first tranche of funding in the amount of $12,379,913 on May 19, 2021. The second tranche, in the same amount, was received on June 14th, 2022.

The funding is intended to be used for the following funding objectives, as defined in the Act:

To support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control; replace lost public sector revenue to strengthen support for vital public services and help retain jobs; support immediate economic stabilization for households and businesses; and address systemic public health and economic challenges that have contributed to the unequal impact of the pandemic.

Support Public Health Response


To meet and address emergent public health needs, measures to counter the spread of COVID-19, and address disparities in public health exacerbated by the pandemic.

To determine use:  assess effect of COVID-19 on Public Health and how to address identified needs.

Support mitigation/prevention of public health issues and improve the design and execution of public health services.

A Las Cruces Police Department officer smiling and standing in front of a police truck.

Public Safety Programs

Mobile Integrated Health (MIH) - 2 Squad Vehicles$656,667
Fire & Police EMT, Paramedic, CPR Training$368,333
MIH, Mobile Crisis Intervention Team (MCIT) Station Design$365,000
PPE & Emergency Response$210,000
Police Smart Technology$200,000
Police Victim, Community Advocate Vehicles$140,740
Communications for Police Officers$40,000
Police First Responder Kits$19,260
Total Public Safety Programs$2,000,000

Replace Public Sector Revenue Loss


Allows municipalities to calculate the Revenue Loss due to the negative impacts of the COVID-19 pandemic.

Any reduction of revenue is presumed to have been due to the COVID-19 public health emergency.

Provides broad latitude for providing government services.

The City of Las Cruces is using this category as supplemental funding for capital projects that have increased in cost due to the effects of the pandemic.

Aerial shot above a public park.

Capital Projects - Revenue Loss

GO Bond Projects - Park Improvements, New Animal Shelter$4,128,725
New Transit Maintenance Facility$2,759,945
Total Projects$6,888,670

Address Negative Economic Impacts


Provide aid to impacted industries such as tourism, travel, and hospitality that were disproportionately and negatively impacted by the pandemic.

Aid may be considered responsive if it supports businesses, attractions, and business districts.

Visit Las Cruces building.


Cooperative Advertising$500,000
Website, Visual Assets$300,000
Event Revitalization$100,000
Key Programs$90,000
Convention Center Assets$10,000
Total Amount$1,000,000

Improve Water & Sewer Infrastructure


Make necessary investments to improve access to clean drinking water and invest in water and wastewater infrastructure.

Funding guidance provides a framework to align necessary water and sewer infrastructure projects with projects eligible under the EPA's Drinking Water and Clean Water State Revolving Funds.

Car driving by a sewer construction project.

Water & Sewer Infrastructure Projects

Calle del Encanto, Calle del Sol$2,200,000
Sewer Connect Program$1,300,000
Total Projects$3,500,000

Premium Pay for Essential Workers


May be used for payroll expenditures for essential employees to the extent that their services are devoted to mitigating or responding to the COVID public health emergency.

Eligible workers are defined as workers needed to maintain continuity of operations of critical sectors to protect the health and well-being of the residents.

Management made the determination that all employees were essential during the pandemic and were needed to ensure that essential operations were maintained at pre-pandemic levels and continued services were provided to the residents and visitors of Las Cruces.

Two utilities employees looking at a dirt trail.

Premium Pay

City full-time and part-time regular staff hired prior to July 1, 2021 received premium pay.

There were three tiers for premium pay with payments as follows:

Non-Management Staff$750
Administrators, Supervisors$500
Executive Management$250
Total Premium Pay$958,500

Premium pay was a one time payment in October 2021.

Community Grants


Provide grants to community organizations to offset the negative economic impact experienced by community members in Las Cruces.

On May 2, 2022, City Council adopted an eligibility process and guide for community organizations to apply for funding. The process was modified from a procurement process, with guidelines to ensure compliance with federal requirements. 
View Resolution

A scoring committee comprised of six City of Las Cruces employees scored the applicants, and made funding recommendations to City Council.

Funding also covers the administration and oversight of grant contracts. The amount allocated to administrative costs is $478,003.
View Contracts

Learn more about the nonprofit funding here.

Nonprofit staff standing in front of information table.

List of Nonprofits

The following nonprofits were awarded funds on September 6, 2022:

Mesilla Valley Community of Hope$300,000
Community Foundation of Southern NM (UPDATED BELOW)$1,000,000
Community Action Agency of Southern NM$1,700,000
Jardin de Los Niños$350,000
Catholic Charities of Southern NM$550,000
NM Housing & Community Development Corp$2,000,000
Boys & Girls Club of Las Cruces$1,388,000
Cruces Creatives$1,000,000
Mesilla Valley Public Housing Authority$305,853
Total Funding$9,593,853

The Community Foundation of Southern NM project did not work out as expected. City Council adopted a resolution amending the City's American Rescue Plan Act (ARPA) funding priorities and allocations at the December 4, 2023 Council meeting. The re-allocated funding is detailed in the chart below.  

Dona Ana Community College - DACC (Transitional Job Training) $240,000.00
Ngage New Mexico (Childcare Provider Program) $300,000.00
New Mexico Department of Workforce Solutions (Pre-Apprenticeship Program) $100,000.00
Southern New Mexico Independent Electrical Contractors - IEC (Apprenticeship Program)                                      $200,000.00
Mesilla Valley Economic Development Alliance (Manufacturing Training) $100,000.00
Total (Reallocated) Funding  $940,000.00

Storefront Repair Grants

The Small Business Storefront Repair Program allows small businesses to apply for up to $2,500 in grant funding to help repair storefront property that occurred on or after January 1, 2021. These funds will help cover costs to repair current property damage or reimburse business owners for costs paid out of pocket for past damages. Only one application may be submitted per small business/business owner, unless all funds are not expended by February 1, 2024. $400,000 has been allocated for this program.