Council splits over use of remaining $2 million in ARPA; amendment to request portion for tax relief or city projects passes 8–4

The Holyoke City Council debated how to spend the remaining roughly $2 million in American Rescue Plan Act (ARPA) funds on Tuesday, ending with an amended order the council adopted 8–4 requesting the mayor consider using a portion of the funds for tax relief and/or city-sponsored capital projects.

Councilor Jourdain introduced the order, saying the city was not in a position to "give any of this $2,000,000 away" to outside projects while residents faced large tax-bill increases. "We're in no position to be giving any of this 2,000,000 away to anybody," Jourdain said.

The initial motion to send the unamended order to the mayor failed on an earlier roll call. After a motion to reconsider, the council amended the language to ask that the mayor "please use a portion of the remaining $2,000,000 in ARPA funds for tax relief and/or city-sponsored capital projects." That amendment was adopted and the amended order passed 8–4.

Councilors who opposed the measure argued that using ARPA as one-time tax relief creates a long-term budget risk and could create a future funding "bubble" the city would later need to pay. Councilor Rivera said he supported tax relief in principle but worried the approach merely delays structural budget problems: "If we take ARPA funds to cover some of it now, then next year we have to come up with what we didn't pay for now," Rivera said.

Councilors who favored the amended order emphasized that the recommendation would be advisory — the mayor retains legal discretion over ARPA spending — but said the city needed at least to ask the mayor to prioritize residents and city infrastructure. Councilor Devine and others said they wanted neighborhood improvement projects and targeted relief considered.

Mayor (name not specified) responded to the council saying he had heard the concerns and would consider the recommendations. "Passes or not, I got the message loud and clear. I'm listening, and, we'll take anything at all into advisement and consideration," the mayor said.

Why it matters: Council guidance on ARPA spending signals to the mayor and the public what the legislative branch prioritizes for scarce, one-time federal funds. The debate highlighted competing priorities: immediate tax relief versus preserving money for future needs and capital investments.

Ending: The amended order is nonbinding; the mayor retains final authority over ARPA funds but now has a clear, recorded council appeal to consider partial use of remaining ARPA monies for tax relief or city capital projects.