Mayor Kelly announces American Rescue Plan spending

CHATTANOOGA (WDEF) – Mayor Tim Kelly has announced how he wants to spend federal American Rescue Plan funds.

Chattanooga is getting $30 million.

Mayor Kelly wants to use it to invest in 36 local initiatives that he ways should spur economic growth and close gaps in public health and education.

Here is his breakdown:

● $5.8M to increase availability of affordable homes, creating more than 230 new
affordable rental units
● $5.3M toward preventing homelessness and supporting the transition to permanent
housing
● $1.6M to preserve existing affordable housing, helping keep families in their homes even
as property values rise
● $5.9M toward workforce development initiatives that help provide direct pathways to
stable careers
● $2.9M to expand access to resources for minority business owners and entrepreneurs,
helping close long-standing opportunity gaps
● $3.7M for public safety and youth mentorship initiatives to empower young people and
make Chattanooga safer for all residents
● $1.2M to improve access to mental health care, while also helping expand and diversify
the city’s mental health workforce
● $3.6M to expand the city’s early learning system for families and children who need it
most

The City Council will have to approve the plan on July 26.

“Chattanooga suffers from long-standing social and economic inequalities, driven by the
ongoing disinvestment and neglect of some of our most vulnerable neighborhoods,” said Mayor
Kelly. “While it will take much more than $30 million to solve these deep-rooted issues, this
investment represents an enormous step forward in removing the persistent barriers that have
created and sustained inequities in Chattanooga for far too long, especially among the Black
community.”

The community got a chance to submit applications for the funding, which the Mayor says created quite a competition.

“This was a highly competitive process that demonstrated the incredible passion and will of our community to make Chattanooga a better place,” continued Mayor Kelly. “I deeply appreciate our non-profit community who stepped up to solve our most pressing problems and only wish we had more funds available for distribution.”