July 14, 2022

White House Summit on the American Rescue Plan: More than $40 Billion Committed to Strengthening Our Workforce

BY LeadingAge

On Wednesday, July 13, 2022, LeadingAge participated virtually in the “White House Summit on the American Rescue Plan and the Workforce” hosted by Vice President Kamala Harris. The event, co-hosted by the White House American Rescue Plan Implementation Team and the White House Office of Intergovernmental Affairs, featured state and local leaders from across the country and announced how over $40 Billion in American Rescue Plan (ARP) fund investments have been committed to strengthening our workforce. The Summit highlighted ARP investments across the areas of “care and public health, expanding access to the workforce for underserved populations and expanding the workforce.” A White House Fact Sheet provides the official Summit highlights and an overview of the initiatives that panelist highlighted during their remarks.

Opening remarks were provided by Vice President Harris, Labor Secretary Marty Walsh, Senior Advisor to the President and White House American Rescue Plan Coordinator Gene Sperling, and Senior Advisor to the President and Director of the White House Office of Intergovernmental Affairs Julie Rodriguez. Each noted the significant investment the Biden Administration is making to strengthen and expand our workforce.

ARP Health Care Worker Funding. On March 11, 2021, President Biden signed the ARP into law — a sweeping $1.9 trillion COVID-19 relief package. The ARP provided states with over $9 Billion of Home and Community Based Services (HCBS) funds, proposed specifically for workforce activities. States were given an opportunity to receive a 10 percent increase in the federal medical assistance program (FMAP) for Medicaid HCBS, from April 1, 2021, through March 30, 2022. All states have taken advantage of the FMAP increase; these funds could be used to increase the level of state HCBS spending, expand the direct care workforce, raise worker compensation, and engage in worker recruitments and retention.

Over $16 Billion in ARP funds was also allocated for the Department of Health and Human Services (HHS) funds for the “care and healthcare workforce.” Additionally, over $12 Billion in funds was allocated to strengthen the K-12 educator workforce and expand workforce credentials.

State and Local Leaders Workforce Investments Panel. The Summit also highlighted state use of ARP funds for workforce investments. North Carolina Governor Roy Cooper said his state has committed ARP funds to address the barriers holding back workers and expand opportunities for careers in high-growth fields offering good wages, and they make investments to increase compensation for care economy workers and establish and expand work-based learning opportunities in critical sectors. To improve recruitment and retention in care fields, the state is also leveraging ARP Child Care Stabilization program grants to incentivize and fund increased compensation for tens of thousands of childcare workers in the state. Over $200 Million annually is being utilized for ARP-enhanced HCBS funding to increase wages for direct care workers. North Carolina is also using ARP resources to establish a new Direct Care Jobs Innovation Fund that will support initiatives that improve recruitment and retention among the direct care workforce, including training opportunities and workforce supports.

Furthermore, Pennsylvania Governor Tom Wolf described how his state is delivering support to its care and healthcare workforce with ARP funds. Governor Wolf discussed how the state is investing in expanded training and credentialing opportunities for direct care workers across the state, improving retention and quality of care. Using ARP enhanced HCBS funds, these initiatives include increasing behavioral health provider rates to support state staff training, education, and recruitment, as well as creating an online education and training portal to strengthen supports to nursing professionals. The state is also delivering $225 Million statewide for healthcare retention and recruitment efforts, including payments to direct care staff as well as expanding a high-demand nurse loan forgiveness program. In addition, the state is providing nearly $190 Million through the ARP to support retention bonuses, personnel development, and recruitment efforts for its childcare workforce.

Pennsylvania and North Carolina’s use of ARP funds reflect many of LeadingAge’s workforce solution goals, including improving pay and benefits, investing in career pathways for strengthened recruitment and retention efforts, and acknowledging the critical role that training has in rebuilding the nation’s aging services workforce.

Care and the Public Health Workforce Panel. A Summit panel addressed the “care and public health workforce,” featuring Administrator of the Health Resources and Services Administration Carole Johnson, and panelists spoke about the efforts of ARP dollars, and their innovative investments in a care economy, and investments in the community workforce.

Erie County, New York, County Executive Mark Poloncar, spoke about their county-level efforts that replicated the Health Professions Opportunity Grants Program (HPOG), administered nationally by the Administration for Children and Families. Erie County’s program used $1.6 Million in ARP funds to launch the Healthcare Careers Program, which provides the county with grants for training in high-demand healthcare occupations. Since this program began in October 2021, more than 320 residents are enrolled in the program which also ensures that they receive a transportation allowance, childcare assistance and have access to an emergency fund up to $500 for emergencies. LeadingAge supports the HPOG program and advocates for its expansion.

SEIU Secretary-Treasurer April Verrett spoke about how ARP funding for HCBS continues to improve conditions for home care workers, who are 90 percent women and disproportionately women of color, have helped stabilize and grow the home care workforce and expand access to high-quality affordable home and community-based care. Ms. Verrett also emphasized the funding has helped to provide adequate payment rates and allowed these workers to unionize, but more “non-time limited” resources are needed.

At the conclusion of the panel, White House American Rescue Plan Coordinator Gene Sperling shared Vice President Harris’ interest in convening a separate follow up session on care workers and public health workers to further explore working on equity and disparities, mental health and the disabled. LeadingAge will be sure to keep members posted on any additional White House workforce events.