Cities and state still sorting out what to do with the extra funds from the American Rescue Plan

YANKTON, S.D.(WNAX)- Another round of hundreds of millions of federal dollars will be heading to the state under the “American Rescue Plan” passed by Congress earlier this year.

There are lots of rules involved with using the federal money and Brian McGinnis, a Community Development Specialist with Planning and Development District Three in Yankton is working with local governments to figure it all out.

McGinnis says most cities are left out of the direct grants.

McGinnis says local governments should hold the money and wait a while before they spend it.

Half the money comes this year, the other half next year and local governments have until 2026 to spend it all.