It’s Tax Day: The most wonderful time of the year, right?

Well, not quite yet, but imagine if our tax dollars were reinvested into our communities in tangible ways: safer streets, well-funded public schools and affordable housing.

In 2021, the American Rescue Plan Act, signed into law by President Joe Biden, helped bring us closer to this vision. ARPA was one of the largest federal investments in communities in decades, marking a shift toward direct investments in households, local governments and frontline services.

ARPA was designed to help the economy recover from the effects of the COVID-19 pandemic by replacing lost revenue and investing in our state’s infrastructure. This was not limited to physical infrastructure but also included public health systems, housing stability and workforce recovery. The law created new possibilities for counties across the state by providing $8 billion in state and local recovery funds across North Carolina.

The bill also directly supported households by providing the third round of stimulus checks, with $1,400 payments to individuals earning less than $75,000, allowing families to cover rent, food costs and other needs during a period of economic instability. ARPA also provided $120 million in assistance to small businesses in North Carolina to help prevent closures and preserve jobs, along with $277 million for capital projects, allowing for infrastructure improvements to public facilities communities rely on every day.

These dollars have had real impacts on our communities. For example, in Fayetteville, elected officials, with input and approval from community members, allocated funding for park and building maintenance, workforce development programs and a housing trust fund for affordable housing. For many residents, these changes translated into more accessible public spaces and employment opportunities.

In Greensboro, thousands of residents shared their priorities for American Rescue Plan funding, helping align investments with community-identified needs. The county was able to direct funding to programs focused on childhood health, economic development and education.

Public dollars should work for the public

Five years later, we can see that when federal tax dollars are reinvested into our communities in concrete ways, the lives of working people improve. While short-term challenges were addressed, this investment also helped create long-term stability and growth. These investments helped keep families in their homes, kept small businesses open and provided essential resources to our communities. The funding also allowed communities to determine how best to meet their own needs.

As policymakers continue to shape the state budget, we have an opportunity to build on the progress communities need to make a difference. The choices lawmakers make help shape what our communities look like moving forward, and we cannot afford to continue patterns of divestment.

It’s important to remember on Tax Day that taxes are more than just what we owe — they are part of how we build our communities together. It is a reminder that public dollars should be used to strengthen our communities, support working families and create opportunities where we all can thrive.

Investments such as ARPA were made possible because of public advocacy and community organizing. When we engage in these processes as a community, we can work together to shift how public dollars are spent and who benefits.

North Carolina Black Alliance joins North Carolina Budget & Tax Center and partners across the state to advocate for increasing affordability, lowering barriers to wealth-building and creating policies that are equitable for Black communities. By investing in people, we can build an economy that works for our communities.