The money is from the American Rescue Plan Act (ARPA), aimed at helping the city with the economic fallout from the pandemic.
"There's a series of ten questions all focused around what the ARPA requirements are, and we'll be asking the community to either rank areas of importance or to provide us feedback on areas for investment," said Merced city manager Stephanie Dietz.
The city has put together a survey, which will be mailed to residents starting Thursday.
You can also find the survey on the City of Merced's website.
The city council will ultimately decide how the funds should be spent.
But some suggestions have included more money for homeless services and the city's new navigation center, funding for COVID-19 vaccines and reconstruction.