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How State and Local Governments Can Use Recent Influx of Coronavirus Recovery Funds under the ARPA

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On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law. The Act will provide a total of $350 billion in Coronavirus State and Local Fiscal Recovery Funds (Fiscal Recovery Funds) to help eligible state, local and tribal governments continue to respond to the COVID-19 pandemic and its economic impact.
9 minute read
July 27, 2021

On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law. The Act will provide a total of $350 billion in Coronavirus State and Local Fiscal Recovery Funds (Fiscal Recovery Funds) to help eligible state, local and tribal governments continue to respond to the COVID-19 pandemic and its economic impact.

So far, the Treasury Department reports that it has distributed $194 billion. Cities and municipalities are using the funds in a variety of ways, including funding for the homeless, improving broadband access and making other infrastructure investments.

Local governments should expect to receive funds in two tranches with 50% having been received in May 2021 and the balance to be delivered 12 months later.

These funds have four categories of eligible uses:

Within these overall categories, the Treasury’s Interim Final Rule provides guidance for determining the types of programs and services that the funds can be used to support, along with examples of allowable uses.

 

For detailed information, including steps to apply for funding, visit the U.S. Treasury website. If you have questions about ARPA funds and reporting requirements, contact us. We are here to help.

© 2021