How Local Governments May Use ARPA Recovery Funds
We finally have more guidance on ways local governments may use their allotted ARPA recovery funds. On May 10, 2021, the United States Treasury adopted a final interim rule and put out a factsheet outlining the different ways eligible local governments can use their fiscal recovery funds from the federal spending package known as the ARPA. The objectives appear to offer local governments a wide latitude on how to apply the funds.
According to the Treasury’s factsheet, the Coronavirus State and Local Fiscal Recovery Funds will deliver $350 Billion for State, Local, Territorial, and Tribal Governments to respond to the COVID-19 emergency and bring back jobs.
With the launch of the Coronavirus State and Local Fiscal Recovery Funds, eligible jurisdictions will be able to access this funding in the coming days to address their needs to:
- Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control;
- Replace lost public sector revenue to strengthen support for vital public services and help retain jobs;
- Support immediate economic stabilization for households and businesses; and
- Address systemic public health and economic challenges that have contributed to the unequal impact of the pandemic on certain populations while providing substantial flexibility for each jurisdiction to meet local needs.
Within these overall categories, the Treasury’s Interim Final Rule provides guidelines and principles for determining the types of programs and services that this funding can support, together with examples of allowable uses that recipients may consider. To learn specifics how you may allot your funding, Go to the Coronavirus State and Local Fiscal Recovery Funds Fact Sheet.