American Rescue Plan Resource Center: U.S. Department of the Treasury

This new law provides the largest amount of direct federal aid ever to local governments. A total of $130.2 billion will be provided to cities and counties to use through December 31, 2024. The program will be administered by the U.S. Treasury Department.

Key provisions include:

• Funding:​ Local governments will receive $130.2 billion (half cities/half counties). Cities will receive $65.1 billion, roughly 19 times the annual Community Development Block Grant (CDBG) allocation, although this money is NOT CDBG – it is a totally new program.
• Allocation Structure:​ CDBG entitlement municipalities will receive funding based on the CDBG formula. Non-entitlement municipalities will receive funding based on their relative population as compared to other non-entitlement communities in their state, which will be administered by the state as an automatic pass-through.
• Two-Year Funding:​ Half of a city’s allocation will be distributed to the city in 2021, and the second half in 2022. However, cities will have until December 31, 2024 to use these funds.
• Timing of Receipt of Funds:​ Entitlement cities will receive their funds within 60 days of the date of enactment. States will receive their funds to distribute to non-entitlement cities within 60 days of the date of enactment, which they then must distribute to non-entitlement cities within 30 days (although the state may apply for two additional 30-day extensions, but only under strict requirements).
• Eligible Uses:​ Eligible use of funds include the following. USCM will work with the Treasury Department to develop regulations to provide further guidance on these “use of funds”.

“USE OF FUNDS—Subject to paragraph (2), and except as provided in paragraphs (3) and (4), a metropolitan city, non-entitlement unit of local government, or county shall only use the funds provided under a payment made under this section to cover costs incurred by the metropolitan city, non-entitlement unit of local government, or county, by December 31, 2024.

“(A) to respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19) or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;

‘‘(B) to respond to workers performing essential work during the COVID–19 public health emergency by providing premium pay to eligible workers of the metropolitan city, non-entitlement unit of local government, or county that are performing such essential work, or by 22 providing grants to eligible employers that have 23 eligible workers who perform essential work;

‘‘(C) for the provision of government services to the extent of the reduction in revenue of such metropolitan city, non-entitlement unit of 2 local government, or county due to the COVID– 3 public health emergency relative to revenues collected in the most recent full fiscal year of the metropolitan city, non-entitlement unit of local government, or county prior to the emergency;

‘‘(D) to make necessary investments in water, sewer, or broadband infrastructure.”

• Treasury Resources Page – State and Local Fiscal Recovery Funds
• Final Rule
• Overview of the Final Rule
• Final Rule FAQs
• Interim Final Rule
• Interim Final Rule FAQs 
• Non-Entitlement Units of Local Government
• Compliance and Reporting Guidance
• Assistance Listing
• IRS FAQs on Taxing CSLFRF funds
• USCM Report on Equity and ARPA/SLFRF Implementation
• USCM Report on ARPA/SLFRF Programs in 105 U.S. Cities

September 1st, 2023: Treasury has released additional information on UEI number requirements for SLFRF subrecipients. Click here to view. 

August 10th, 2023: Treasury has released its interim final rule on SLFRF flexibility for infrastructure projects, emergency relief from natural disasters, and supporting community development. Cities will have a 60-day period to provide public comment as Treasury develops its final rule.

November 10th, 2022: Treasury has released new reporting data on how recipients obligated and spent their SLFRF funds as of June 30, 2022. Click here to view an analysis from Treasury.

July 27th, 2022: The U.S. Department of the Treasury has released updated FAQs to the SLFRF Final Rule, which include new guidance (2.14 and 4.9) on affordable housing development. The guidance takes two additional steps: (1) increasing flexibility to use SLFRF to fully finance long-term affordable housing loans and (2) expanding presumptively eligible affordable housing uses to further maximize the availability of SLFRF funds for affordable housing. Click here for the updated FAQs. Treasury has also worked with the Department of Housing and Urban Development to publish a How-to Guide for Affordable Housing.

July 1st, 2022: The U.S. Department of the Treasury has released the SLFRF Project and Expenditure Report User Guide along with the Recovery Plan User Guide. Both items are due July 31, 2022. The Project and Expenditure Report User Guide includes a Frequently Asked Questions section to address common reporting concerns.

June 3rd, 2022: The U.S. Conference of Mayors, in collaboration with the Kresge Foundation, has released a new report on cities using SLFRF funds to promote equity. Click here for the report.

April 27th, 2022: The U.S. Department of the Treasury has released updated FAQs for the SLFRF program. Click here to view.

April 22nd, 2022: April 30th, 2022 is the deadline for ARPA SLFRF Reporting. The U.S. Conference of Mayors has provided an update on the April reporting deadline with FAQs from the U.S. Department of the Treasury. Click here to view the USCM update.

April 21st, 2022: The U.S. Department of the Treasury has released guidance for local governments on the second tranche of SLFRF funding. Click the link here to view the guidance for local governments.

March 10th, 2022: The U.S. Conference of Mayors has released a new survey of mayors that shows how critical SLFRF relief funds from the American Rescue Plan Act (ARPA) are being put to use in American cities. Click here to view the survey report. 

January 18th, 2022: The U.S Department of the Treasury has released slides and video from its recent webinar on the recent release of its Final Rule for the State and Local Fiscal Recovery Funds. Click here for the webinar slides and click here for the video. 

January 6th, 2022: The U.S Department of the Treasury has released its Final Rule governing the State and Local Fiscal Recovery Fund (SLFRF), which provides $65.1 billion to All Cities under the American Rescue Plan Act.

• The Final Rule can be found here.
• The Overview of the Final Rule can be accessed here.
• Treasury’s full press release on the Final Rule can be found here.

Treasury will hold a series of webinars to describe the Final Rule and its major changes from the Interim Final Rule. The dates and registration links for these webinars (which are identical in content) are as follows:

• January 7, 2022 at 1:00pm ET. Register here. This webinar will be recorded and shared within a few business days.
• January 10, 2022 at 4:00pm ET. Register here.
• January 12, 2022 at 1:00pm ET. Register here.

December 14th, 2021: Treasury has released the online Portal that NEUs who have requested funding from their state will use for reporting and compliance. Click here for more information.

November 19th, 2021: IRS Releases FAQs for states and local governments on taxability and reporting of payments from Coronavirus State and Local Fiscal Recovery Funds. Click here to view. 

August 2nd, 2021: Bloomberg’s e311 Program will host a virtual workshop on federal assistance compliance on Monday, August 2nd, at 2:00pm ET. Please click here for more information on how to participate.  Click here for slides that outline the e311 Program.

July 22nd, 2021: The U.S. Department of Commerce has announced two new competitive grant programs available to local governments to promote local economic growth and development. These are being administered by Commerce’s Economic Development Administration (EDA). These grant programs include:

1. The Build Back Better Regional Challenge (Click here for more information)
   The $1 billion Build Back Better Regional Challenge will provide a transformational investment to 20-30 regions across the country that want to revitalize their economies.
2. The Good Jobs Challenge (Click here for more information)
   Through the Good Jobs Challenge, EDA is allocating $500 million to collaborative skills training systems and programs. Funds may also be used to provide wrap-around services for trainees.

July 19th, 2021: The U.S. Department of the Treasury has issued updated FAQs for its Coronavirus State and Local Fiscal Recovery Funds program. There is a single update to FAQ number 1.4 on page 2. Please click here for most recent FAQs.

June 28th, 2021: The U.S. Conference of Mayors has submitted its full public comments to Treasury regarding the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule. Click here to view the Conference of Mayors’ full public comments.

June 23rd, 2021: The U.S. Department of the Treasury has released its latest round of Frequently Asked Questions for the Coronavirus State and Local Fiscal Recovery Funds. These additional FAQs relate to assistance to small businesses, improvement of outdoor spaces (such as parks), crime prevention and response, and more. The new FAQs are dated 6/23/2021. Click here to view the updated FAQs.

June 17th, 2021: The U.S. Department of the Treasury has released new guidance on Recipient Compliance and Reporting Responsibilities for the State and Local Fiscal Recovery Funds Program. Click here to view.

June 17th, 2021: The U.S. Department of the Treasury has released its latest round of Frequently Asked Questions for the Coronavirus State and Local Fiscal Recovery Funds. These additional FAQs relate to broadband development, and are dated 6/17/2021. Click here to view the updated FAQs.

June 15th, 2021: The U.S. Conference of Mayors, the City of Boston, Chicago, Los Angeles, Montgomery County (MD), and the TCCFUI have submitted joint public comments to Treasury related to the broadband infrastructure provisions outlined in the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule. Click here to view the broadband infrastructure public comments.

June 8th, 2021: Today, the U.S. Department of the Treasury released its latest round of Frequently Asked Questions for the Coronavirus State and Local Fiscal Recovery Funds.