ARP Update from NC League of Municipalities
|The U.S. Treasury issued new information on steps that all municipalities should take prior to receiving funds through the federal American Rescue Plan. They include, if you have not done so already, registering for a federal DUNS number and ensuring that your municipality has an active federal SAM registration. More information on these and other steps, including how to complete them, can be found here. Completing these steps at your earliest convenience will help ensure that there is no delay in receiving the allocation of funds your municipality is eligible for through the ARP. Entitlement cities through the CDBG program are expected to receive funds directly from the federal government by May 11, 2021. Non-entitlement cities should receive funds through the State of N.C. by June 11, 2021. The League and its partners at the National League of Cities are recommending that all cities, regardless of size and CDBG status, complete both the DUNS and the SAM registration processes. Additional guidance from the U.S. Treasury on eligible expenditures of ARP funds is still forthcoming. We expect that guidance to be released prior to May 11. Additional questions related to the ARP can be sent to the League’s ARP email address.|
The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus Package or American Rescue Plan, is a $1.9 trillion economic stimulus bill passed by the 117th United States Congress and signed into law by President Joe Biden on March 11, 2021, to speed up the United States’ recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession.
State and Local Fiscal Recovery Fund
The American Rescue Plan provides $350 billion dollars in emergency funding for state, local, territorial, and Tribal governments to remedy the mismatch between rising costs and falling revenues. This includes:
- $195 billion for states, (a minimum of $500 million for each State);
- $130 billion for local governments (a minimum of $1.25 billion per state is provided by the statute inclusive of the amounts allocated to local governments within the state);
- $20 billion for tribal governments; and
- $4.5 billion for territories
The Rescue Plan will provide needed relief to state, local, and Tribal governments to enable them to continue to support the public health response and lay the foundation for a strong and equitable economic recovery.
In addition to helping these governments address the revenue losses they have experienced as a result of the crisis, it will help them cover the costs incurred due responding to the public health emergency and provide support for recovery – including through assistance to households, small businesses, and nonprofits, aid to impacted industries, and support for essential workers. It will also provide resources for state, local, and Tribal governments to invest in infrastructure, including water, sewer, and broadband services.
Isothermal Region will Receive $65.5 Million in Direct Funding
Key Categories of Eligible Funding Use
- Coronavirus Response & Relief – These funds are like and no more restrictive than previous appropriations provided through the CARES Act.
- Higher Wages for Public Employees – Up to $13 per hour above regular wages
- Replacement Revenue – Cities and towns can make up for lost revenue due to the COVID-19 emergency.
- Investments in Water, Sewer and Broadband Infrastructure – More guidance is coming from the Treasury
Resources from Local and National Partners
- NC League of Municipalities: NC & the American Rescue Plan Hub and American Rescue Plan Primer for Municipal Officials
- National Association of Counties: Local Funding Allocations and Letter to Treasury on Fund Implementation and Clarification
- National Association of Regional Councils: Analysis of the American Rescue Plan
- Resource: ARP state and local funds Fact Sheet
- Blog: When states and local governments can expect to receive funds
- Blog: Everything you need to know about the ARC
How Can IPDC Help?
IPDC can help our member organizations plan, administer, and document the funds they’ll receive from the American Rescue Plan’s State and Local Fiscal Recovery Fund.
Contact Steve Lockett, Interim Executive Director, at firstname.lastname@example.org to discuss how IPDC can help you and your organization.