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    With the passage of the American Rescue Plan Act, all U.S. municipal and county governments will be entitled to direct, non-completive federal formula grants from the U.S. Treasury Department via the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF). Direct funding means that aid obligated to a local unit of government is not in any way allocated by/through another local or state entity. The county allocations can be found on the National Association of Counties website, and the metropolitan city allocations are available through the National League of Cities website. The treasury has yet to define the final allocations for non-entitlement units, those will be included in the previous link as they become available. The allocation methodology for metropolitan cities and non-entitlement units are available through treasury.gov.

    The CSLFRF provides eligible state, local, territorial, and tribal governments with a substantial infusion of resources to meet pandemic response needs and rebuild a stronger, and more equitable economy as the country recovers. Recipients may use these funds to:

    • Support public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff
    • Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector
    • Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic
    • Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical infrastructure sectors
    • Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and storm water infrastructure, and to expand access to broadband internet

    Local governments will receive CSLFRF funding in two tranches. 50% of funding was delivered in May of 2021, and the remaining balance is to be delivered approximately 12 months later.

    CSLFRF allocations are subject to the requirements specified in the Interim Final Rule, which was adopted May 10, 2021. The Treasury is currently seeking comment on all aspects of the Interim Final Rule, stakeholders are encouraged to submit comments electronically on or before July 16, 2021, through Regulations.gov.

    Recordings of ACCG and GMA webinars on ARPA – CSLFRF are available via the following links:

    For questions about the ARPA, contact Noah Roenitz, NEGRC Economic Resilience Coordinator.

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