This week marks the one-year anniversary of the historic investment in the nation from passage of the American Rescue Plan Act (ARPA). Throughout the week the White House has been celebrating the one-year anniversary by highlighting achievements made possible by the passage of the bill relevant information, fact sheets, and toolkits for communities. The $1.9 trillion coronavirus rescue package was designed to facilitate the United States’ recovery from the devastating economic and health effects of the COVID-19 pandemic. ARPA included $350 billion in aid to states, cities, tribal governments, and U.S. territories.
ARPA authorized the Coronavirus State and Local Fiscal Recovery Fund, including $65.1 billion in direct, flexible aid to every county, parish and borough in America. It represents a strong federal-state-local partnership and an investment in localities on the front-line keeping communities healthy, safe and vibrant.
Funding allocated under the State and Local Fiscal Recovery Funds (SLFRF) program is subject to the requirements specified in U.S. Department of the Treasury’s May 17, 2021 interim final rule, which became effective on that date and detailed whether a program, project or service was an eligible use. Treasury accepted public comments on the interim final rule through July 16, 2021 and after reviewing some 1,000 submitted comments adopted the final rule in early January 2022.
On January 6, 2022 Treasury issued the Final Rule for SLFRF program adding clarifications and additional guidance not available under the interim rule. For an in-depth overview of the Final Rule check out the National Association of Counties (NACo) analysis.
To date, Treasury has distributed more than $245 billion to state, local, and Tribal governments as a part of the SLFRF program, accounting for over 99% of funds eligible to be disbursed in 2021. Recipients of funds were encouraged to begin using funds under the interim final rule, which was released in May 2021 as the final rule does not take until April 1, 2022.
KEEPING TRACK OF ARPA DOLLARS INVESTED
An analysis by the Center on Budget and Policy Priorities found that state governments have appropriated nearly 70% of their available funds as of November 2021. Their review of these spending decisions shows that many states are using the funds constructively: to offset declines in their revenue collections; to address the health, economic, and fiscal impacts of the pandemic and contribute to the economic recovery; and to start new long-term investments to address racial and economic inequities.
In addition to this analysis of broad state– allocated ARPA spending, a partnership between Brookings Metro, the National Association of Counties (NACo), and the National League of Cities (NLC), aimed at highlighting innovative, evidence-based, well-targeted uses of SLFRF ARPA funds. They created the Local Government ARPA Investment Tracker. An online resource that compiles information from local governments to offer a detailed picture of how large cities and counties (with populations of at least 250,000) are deploying funding.
This tool adds to other important efforts to understand local ARPA implementation, including Results for America’s ARP Data and Evidence Dashboard, and the Treasury Department’s analysis of highlights from initial SLFRF reports.
Communities have until 2024 to fully plan for and commit their funds, and until 2026 to spend them. Local governments’ initial SLFRF expenditure reports contain useful roadmaps on where they are heading with ARPA funds; large cities and counties (those with populations of at least 250,000) have also delivered the first in a series of annual plans that outline their intended and actual uses of SLFRF dollars.
Collectively, these reports and tools detail thousands of projects across dozens of eligible expenditure categories and form the data behind the Local Government ARPA Investment Tracker.
NARC WANTS TO HEAR FROM REGIONAL ORGANIZATIONS
The National Association of Regional Councils (NARC) will be collecting information and tracking ARPA spending from regional councils over the next few months. If you have questions or information to share on how you are spending and planning for ARPA dollars please contact Jessica Routzahn at jessica@narc.org.
Additional Resources:
COVID-19 Communications Toolkit for Counties
Utilize NACo’s COVID-19 communications toolkit, including top-level messaging, outreach ideas and templates to share how your county is investing ARPA Fiscal Recovery Funds.
Visit NACo’s ARPA Fiscal Recovery Fund Resource Hub to find tools to share your story, explore county best practices, access analysis and more.
White House ARPA Anniversary Toolkit
Join the White House and states, cities, counties, territories to amplify the successful, historic, and lasting impact of the American Rescue Plan in social media and your local press!