Capitol Corner May 2021

American Rescue Plan Update

On Monday, May 10, the last day of the statutory limit, the U.S. Department of the Treasury issued its long-awaited guidance and allocations distributing $65.1 billion each to cities and counties of all sizes. 

The Coronavirus State and Local Fiscal Recovery Program (SLFRP) provides substantial flexibility for each government to meet local needs — including support for households, small businesses, impacted industries, essential workers and the communities hardest hit by the crisis. These funds can also be used to make necessary investments in water, sewer and broadband infrastructure. 

Treasury will distribute funds to eligible state, territorial, metropolitan city, county and Tribal governments. Eligible local governments that are classified as non-entitlement units (NEU) should expect to receive this funding through their state government. NEUs are generally local governments with populations of less than 50,000. Jurisdictions classified as NEU, cannot receive this funding directly from Treasury and should not request funding through the Treasury Submission Portal. 

 A few highlights: 
  • Local governments should establish revenue accounts internally for the SLFRP separate from general funds and from CARES Act funding.
  • Funds must be obligated by December 31, 2024, but work may continue through December 31, 2026, especially for infrastructure projects.
  • Localities should confirm allocations as calculated by U.S. Treasury as many amounts are different from earlier estimates.
  • The portal is open for entities eligible for direct allocation to enter information for receiving funds.
  • The guidance has provided additional steps for states to take before distributing funds to NEUs, so the NC Pandemic Recovery Office (NCPRO) has warned this step could add more time for distribution than originally anticipated. 
  • The request for SSN and possibly other personal information for the person in charge of the SLFRP is legitimate in order to reduce and prevent fraud. 
  • The current guidance is an interim final rule. Treasury will be receiving comments on the interim rule until July 9, and then an updated rule will be issued within 60 days.
More details on the guidance will be  forthcoming. Meanwhile the following links are worth reviewing: 

 Check out Centralina’s Member Portal for the above documents and a forthcoming ARP Planning Playbook, our guide for making the most out of this historic opportunity to invest in our communities.  

 For more information, please call Leslie Mozingo, Centralina’s federal government relations specialist at 202-255-5760 or email her at leslie@strategics.consulting. 

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