Capitol Corner October 2022

Congressional Action Needed to Preserve Treasury’s ARPA Support

With the Congressional appropriations process under way, the National Association of Counties (NACo), National League of Cities (NLC) and others are directing local governments and key stakeholders to ask their Members of Congress to support adding an American Rescue Plan Act (ARPA) flexibility bill to the year-end omnibus appropriations package or to the next must-pass legislation. The bipartisan bill is titled the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act (S. 3011/H.R. 5735). The bill would ensure the Department of Treasury continues to provide administration support to communities for ARPA programs, including the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) program. It would also give communities more flexibility to use remaining recovery funds on transportation, infrastructure, economic development and disaster relief projects.

The call to action came after the Department of Treasury recently told ARPA recipients that it plans to reduce staff and diminish services for ARPA programs due to funding shortfalls. Without Congressional action, the Treasury would shutter its call center, sharply curtail e-mail response operations and significantly limit the department’s ability to support SLFRF recipients.

On September 30, Congress passed a continuing resolution that funds the federal government through December 16, which did not include the legislative fix. Therefore, the national groups are encouraging their members to call for congressional action on the next opportunity before this Congress adjourns sine die. More information about NACo’s and NLC’s advocacy for ARPA flexibility is available here and here.

Federal funds are commonly passed through state agencies in North Carolina before being awarded to local governments, which can make the original funding source less obvious. Before proceeding with a procurement, local governments should verify whether an award originates from a federal source. This determination affects compliance obligations, including procurement standards, reporting, and audit requirements.

When a construction or repair contract over $300,000 involves a building, the procurement and contract are subject to additional requirements under N.C.G.S. 143-128. Therefore, this question must be answered to determine whether the additional statutory requirements apply to this procurement scenario.

The micro-purchase threshold is a federal procurement threshold under which competitive procurement is not required. The default micro-purchase threshold is $15,000, but local governments may increase the micro-purchase threshold up to $50,000. An explanation of increasing the micro-purchase threshold and a template for the required annual self-certification is available here.