![]() ![]() Elected leaders will need to decide how to best use the additional funding consistent with the ARPA requirements, which are very broad. If you have specific questions or need clarification, GFOA has launched an online portal to gather member questions to help shape engagement and solicit answers from the Administration.įor many jurisdictions, the funding provided under ARPA is substantial and could be transformational for states and local governments in their pandemic rescue and recovery efforts. GFOA will provide regular updates as information becomes available. That process is currently under development by the U.S. For example, the legislation requires each jurisdiction’s executive to “certify” that the funds will be used for eligible purposes. Funds cannot be deposited into any pension fund.įunding must be obligated by the end of calendar year 2024 and expended by the end of calendar year 2026.Īs with previous COVID-19 relief packages, implementation will be an extensive process as new or updated guidance and FAQs are developed and released by the U.S.Funds allocated to states cannot be used to directly or indirectly to offset tax reductions or delay a tax or tax increase.Restrictions on the uses of these funds include: ![]() Investments in water, sewer, and broadband infrastructure.COVID-19 expenditures or negative economic impacts of COVID-19, including assistance to small businesses, households, and hard-hit industries, and economic recovery,.Revenue replacement for the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency, relative to revenues collected in the most recent fiscal year prior to the emergency,.Counties that are CDBG recipients will receive the larger of the population or CDBG-based formula. Additionally, non-entitlement jurisdictions proceeds will be allocated through the state for redistribution to local governments.įor counties, the $65 billion will be allocated based on the county’s population. For the non-entitlement jurisdictions, the amount will not exceed seventy- five percent of their most recent budget as of January 27, 2020. ![]() $45.5 billion of the $65 billion will be allocated to metropolitan cities utilizing a modified CDBG formula, and the remaining amount for jurisdictions that are non-entitlement CDBG, will be allocated according to population. Treasury certifies the proceeds to each jurisdiction and the second one year later.įor cities, $65 billion is divided between jurisdictions that are Community Development Block Grant (CDBG) entitlement jurisdictions and those that are not. Localities will receive the funds in two tranches–the first after the U.S. The local funding portion is approximately $130 billion, equally divided between cities and counties. The state funding portion is approximately $195 billion with $25.5 billion distributed equally among the 50 states and the District of Columbia and the remaining amount distributed according to a formula based on unemployment. Please click here for GFOA’s analysis of ARPA. Signed into law on March 11, 2021, The American Rescue Plan Act of 2021 (“ARPA”) provides $350 billion in additional funding for state and local governments.
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