AMERICAN RESCUE PLAN ACT (ARPA) FUNDING

On March 11, 2021 Congress passed and the President signed the American Rescue Plan Act, which established a new $350 billion Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) for state, local, territorial, and Tribal governments to support immediate pandemic response, address economic fallout and lay the foundation for a strong and equitable recovery.  

Montgomery County is expected to receive $161 million in funding. Our Treasurer’s office has received $80 million in June 2021 and is expected to receive the second payment in 2022. Funds must be incurred by December 31, 2024 and expended by December 21, 2026. 

The stated purpose of the American Rescue Plan act CSLFRF funding is to “provide needed relief to state, local, and Tribal governments to enable them to continue to support the public health response and lay the foundation for a strong and equitable economic recovery. In addition to helping these governments address the revenue losses they have experienced as a result of the crisis, it will help them cover the costs incurred due to responding to the public health emergency and provide support for a recovery – including through assistance to households, small businesses and nonprofits, aid to impacted industries, and support for essential workers. It will also provide resources for state, local, and Tribal governments to invest in infrastructure, including water, sewer, and broadband services.”

We encourage you to visit the United States Treasury website for the Interim Final Rule, an informational Fact Sheet and Frequently Asked Questions. 

The eligible uses for ARPA funding:

Support public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff

• Vaccination programs, testing, contact tracing and Personal Protective Equipment
• Enhancement of public health data programs
• Capital investments in public facilities to meet pandemic operational needs
• Services to address behavioral healthcare needs such as mental health treatment, substance use, crisis intervention
• Payroll and covered benefits expenses

Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector

• Aid to workers and families for food, housing or other financial insecurity
• Supporting small business through grants, loans and counseling programs
• Speeding the recovery of tourism, travel and hospitality sectors
• Rebuilding public sector capacity

Serving the hardest-hit communities and families, in qualifying communities

• Addressing health disparities and the social determinants of health through community health workers, benefit navigators, lead remediation, violence intervention
• Investments in Housing and neighborhoods through assistance to those experiencing homelessness, housing affordability programs and housing navigation assistance
• Addressing educational disparities through early learning services, afterschool programs, additional resources to high-poverty districts
• Promoting healthy childhood environments including new or expanded high quality childcare, home visiting programs

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 stormwater infrastructure, and to expand access to broadband internet.