LOC News
Treasury Releases Webinar on ARPA Final Rule
The U.S. Treasury has posted a recorded webinar online about the new “Final Rule” that will guide how state and local governments may spend their share of federal ARPA funds. The rule significantly increases flexibility in how local governments may use their ARPA funds when compared to the “Interim Final Rule” that cities had been working under previously.
Download the Slide Presentation
Treasury has a number of related documents on their website. The Final Rule provides the rule text and supplemental information. The Overview of the Final Rule provides a summary of major rule provisions. The Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule provides guidance on the transition period until the Final Rule officially takes effect on April 1, 2022.
The most significant change for most cities will be the ability to claim a minimum allowance for a revenue loss of $10 million and use up to that amount – for most cities this would be their full award – under the very flexible government services spending category with streamlined reporting requirements. The overview document explains “government services generally include any service traditionally provided by a government, unless Treasury has stated otherwise” (see page 11), and includes a non-exhaustive list of items, including: road building and maintenance, other infrastructure, general government administration, staff, administrative facilities, and provision of police, fire, and other public safety services.
Other changes in the Final Rule include: new flexibility under the water, sewer, and broadband infrastructure spending category; an enhanced ability to address housing issues; an expanded ability to bolster government employment; and clarification of allowed capital expenditures.
More information is available in this article from the team at the National League of Cities.
Additional Resources
- LOC's American Rescue Plan Resource Hub
- U.S. Treasury Website
- National League of Cities ARPA Website
Contact
Mark Gharst, Lobbyist - mgharst@orcities.org or 503-991-2192
Last Updated 1/14/21