Spending Guidance

‚ÄčThe U.S. Treasury Department is expected to issue official guidance on the use of American Rescue Plan funds shortly. That guidance, along with a municipal-focused review of that guidance, will be provided here once available.

New - U.S. Treasury Publishes Step-by-Step Process for Cities to Receive ARP Funds
As soon as possible, cities should ensure they have a valid DUNS number, an active SAM registration, and gather payment information.

New - NLC Searchable Summary of Provisions

The following Q&A should help answer some initial questions.

How will the state pass the money through to smaller cities?

  • The state will pass through funds according to a predetermined formula, and importantly, the language states that the state “shall” distribute the funds, not that it “may.”  The state is subject to penalties if it fails to distribute these funds and cannot collect any processing fees for the pass through of funds.

Can states place any additional restrictions on ARP funds?

  • Our understanding is that the guidance for the use of ARP funds will come from the federal government.  The U.S. Treasury guidance for the CRF monies specified the state could not put any additional restrictions on use, and we hope the guidance for the ARP will use similar language.  States have not been given any authority to place additional restrictions on the use of the ARP funds.

What can ARP funds be used for?

  • To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel and hospitality.
  • To respond to workers performing essential work during the COVID–19 public health emergency by providing premium pay to eligible workers of the city that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work.
  • For the provision of government services to the extent of the reduction in revenue of the city due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency.
  • To make necessary investments in water, sewer, or broadband infrastructure.

What uses are not allowed for the funds?

  • Reducing taxes by legislation, regulation or administration.
  • Deposits into pension funds.

Contact: Mark Gharst, Lobbyist - or 503-991-2192

View Title-by-Title Summary of the American Rescue Plan