RQAW News

What should I know about the American Rescue Plan?

The American Rescue Plan Act of 2021 (ARP) is providing aid in the amount of $130 B to help local counties, cities, and towns mitigate damage from the COVID-19 pandemic. Smaller communities should expect to receive the first half of funds directly from the State between May 11th and August 9th. Larger communities will collect money directly from the Treasury. The second tranche will be delivered no earlier than one year from the receipt of the first payment.

Curious what your county, city, or town will receive? Indiana state and local allocations can be found here: https://www.in.gov/sboa/files/Copy-of-State-and-Local-Allocation-Output-03.08.21-3.xlsx

How can I use these funds?

  • Invest in water, sewer, and broadband infrastructure.*
  • Increase hourly wages above the base hourly wage for essential employees or issue a grant to their employers.
  • Reimburse revenue spent on certain COVID-19 expenses directly related to the pandemic.
  • Provide aid to private employers directly impacted by the pandemic.

What other information should I know?

According to the information provided in the ARP, each community must have a separate account to receive the funds. Entitlement cities, larger ones receiving funds direct from the Treasury, will need to ensure they have an active SAM registration on sam.gov. Non-entitlement communities need a valid DUNS number which is a nine-character number from Dun & Bradstreet.

If your community collects more than $750,000 of federal assistance in a calendar year, the money will go through a “single audit” by the State Board of Accounts. Funds from the ARP are included along with other federal grants, funds, and awards to reach this total.

Plan to keep thorough records. The Treasury will require periodic reports on how funds are being utilized and may even continue for years after the money has been spent.

Unlike funds received in previous COVID-19 relief bills that do not have a deadline, ARP money must be spent by December 31, 2024.

Next Steps

Develop a plan for your community to use the funds. Determine local goals and how to achieve them, and list by priority.

Strategically combine with other funding options. This allocation may be able to benefit your community more by incorporating other relief bill capital and utilizing other grant and loan options.

Share your success with residents and neighbors!

*The statute states that the allowable infrastructure includes water, sewer, or broadband. It is unclear at this point if waste and stormwater are allowable uses. As for other infrastructure projects, we will have to wait for Treasury guidance to see what is considered a permissible use.

https://www.nlc.org/covid-19-pandemic-response/arp-local-relief-frequently-asked-questions/#how-to-funds