What is the American Rescue Plan Act (ARPA)?
The American Rescue Plan Act of 2021 (ARPA), contained in Public Law 117-2, appropriated $45.57 billion to metropolitan cities nationwide. ARPA directed the U.S. Department of the Treasury to make direct payments to these cities. If a metro city is non-responsive, the funds go back to U.S. Treasury for a subsequent re-distribution.
As a result of this law, your city will be receiving federal funding related to your recovery from the COVID 19 Pandemic. This funding will be received in two equal tranches (each for one half of total amount). The first allocation became available in mid-May 2021. The second tranche will be available 12 months after receipt of the first. The Rescue Plan funding differs from the previous CARES Act funding. This funding is provided to your city from the U.S. Department of Treasury, it is not connected in any way with the State nor the Federal Emergency Management Agency (FEMA); the timeframe for expenditure of this funding is well beyond what the was provided with CARES funding. Your city has until December 31, 2026, to expend this funding; and should the City choose to implement grant programs, the requirements for the use of this funding for assistance to local residents, small businesses, and non-profit organizations are far less stringent than the previous Federal guidelines. This will enable more expeditious distribution to those in need. While less stringent, it is important to note that there will be a continued focus on fraud prevention and detection, as well as avoidance of duplication of benefits.
How will this benefit my city?
ARPA funding is 100% federal, there is zero local match required. Funding provided can be used for critical infrastructure needs (stormwater/wastewater/sewer), broadband, replenishing loss of revenue, public health, premium pay for essential government and private business workers, and to reduce adverse economic impacts (grants to residents, small businesses, and non-profit organizations). A critical aspect of the program that could provide even greater flexibility for spending is a fairly complex calculation of loss of revenue. If done correctly, this can provide additional flexibility to pay for:
The program includes funding for your city to engage qualified professional consultants, such as the Integrity Group, to help administer your ARPA program (this can be easily accomplished through our designation on the Florida State Term Contract).
Process Moving Forward
Acquisition of funds from the U.S. Treasury
Determine Loss of Revenue using actual losses or allowed counterfactual calculation
Development of compliant spending plan
Why The Integrity Group?
Waiting could cost your city significant earned interest on these funds. Ready to get started?
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