Distribution of ARP Funds to Local Governments to Begin this Month

May 12th, 2021

The U.S. Department of the Treasury launched the $362 billion Coronavirus State and Local Fiscal Recovery Funds on Monday, May 10, 2021 as part of the American Rescue Plan Act of 2021 that was signed into law by President Biden on March 11. This portion of the plan will distribute aid to state and local governments.
On May 10, 2021, the U.S. Treasury issued the much anticipated Interim Final Rule guidance document on the use of the Coronavirus State and Local Fiscal Recovery Funds. Included in the guidance is the flexibility to use Recovery Funds to invest in broadband infrastructure, services and programs to contain and mitigate the spread of COVID-19, including capital investments in public facilities, payroll and covered benefits expenses for public health, health care, human services, public safety and similar employees, and investments in housing and neighborhoods. Funds should not be used by state and local governments to cut taxes, pay down debt, or bolster reserve funds.
Metropolitan cities have been allocated $45 billion and non-entitlement units of local governments have been allocated $19.5 billion. Local governments should expect to receive funds in two tranches, with half coming this month and the rest a year from now.
Reminder About Action Items for Entitlement and Non-Entitlement Communities
As a reminder, local governments in PA should take steps to ensure that they receive their funding allocation through the Coronavirus State and Local Fiscal Recovery Funds Program. By undertaking these preparatory steps, eligible entities will be better positioned to receive payments in a more timely manner. For more information, click here.
Questions? Contact Ron Grutza, PSAB Senior Directory of Regulatory Affairs & Assistant Director of Government Affairs, at