Not Too Late for Local Governments to Request American Rescue Plan Local Funding AllocationsJuly 1st, 2021
Department of Community and Economic Development (DCED) Secretary Dennis Davin announced that due to an extension granted by the U.S. Department of Treasury, local governments still have time to request their portion of federal Local Fiscal Recovery funding provided by the American Rescue Plan Act (ARPA).
As of July 1, about 190 boroughs have not yet applied for the funding. More information is also available at boroughs.org/arp.
“Municipalities that have not yet requested the recovery funds available to them through the American Rescue Plan Act still have time to ensure they receive this critical funding,” said Secretary Davin. “This federal funding can be used to help support COVID-19 response efforts, replace lost revenue, and support economic stabilization for businesses and households. As our communities plan for long-term economic recovery, it’s important that every municipality utilizes the resources available to them.”
As part of the American Rescue Plan signed by President Joseph R. Biden, the federal government is providing a total of approximately $6.15 billion to Pennsylvania counties, metropolitan cities, and local government units to support COVID-19 response efforts, replace lost revenue, support economic stabilization for households and businesses, and address systemic public health and economic challenges.
Local governments that are NOT metropolitan cities or counties – called non-entitlement units of local government (NEUs) – must request the funds through the Commonwealth by visiting the DCED website. Counties and metropolitan cities should request funds directly through the U.S. Department of Treasury. Ten percent of eligible municipalities can still apply.
Treasury initially required all states to disburse all Local Fiscal Recovery funding within 30 days of the state receiving the federal funds. Pennsylvania recently received a 30-day extension on this window, but because each request requires processing time by DCED, the department strongly recommends that NEUs that have not yet requested their funds should do so within seven days.
Information about how to request funds, eligible uses for the funding, and federal allocation amounts for counties, cities, and NEUs can be found on the DCED website and the U.S. Department of Treasury website.
Local governments with further questions about accessing these funds should email email@example.com.