American Rescue Plan Act of 2021 (ARP): State Law Authority To Expend ARP Funds

Update: On January 6, 2022, the U.S. Department of the Treasury issued the Final Rule, which governs the eligible uses of Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) under the American Rescue Plan Act (“ARPA”). The Final Rule makes several key changes to the Interim Final Rule, including expanding the eligible uses of CSLFRF and easing the administrative burden for some program requirements. Please review the Final Rule to learn more about the updated CSLFRF program requirements. (Treasury has also published these helpful resources: overview of the Final Rule and a Compliance and Reporting Guidance (updated 11/15/21).) As always, consult your local attorney with questions.

Note that the information below has not been updated since the release of the Final Rule and some of it may no longer be accurate. Please visit our main category page to access more recent posts.

Local governments have received, or soon will receive, their first tranche distribution of American Rescue Plan Act (ARP) funds.(These funds are also referred to as Coronavirus State and Local Fiscal Recovery Funds, CSLFRF, CLFRF, or Fiscal Recovery Funds.) US Treasury continues to update its guidance on allowable expenditures for these funds. It has published the Interim Final Rule (and will finalize it some time after receiving final comments by July ___, 2021). US Treasury has also published, and continues to update, FAQs, further detailing the contours of allowable expenditures. Local officials should review this guidance closely (and monitor for any significant changes) before making final spending decisions. (In the meantime, local officials may accept the funds, adopt a preliminary budget, and set up an accounting and reporting structure. More info on those processes here.)