State and Local Governments Need to Understand the Compliance and Reporting Requirements for ARPA Funds

The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, a part of the American Rescue Plan Act (“ARPA”), is delivering $350 billion to state, local, and Tribal governments across the country to support recovery from the COVID-19.

State and local government may use the funding to:

• Replace lost public sector revenue, using this funding to provide government services up to the amount of revenue lost due to the pandemic
• Respond to the far-reaching public health and negative economic impacts of the pandemic, by supporting the health of communities, and helping households, small businesses, impacted industries, nonprofits, and the public sector recover from economic impacts
• Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical sectors
• Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, to support vital wastewater and stormwater infrastructure, and to expand affordable access to broadband internet

Recipients of the ARPA funds are required to comply with Treasury’s Compliance and Reporting Guidance and meet compliance and reporting responsibilities defined in the Final Rule, which includes submitting mandatory periodic reports to Treasury. The Treasury’s Compliance and Reporting Guidance can be found at: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds/recipient-compliance-and-reporting-responsibilities

Our firm can assist ARPA recipients with these compliance requirements.