Updated Guidance on the American Rescue Plan Act and First Reporting Deadline
- Details
The Treasury Department recently issued the Final Rule for the use of American Rescue Plan Act (ARPA) funds by municipalities, with some important new guidelines that towns should be aware of. The deadline for the first ARPA Project and Expenditure Report is April 30th and towns should begin preparing to submit the required information to the Treasury Department. Please contact us at the Windham Regional Commission if you have questions or need support.
State and Local Fiscal Recovery Final Rule Issued
The Treasury Department issued the State and Local Fiscal Recovery Final Rule in January 2022. Of note, Windham Region towns can now claim a Standard Allowance of up to $10 million for revenue lost due to the pandemic. The Standard Allowance allows a town to use its full ARPA award towards “government services.” Our understanding is this includes any service traditionally provided by a town government, including infrastructure investments, completing plans and studies, general administration, and provision of public safety services. Towns still need to keep track of what “government service” expenses they pay for with ARPA funds for federal reporting purposes. Please note there are still restrictions on the use of the funds and towns should contact VLCT for guidance
Project and Expenditure Report Deadline
The first deadline for towns to submit their ARPA Project and Expenditure Report is April 30, 2022. We recommend that towns log into the portal well before the deadline to ensure they understand the reporting requirements. The Vermont League of Cities and Towns offers an on-demand webinar on ARPA Compliance and Reporting – view here. The U.S. Treasury Department has also created an on-demand training for project and expenditure reporting for communities claiming the standard allowance for revenue replacement – view here. Additional resources on reporting requirements are provided below.
Community Engagement
We encourage towns to continue with their community engagement efforts to determine the best use of ARPA funds. Some examples from around the state include dedicated discussions at Selectboard meetings, forming an ARPA advisory committee, or creating a community survey. Towns can also refer to their plans for capital expenditures or the Town Plan as a starting off point.
Remember, there is still plenty of time to decide how to use your funds – the funds must be obligated by December 31, 2024 and expended by December 31, 2026. Towns may want to consider how ARPA funds can be leveraged to complete larger community projects. For example, funds could be used towards a local match requirement for a federal or state grant program. Additional funding opportunities may also come out of the current State legislative session and the recently passed federal infrastructure bill. For guidance on planning for the best use of ARPA funds, visit VLCT’s website.
Questions?
Please contact the WRC APRA team:
Susan Westa: This email address is being protected from spambots. You need JavaScript enabled to view it.
Matt Bachler: This email address is being protected from spambots. You need JavaScript enabled to view it.
You may also contact VLCT directly at: This email address is being protected from spambots. You need JavaScript enabled to view it..
ARPA Resources:
- U.S. Treasury Department Summary of the Final Rule
- VLCT Summary & Analysis of the Final Rule
- U.S. Treasury Department Webinar State & Local Fiscal Recovery Funds: Reporting for Non-Entitlement Units (March 22, 2022)
- VLCT ARPA Compliance & Reporting Page
- VLCT ARPA Advisory Committee Formation Toolkit
