Highlights of Local Government Funding in the American Rescue Plan Act

 
Bowles Rice Banking and Financial Services e-Alert
ARPA
Highlights of Local Government Funding
in the American Rescue Plan Act

The recently enacted $1.9 trillion economic stimulus package known as the American Rescue Plan Act (ARPA) contains dedicated funds to local governments throughout our region. ARPA will result in the delivery of $677 million to West Virginia counties and municipalities. Award sizes range from $44.84 million for Huntington to $60,000 for several small cities, and from $34.55 million for Kanawha County to $1.13 million for Wirt County. For Pennsylvania, ARPA contains $6.4 billion for local governments across the Commonwealth, including $383 million for Allegheny County, $98 million for Washington County, $107 million for Westmoreland County and $355 million for the City of Pittsburgh. Here are some highlights of ARPA:

WHEN WILL THE MONEY ARRIVE?
Communities throughout our region should receive half of the award amount by May 11, 2021, and the remaining half by May 11, 2022.

FOR WHAT PURPOSES CAN LOCAL GOVERNMENTS USE ARPA FUNDS?

  • Water and sewer system improvements
  • Broadband infrastructure improvements
  • Cost of responding to public health emergency and its negative economic impacts, including assistance to non-profits, businesses, households, and impacted industries such as tourism
  • Premium pay to essential workers during the emergency crisis
  • Replenish tax revenue shortfalls

CAN LOCAL GOVERNMENTS TRANSFER ARPA FUNDS TO OTHER PARTIES?
Local governments may transfer ARPA funds to special purpose units of state and local government, such as public service districts, and to non-profits.

WHAT REGULATIONS ATTACH TO ARPA FUNDS?

  • Local governments will be required to submitted periodic reports containing detailed accounting of the use of ARPA funds to the U.S. Dept. of the Treasury. The Treasury Department is developing forms and rules which should be announced in the next few months.
  • Local government bodies that fail to submit reports or fail to adequately document proper use of ARPA funds are subject to a repayment obligation to the Treasury Department.
  • Local governments are subject to compliance with state law generally, including publicly bidding of certain contracts.

HOW QUICKLY DO ARPA FUNDS NEED TO BE PUT TO USE?
ARPA funds delivered directly to local government units need to be spent in full by December 31, 2024.

CAN ARPA FUNDS BE USED IN CONJUNCTION WITH OTHER FUNDING SOURCES?
Yes. For example, ARPA funds could be used to pay engineering design expenses on a water or sewer project that will be completely designed by December 31, 2024, and funding from another source, such as funds obtained through the West Virginia Infrastructure and Jobs Development Council, could be used to pay the cost of construction, which may not be completed until after December 31, 2024.


For more information
Bowles Rice has a long history of working with government entities to help them realize the full benefits of federal economic development funding programs such as ARPA. Among other things, we can help you prepare and implement appropriate private contractor, public-private partnership or intergovernmental agreements; identify funding opportunities through state and federal programs and bond offerings; comply with ARPA accountability obligations; and navigate any and all regulatory processes associated with ARPA and other programs of this nature. If you have any questions, visit our American Rescue Plan Act webpage or contact a team member listed below.

Tom Heywood
Charleston, WV
(304) 347-1702

Roger Hunter
Charleston, WV
(304) 347-1101

Taylor Frankovitch
Southpointe, PA
(724) 514-8933

Jim Kelsh
Charleston, WV
(304) 347-1135

Kin Sayre
Martinsburg, WV
(304) 264-4226

Sharon Menchyk
Southpointe, PA
(724) 514-8924

Ellen Maxwell-Hoffman
Charleston, WV
(304) 347-1186

Cam Siegrist
Charleston, WV
(304) 347-1129

John Nobbs
Southpointe, PA
(724) 514-8945


Bowles Rice LLP is a Full-service Law Firm
For more information, visit our website:
bowlesrice.com

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