Important U.S. Treasury Guidance on Local Government Use of American Rescue Plan Funds
Factsheet Provides More Detail on Eligible ARP Uses; Interim Final Rules
- Methodology to calculate lost revenue
- Clarification on backpay for essential workers and who is eligible
- How to determine an unserved or underserved broadband area
- What water and sewer projects are eligible including storm water
- Details on using ARP to assist small businesses and tourism recover including loan and grant programs
Detailed guidelines and examples of types of programs and services the funds can support are given in the fact sheet. General uses are below:
- Supporting the public health response
- Addressing the negative economic impacts caused by the public health emergency
- Serving the hardest-hit communities and families
- Replacing lost public sector revenue
- Providing premium pay for essential workers
- Investing in water and sewer infrastructure
- Investing in broadband infrastructure
Ineligible Uses
- Funding may not be used to directly or indirectly offset a reduction in net tax revenue due to a change in law from March 3, 2021 through the last day of the fiscal year in which the funds provided have been spent
- No recipient may use this funding to make a deposit to a pension fund