2021 American Rescue Plan Act (ARPA) – proper uses of funds for local governments

According to the American Rescue Plan Act (ARPA), local governments have until December 31, 2024 to spend the funds on eligible purposes.  These funds cannot be banked.  ARPA states that these funds can be spent:

  • To respond to the public health emergency caused by COVID-19
  • To provide assistance to households, small business, and nonprofits
  • To aid impacted industries such as tourism, travel, and hospitality
  • For premium pay to eligible workers performing essential work
  • For grants to eligible employers that have eligible workers who perform essential work
  • To make necessary investments in water, sewer, or broadband infrastructure