The American Rescue Plan

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The American Rescue Plan

A deep dive into EDA ARP funding opportunities

The Foothills Regional Commission, in partnership with the Economic Development Administration (EDA), the Centralina Regional Council, and the Western Piedmont Council of Governments, co-hosted a virtual meeting Aug. 9 to discuss the new EDA ARP funding opportunities and how we can champion local projects. 

If you missed the live event, you can catch up on the presentation here.

NCLM’s American Rescue Plan Funding at a Glance and Guidance

The North Carolina League of Municipalities has released a guide that provides information on American Rescue Plan funding at a glance as well as guidance on utilizing these appropriations.

You can find this resource here

NC Pandemic Recovery Office (NCPRO) Updates: New Guidance, Governor’s Budget Information, Pre-Contracting Checklist, and 75% Cap Requirement

The NC Pandemic Recover Office (NCPRO website) has updated guidance on the US Treasury Interim Final Rule and affiliated FAQ, as well as an overview of Governor Cooper’s ARP Budget Recommendations.

In order for non-entitlement communities to receive their appropriate ARP funding through the State, they must complete a Pre-Contracting Checklist, and submit it to NCPRO.

According to guidance from the US Treasury, each non-entitlement unit of government (NEU)’s total award (the total of distribution of under both the First and Second Tranche) is capped at 75% of its total annual operating budget (including general fund and other funds) as of January 27th, 2020.

It is important for all communities to submit a Pre-Contracting Checklist to the NCPRO office to determine whether this 75% cap applies to their community.

U.S. Treasury Local ARP Fund Guidance, and Related ARP Resources

The long awaited guidance from U.S. Treasury has arrived! With the passage of the American Rescue Plan (ARP) on March 11th, local governments in our region will receive direct assistance from the federal government to help with economic recovery. Get the best and most up-to-date information on the ARP and funding through these resources from our partners.

U.S. Treasury Compliance and Reporting Guidance – June 17, 2021

U.S. Treasury Guidance – UPDATED June 8, 2021

American Rescue Plan: Impacts in North Carolina

ICMA Webinar: Using Recovery Funds

NC League of Municipalities ARP Hub

National League of Cities: Weekly Update Calls, and Summary of ARP Provisions

ARP Update from NC League of Municipalities

The U.S. Treasury issued new information on steps that all municipalities should take prior to receiving funds through the federal American Rescue Plan. They include, if you have not done so already, registering for a federal DUNS number and ensuring that your municipality has an active federal SAM registration. More information on these and other steps, including how to complete them, can be found here. Completing these steps at your earliest convenience will help ensure that there is no delay in receiving the allocation of funds your municipality is eligible for through the ARP. Entitlement cities through the CDBG program are expected to receive funds directly from the federal government by May 11, 2021. Non-entitlement cities should receive funds through the State of N.C. by June 11, 2021. The League and its partners at the National League of Cities are recommending that all cities, regardless of size and CDBG status, complete both the DUNS and the SAM registration processes. Additional guidance from the U.S. Treasury on eligible expenditures of ARP funds is still forthcoming. We expect that guidance to be released prior to May 11. Additional questions related to the ARP can be sent to the League’s ARP email address.

ARP Overview

The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus Package or American Rescue Plan, is a $1.9 trillion economic stimulus bill passed by the 117th United States Congress and signed into law by President Joe Biden on March 11, 2021, to speed up the United States’ recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession.

State and Local Fiscal Recovery Fund

The American Rescue Plan provides $350 billion dollars in emergency funding for state, local, territorial, and Tribal governments to remedy the mismatch between rising costs and falling revenues. This includes:

  • $195 billion for states, (a minimum of $500 million for each State);
  • $130 billion for local governments (a minimum of $1.25 billion per state is provided by the statute inclusive of the amounts allocated to local governments within the state);
  • $20 billion for tribal governments; and
  • $4.5 billion for territories

The Rescue Plan will provide needed relief to state, local, and Tribal governments to enable them to continue to support the public health response and lay the foundation for a strong and equitable economic recovery.

In addition to helping these governments address the revenue losses they have experienced as a result of the crisis, it will help them cover the costs incurred due responding to the public health emergency and provide support for recovery – including through assistance to households, small businesses, and nonprofits, aid to impacted industries, and support for essential workers. It will also provide resources for state, local, and Tribal governments to invest in infrastructure, including water, sewer, and broadband services.

Isothermal Region will Receive $65.5 Million in Direct Funding

Key Categories of Eligible Funding Use

  • Coronavirus Response & Relief – These funds are like and no more restrictive than previous appropriations provided through the CARES Act.
  • Higher Wages for Public Employees – Up to $13 per hour above regular wages
  • Replacement Revenue – Cities and towns can make up for lost revenue due to the COVID-19 emergency.
  • Investments in Water, Sewer and Broadband Infrastructure – More guidance is coming from the Treasury

Resources from Local and National Partners

  1. NC League of Municipalities: NC & the American Rescue Plan Hub and American Rescue Plan Primer for Municipal Officials
  2. National Association of Counties: Local Funding Allocations and Letter to Treasury on Fund Implementation and Clarification
  3. National Association of Regional Councils: Analysis of the American Rescue Plan
  4. Resource: ARP state and local funds Fact Sheet
  5. Blog: When states and local governments can expect to receive funds
  6. Blog: Everything you need to know about the ARC

How Can Foothills Regional Commission Help?

FRC can help our member organizations plan, administer, and document the funds they’ll receive from the American Rescue Plan’s State and Local Fiscal Recovery Fund. Contact Karyl Fuller, director of Community & Economic Development, at [email protected] to discuss how FRC can help you and your organization.