Local Fiscal Recovery Funding

American Rescue Plan Act

Local Governments May Now Request ARPA Funding

Vermont has received 50% of its American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Fund.  All 276 eligible municipalities have certified with the State to receive the funds. The State is required to distribute the local funds within 30 days to eligible cities, towns and villages based on a formula established in ARPA.

Check your municipality’s estimated amount at the link, Here

The funding does not include County Funding destined for Vermont. ACRPC, VLCT, Vermont’s Congressional Delegation and Governor Scott’s Administration have petitioned the Federal Treasury to change their determination that Vermont has general units of county government. Municipalities may need to take additional steps in the near future to access their share of the county funding, should it become available.

Municipalities are encouraged to consult the Resources and Information section of the VLCT ARPA website at vlct.org/arpa for more information. This section includes a checklist provided by the Treasury Department that will help communities prepare to use the State of Vermont portal, the federal rules and regulations a community must agree to when requesting the funding, and more.

Maximizing the Impact of ARPA Funds

There are 4 areas that you can spend this money on:

  1. Pandemic Response: To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
  2. Workforce/Personnel: To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers;
  3. Lost Revenue: For the provision of government services to the extent of the reduction in revenue due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and
  4. Water, Sewer, Broadband Infrastructure: To make necessary investments in water, sewer, or broadband infrastructure. In addition, Congress clarified two types of uses which do not fall within these four categories

Treasury Guidance / What You CAN NOT Spend The Money On

  1. Federal Match;
  2. Pensions;
  3. Infrastructure Not Directly Addressed in ARPA; and
  4. Rainy Day Funds, Financial Reserves, and Outstanding Dept.

For more information or questions, please contact ACRPC Emergency Management Planner, Andrew L’Roe

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