American Rescue Plan Act

The American Rescue Plan Act of 2021 provides direct funding for all counties and municipalities to respond to COVID-19

The American Rescue Plan funds enable local governments to continue their digital transformation, providing accessible contactless services to citizens and supporting staff with digital tools to work safely and remotely.

Value Payment Systems helps you respond to COVID-19 by providing fully accessible websites for citizens, online government service options, contactless ePayments, and remote management by staff. We can accelerate your digital transformation with online solutions that meet citizen expectations, ensure business continuity, and position your community for the future.

Learn More about ARP Potential Funding for Local Government Website Upgrades

When did the American Rescue Plan Act (ARP) officially start?

The American Rescue Plan Act (ARP) was signed into law by President Biden on Thursday, March 11, 2021.

How soon will ARP funds be distributed?

US Dept. of Treasury is to distribute initial payments within 60 days of enactment (March 11).

How much of the funds provided in ARP go to state and local governments?

The State and Local Coronavirus Fiscal Recovery Funds provisions within ARP includes $350B for state, local and tribal governments. For context, CARES provided $150B.

How are the funds divided between local government agencies?

Approximately 40% of the $350B ($130.2B) will be distributed to counties and municipalities across the US, with allocations based upon population:

  • $65.1B to Counties: Every county in America will receive a direct allocation from the US Dept. of Treasury
  • $65.1B to municipalities: Every municipality will receive funds as follows:
  • $45.57 billion in direct federal aid for municipalities with populations of at least 50,000, using a modified Community Development Block Grant formula
  • $19.53 billion for municipalities with populations of less than 50,000 based on each jurisdiction’s percentage of the state’s population.

Aid to the municipalities is distributed through the states, with the ability for states to request an extension if they are unable to distribute within 30 days.

  • Municipalities and counties will receive funds in two tranches – with 50 percent this year and the remaining 50 percent no earlier than 12 months from the first payment.
  • All distribution and expenditures of these funds must occur by December 31, 2024

What are the allowable uses of the ARP funds?

Acceptable uses to meet eligibility requirements for funding under the American Rescue Plan are broadly defined to include:

  • Respond to or mitigate the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19) or its negative economic impacts.
  • Cover costs incurred as a result of such emergency.
  • Replace revenue that was lost, delayed, or decreased (as determined based on revenue projects for the State, Tribal Government, or territory as of January 27, 2020) as a result of such emergency; or
    Address the negative economic impacts of such emergency.

What reporting requirements do the government agencies have on use of funds?

Local governments must provide periodic reports that show in detail how the funds were used.