American Rescue Plan Act

The information and documentation collected by the State prior to initiating payment must include the following:

• Local government name, Entity’s Taxpayer Identification Number, DUNS number, and address
• Authorized representative name, title, and email
• Contact person name, title, phone, and email
• Financial institution information (e.g., routing and account number, financial institution name and contact information) – if not on file with the Department of Financial Services
• Total NEU budget (defined as the total annual budget, including both operating and capital expenditure budgets, in effect as of January 27, 2020) or top-line expenditure total (in exceptional cases in which the NEU does not adopt a formal budget)
• Award terms and conditions agreement (to be provided with Funding Agreement)
• Assurances of compliance with Title VI of the Civil Rights Act of 1964 (to be provided with Funding Agreement)

All Federal financial assistance recipients must have a Data Universal Numbering System (DUNS) number and an active registration with the System for Award Management (SAM) database at SAM.gov. The DUNS and SAM registration process may take several business days to complete. Therefore, Treasury recommends that eligible entities begin those registration processes if they have not already completed them.

1. Ensure the entity has a valid DUNS number. A DUNS number is a unique nine-character number used to identify an organization and is issued by Dun & Bradstreet. The federal government uses the DUNS number to track how federal money is allocated. A DUNS number is required prior to registering with the SAM database, which is outlined below.
1. Registering for a DUNS number is free of charge.
2. If an entity does not have a valid DUNS number, please visit https://fedgov.dnb.com/webform/ or call 1-866-705-5711 to begin the registration process.
2. Ensure the entity has an active SAM registration. SAM is the official government-wide database to register with in order to do business with the U.S. government. All Federal financial assistance recipients must register on SAM.gov and renew their SAM registration annually to maintain an active status to be eligible to receive Federal financial assistance. There is no charge to register or maintain your entity SAM registration.
1. If an entity does not have an active SAM registration, please visit, SAM.gov to begin the entity registration or renewal process. Please note that SAM registration can take up to three weeks; delay in registering in SAM could impact timely payment of funds.

NEUs are required to enter into a Funding Agreement with the Division to receive funds. The Division will create a Funding Agreement and send it by email to recipients for e-signature. Once an NEU authorized representative signs the agreement, the Division will then execute the agreement and initiate payment.

ARPA requires NEU allocations to be based on the proportion of the population in the NEU as a share of the total population of all NEUs in the State. Concurrently, Section 603(b)(2)(C)(iii) of the Act and the Interim Final Rule provide that each NEU’s total award (i.e., the total of distributions under both the First and Second Tranche) is capped at 75 percent of its total annual budget, including both operating and capital expenditure budgets, in effect as of January 27, 2020.

The Division will make payments to NEUs from the CLFRF in two tranches, with the Second Tranche payment to be made no earlier than 12 months after the date on which the First Tranche payment is paid. The Division completed the initial 50% disbursements of each NEU payment in 2021 and will complete the final 50% payment in fall 2022.

Expenses must be eligible under Section 603 of the American Rescue Plan Act, the Treasury Interim Final Rule (Federal Register Volume 86, No 93), and any subsequent Treasury Guidance. ARPA requires that funds may only be used to cover expenses incurred by the non-entitlement unit of local government by December 31, 2024^[1], such as:

1. to respond to the public health emergency with respect to COVID-19 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. to respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of the non-entitlement unit of local government that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;
3. for the provision of government services to the extent of the reduction in revenue of such non-entitlement unit of local government due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year of the non-entitlement unit of local government; or
4. to make necessary investments in water, sewer, or broadband infrastructure. 

A broad range of services, expenditures, projects, and programs are eligible uses of funding under the CLFRF. To ensure the NEU is meeting the full scope of program compliance, expenditure eligibility, and reporting responsibilities, recipients should read and familiarize themselves with the authorizing statute, the Interim Final Rule, the SLFRF FAQs, the Reporting Guidance, and all other regulatory and statutory requirements.

Please be advised, Treasury will ultimately make all program eligibility determinations. Each NEU should consider consulting with the legal counsel within its entity for expanded interpretations of Treasury guidance within the scope of eligible expenditures.

[1] https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-and-Tribal-Governments.pdf

Each NEU is required to meet compliance and reporting responsibilities, as defined in the Final Rule and further described in the Compliance and Reporting Guidance as published by Treasury. Following initial disbursement of funds, each NEU must submit to Treasury a Project Expenditure Report by the April 30 annual deadline. A forthcoming User Guide, reporting templates, and other reference materials will provide information on submitting Project and Expenditure Reports. Please check back for updates.