COVID-19 ARPA Local Fiscal Recovery Funding

On Jan. 6, 2022, the U.S. Department of the Treasury issued the Final Rule for State and Local Fiscal Recovery Funds Program to support the ongoing COVID response. The Final Rule delivers broader flexibility and clarification in the program including information on capital expenditures, employee pay, water, sewer and broadband projects, and other areas. An overview of the Final Rule can be found on the U.S. Department of Treasury website. For additional questions on funding use, visit the Frequently Asked Questions webpage.

Overview

The American Rescue Plan Act of 2021 (ARPA) has allocated $6.15 billion to Pennsylvania counties, metropolitan cities, and local government units to support COVID-19 response efforts, replace lost revenue, support economic stabilization for households and businesses, and address systemic public health and economic challenges.

The U.S. Department of Treasury has established two separate methods for local governments to request these funds, depending on the type of local government.

  1. County governments and metropolitan city governments must request funds directly from the U.S. Department of the Treasury via their Submission Portal webpage.
  2. Local governments that are NOT metropolitan cities or counties – called non-entitlement units of local government (NEUs) – must request the funds through the Commonwealth.

Allocation of funds to NEUs is based on the proportion of the population in the NEU as a share of the total population of all NEUs in the state. View the list of allocated amounts to each NEU in Pennsylvania. Local governments will receive funds in two tranches, with 50% provided beginning in May/June 2021 and the balance delivered approximately 12 months later.

Uses

The COVID-19 ARPA Local Fiscal Recovery Fund will provide eligible state, local, and territorial governments with a substantial infusion of resources to meet pandemic response needs.

Recipients may use these funds to:

  • Support public health expenditures, funding for COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff
  • Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector
  • Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic
  • Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical infrastructure sectors
  • Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet

Within these overall categories, recipients have broad flexibility to decide how best to use this funding to meet the needs of their communities. To learn more about the eligible uses of the program, reference the Frequently Asked Questions for the Local Fiscal Recovery Funds program.

Eligibility

  • Counties
  • Metropolitan Cities
  • Local Government Units (NEUs)

How to Apply

The funds will be distributed in two ways:

1. Metropolitan Cities & Eligible Counties

The U.S. Department of the Treasury will distribute funds directly to eligible counties and metropolitan cities within Pennsylvania. In order to receive the funds, eligible counties and metropolitan cities must submit a request directly to the U.S. Department of the Treasury website.

Eligible jurisdictions will receive further communications regarding the status of their submission via the email address provided in the Treasury Submission Portal.

2. Local Government NEUs (local governments that are not metropolitan cities or counties)

Eligible local governments that are classified as non-entitlement units (NEUs) of local government should expect to receive this funding through their state. Municipal officials representing their non-county/non-city local government unit should request their funds through the Commonwealth.

Additional Information

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