AMERICAN RESCUE PLAN (ARP) FUNDING AND OTHER POST-PANDEMIC
SUPPORT FOR LOCAL GOVERNMENTS
The federal American Rescue Plan Act of 2021 (ARP) established Coronavirus State and Local Fiscal Recovery Funds (“FRF”), which will be distributed to state and local governments for the purpose of responding to negative economic impacts of stemming from COVID-19. There are many possible uses of FRF, ranging from premium pay for essential workers, to water, sewer, affordable housing, and broadband infrastructure. The mere fact that the federal government approves a particular use of FRF does not mean a North Carolina local government possesses legal authority to engage in that activity. As Kara Millonzi explains in an April blog post, all local government activities must also comply with state law requirements.
This website is intended to serve as a resource for local governments navigating the complexities of this new federal funding. It includes a collection of relevant School of Government blog posts, a link to a discussion forum for local government finance officials hosted on NC Finance Connect, and links to resources available from others. We will add to this site regularly as more resources become available.
The School of Government partnered with various organizations to host a free six-day course in October via Zoom on Basics of the American Rescue Plan Act (ARPA). The live course was recorded and made available to view on-demand for those unable to attend live. Learn more about the program here.
Address COVID Public Health
Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff;
Address COVID Economic Impact
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 Revenue
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;
Premium Pay
Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and,
Infrastructure Investments
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.