New Treasury FAQ on ARPA Funding

The US Department of the Treasury has released a revised Frequently Asked Questions document, addressing inquiries that have arisen in the early implementation stages of the State and Local funding through the recent ARPA legislation.

This update includes answers to the following frequently received questions:

  • My county is a unit of general local government with population under 50,000.  Will my county receive funds directly from Treasury?
  • My local government expected to be classified as a nonentitlement unit. Instead, it was classified as a metropolitan city. Why?
  • May recipients use funds to pay “back to work incentives” (e.g., cash payments for newly employed workers after a certain period of time on the job)?
  • The Coronavirus Relief Fund (CRF) included as an eligible use: “Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency.” What has changed in CSFRF/CLFRF, and what type of documentation is required under CSFRF/CLFRF?
  • What staff are included in “public safety, public health, health care, human services, and similar employees”? Would this include, for example, 911 operators, morgue staff, medical examiner staff, or EMS staff?
  • How do I know if a certain type of revenue should be counted for the purpose of computing revenue loss?
  • Are governments required to submit proposed expenditures to Treasury for approval?
  • How do I know if a specific use is eligible?
  • Are recipients required to remit interest earned on CSFRF/CLFRF payments made by Treasury?
  • Is there a deadline to apply for funds?

The full FAQ document, dated May 27, is available on the US Treasury website.

Michael Sanderson

Executive Director Maryland Association of Counties