ARPA – How Can Cities Use ARPA Funds

The American Rescue Plan Act (ARPA) was signed into law by president Biden on March 11, 2021. it guaranteed direct relief to cities, towns, and villages in the United States.


the plan included $350 billion emergency funding for state, local, territorial, and tribe governments, known as the Coronavirus State and Local Fiscal Recovery Funds.

the U.S. Department of the Treasury is responsible for overseeing this unprecedented program. NLC is sharing information about municipal allocations by state and city leaders’ questions with the Treasury.


What is ARPA? in addition to funding households, small businesses, and schools, the American Rescue Plan Act (ARPA) provided relief funds to state, local, and tribal governments that have been negatively impacted by the coronavirus pandemic.

To illustrate the ways recipients are using their recovery funds, NCSL crested a database detailing actions by the states, the District of Columbia, and the territories. the database is updated daily. with NCSL’s power BI database, you can search actions by state, category, and authority.

What Does ARPA Stand For?

The Full meaning for ARPA is America Rescue Plan Act.

ARPA Funding

The American Rescue Plan Act provides $350 billion in additional funding for state local governments. the state funding portion is approximately $195 billion with $25.5 billion distributed equally among the 50 states and the District of Columbia and the remaining amount distributed according to a formula based on unemployment.

The total funding portion is approximately $130 billion, equally divided between cities and countries. Localities will receive the funds in two tranches. first, is the U.S. treasury certifying, and the second one year later.

cities Fund

For cities, $65 billion is divided between jurisdictions that are community Development Block Grant (CDBG) entitlement jurisdictions and those that are not. $45.5 billion of the $65 billion will be allocated to metropolitan cities utilizing a modified CDBG formula.

Countries Fund

For countries, the $65 billion will be allocated based on the country’s population. countries that are CDBG recipients will receive the larger population or CDBG-based formula.

How Can Cities Use ARPA Funds?

Cities can use ARPA funds to:

  • Provide premium pay for essential workers
  • it supports public health expenditures
  • address the negative economic impacts caused by the public health emergency
  • replace lost public sector revenue.
  • invests in water, swear, and broadband infrastructure

the cities have until December 31, 2014, to obligate funds and until December 31, 2026, to spend funds.

Restrictions on the Uses of ARPA funds

  • funds allocated states cannot be used directly or indirectly to offset tax reductions
  • funds cannot be deposited into any pension fund

What is ARPA Funding

The ARPA Funding is services that provide emergency grants, lending, and investment to hard-hit small businesses so they can rehire and retain workers and purchase the health and sanitation equipment they need to keep workers safe.

What is ARPA Funding Uses?

To address the negative economic impacts caused by the public health emergency, the funding is used for lost public sector revenue, providing premium pay for essential workers, and the fund is invested in water, sewer, and broadband infrastructure.

The funding offer ARPA offers a unique opportunity for state and local governments to make strategic investments in long-lived assets, rebuild, and more.

ARPA Frequently Asked Questions 

what Can ARPA be Used For?

Cities can use ARPA funds to replace lost public sector revenue, provide premium pay for essential workers, and invest in water, sewer, and broadband infrastructure.

What is the ARPA Fund?

The funding offered under ARPA provides a unique opportunity for state and local governments to make strategic investments in long-lived assets, rebuild reserves to enhance financial stability.

Who Receives ARPA Funds?

The funds plan includes $350 billion in emergency for state, local, territorial and tribal governments, known as the coronavirus state and local Fiscal Recovery funds.

what can American Rescue Act Funds be used for?

The Rescue plan provides that states and other governments may spend these funds to respond to the pandemic and its negative economic imparts, provides bonus pay to essential workers, restore cuts in public services caused by pandemics,s and more.

what Does ARPA Stand for?

ARPA according to this article means American Rescue Act Funds

How do I Access American Rescue Plan Funding?

Go to Grants. gov’s Organization to create a new organization registration. you can contact them or send an email. The Contact center is available 24 hours a day, for 87 days a week

Where Does APRA Money Come From?

Metropolitan cities will receive direct funding under the America Rescue Plan Act. The Act designates Metropolitan cities will receive their funds directly from the U.S. Department of Treasury. The Act designates Non-Entitlement Units of Local Government will receive federal funds through their state.


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