LMR JUNE 2021

Long-anticipated ARPA Funding Rules Issued
Since the enactment of the
American Rescue Plan on March
11, state and local governments
have been waiting for the federal
government to issue rules to
specify how the allocated funding
may be used. As a general
proposition, LMA members may
use ARPA funding to:
• Support public health
expenditures, by funding
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
borne and will bear the greatest health risks
because of their service in critical infrastructure
sectors; and
• 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.
These broad categories of usage demand detailed implementation
rules, and on May 11, the US Department
of Treasury delivered on their promise, issuing a 151-
page interim rule, which provides in-depth explanations
on each usage type. While no rule can be expected to
address every situation, this long-awaited rule provides
critical information for our members to begin
planning their fund allocations in earnest.
To assist our members in sorting through the lengthy
rule provisions, a summary of the funding use portions
of the Treasury rule can be found on the LMA
website at www.lma.org.
Get Ready for Your ARPA Funding
Nearly all our members will receive their allocated
funding through the Louisiana Department of Treasury,
which is charged with developing rules for local governments
to submit their information to receive the
first tranche of funds. While we await the release of
that information, at treasury.gov, a detailed checklist
on what steps that your municipality can take to be
prepared for the moment when that portal is available,
including:
✓ Obtain or confirm your local government’s valid
DUNS number
✓ Gather your local government’s payment information:
• 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)
✓ Confirm your local government’s top-line budget
total (defined as your local government’s total annual
operating budget, including the general fund and other
funds, in effect as of January 27, 2020)
A step-by-step procedural summary of how funds will
be distributed is also available at treasury.gov, as well
as additional information on funding formularies, population
data, and more.
n the meantime, please stay tuned to our weekly
e-newsletters and email alerts for more information
about ARPA funding for municipalities. If you have any
questions, please do not hestitate to contact our office.
Page 18
LMR | JUNE 2021