American Rescue Plan Act (ARPA)

American Rescue Plan Act of 2021

What is the American Rescue Plan Act? 

The American Rescue Plan Act of 2021 (ARPA) was passed into law on March 11, 2021.  This law includes $19.5 billion in funding for Non-Entitlement Units of Government, of which the Town of Davidson is projected to receive $4.16 million by July 2022.

On June 22, 2021, the Davidson Board of Commissioner approved the receipt of the funds and a Special Revenue Ordinance to track the funds. The ordinance may be viewed here. These funds will not be comingled with the General Fund for the town.

What is the timeline?

The Town of Davidson received the first of two equal distributions in July 2021.

The funds must be allocated by December 31, 2024 and spent by December 31, 2026.

The United States Treasury Department accepted comments related to the guidance for expenditures until July 16, 2021. The Treasury Department is expected to issue final guidance that will further help inform how the funds can be spent in the near future. 

What can the funds be used for?

While the guidance has not been finalized, ARPA funds may be used for the following categories of expenditures, to the extent authorized by state law.

  1. Support public health expenditures by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff;
  2.  Address negative economic impacts caused by the public health emergency, including economic harm to workers, households, small businesses, impacted industries, and the public sector;
  3. 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;
  4. 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,
  5. 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.

Additional projects may be eligible depending on further guidance. 

All projects will be reviewed and approved by the board prior to allocation.

We will provide more information as it becomes available.

Resources

North Carolina League of Municipalities - Funding at a Glance

State of North Carolina - American Rescue Plan Act Information and Resources

U.S Department of the Treasury - Coronavirus State and Local Recovery Funds

U.S. Congress - H.S. 1319 - American Rescue Plan Act of 2021