U.S. Treasury Issues Final Rule on ARPA Funds


The U.S. Treasury has issued the Final Rule on uses for the ARP funds. The Final Rule takes effect on April 1. The final rule provides local governments with increased flexibility to pursue a broader range of uses. The U.S. Treasury recorded a webinar on the Final Rule.

Some changes included in the Final Rule are:

It allows a standard allowance for revenue loss of $10 million, allowing recipients to select between a standard amount of revenue loss or complete a total revenue loss calculation. Recipients that select the standard allowance may use that amount – in many cases their full award – for government services, with streamlined reporting requirements. 

The Final Rule clarifies that recipients can use funds for capital expenditures that support an eligible COVID-19 public health or economic response. For example, recipients may build certain affordable housing, childcare facilities, schools, hospitals and other projects consistent with final rule requirements.  

The Final Rule also broadens eligible broadband infrastructure investments to address challenges with broadband access, affordability, and reliability. It adds additional eligible water and sewer infrastructure investments, including a broader range of lead remediation and stormwater management projects.




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