Expanded ARPA Flexibility

Training for: Legal Notes

The 2023 federal budget package (P.L. 117-328) includes a provision entitled the “State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act,’’ (or “ARPA Flex” as we like to call it).

ARPA Flex provisions will provide municipalities new options when using their Coronavirus State and Local Fiscal Recovery Funds (a.k.a. “ARPA” funds), including: (1) providing emergency relief from natural disasters, including temporary emergency housing, food assistance, financial assistance for lost wages, or other immediate needs; (2) spending on eligible transportation infrastructure projects; and (3) spending on programs, projects, or services that would also be eligible under HUD’s CDBG program. The amount a grantee may spend on these new purposes is capped at $10 million or 30% of the total ARPA grant amount, whichever is larger. At this time, we have no other details on eligible projects.

The law also authorizes the U.S. Treasury Department to restore live technical assistance to grantees, which had been largely discontinued last year due to funding limits.

ARPA Flex spending options will not be effective until the U.S Treasury Department issues guidance or a regulation, which is expected by the end of February 2023. As soon as guidance is issued MMA Legal Services will update our American Rescue Plan Act Information Packet, located in the “members’ area” of our website (www.memun.org). (By S.F.P.)

The 2023 federal budget package (P.L. 117-328) includes a provision entitled the “State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act,’’ (or “ARPA Flex” as we like to call it).

ARPA Flex provisions will provide municipalities new options when using their Coronavirus State and Local Fiscal Recovery Funds (a.k.a. “ARPA” funds), including: (1) providing emergency relief from natural disasters, including temporary emergency housing, food assistance, financial assistance for lost wages, or other immediate needs; (2) spending on eligible transportation infrastructure projects; and (3) spending on programs, projects, or services that would also be eligible under HUD’s CDBG program. The amount a grantee may spend on these new purposes is capped at $10 million or 30% of the total ARPA grant amount, whichever is larger. At this time, we have no other details on eligible projects.

The law also authorizes the U.S. Treasury Department to restore live technical assistance to grantees, which had been largely discontinued last year due to funding limits.

ARPA Flex spending options will not be effective until the U.S Treasury Department issues guidance or a regulation, which is expected by the end of February 2023. As soon as guidance is issued MMA Legal Services will update our American Rescue Plan Act Information Packet, located in the “members’ area” of our website (www.memun.org). (By S.F.P.)