What are ARPA funds?
ARPA funds are $350 billion in emergency funding for state, local, territorial, and Tribal governments created by the American Rescue Plan Act of 2021 in order to address the rising costs and diminished revenues resulting from the COVID-19 pandemic. ARPA funding included:
- $195 billion for states
- $130 billion for local governments
- $20 billion for tribal governments
- $4.5 billion for territories
These funds were intended specifically to support the public health response and lay the foundation for a strong and equitable economic recovery. Funding was set to assist governments in covering costs incurred from the public health emergency and to provide support recovery through assistance to households, small businesses and nonprofits, impacted industries (especially tourism and hospitality), and essential workers. ARPA funding also provided resources for governments to invest in infrastructure, including water, sewer, and broadband services. Finally, all ARPA funding needs to be spent in its entirety by the end of 2024. The ARPA also established defined reporting requirements for all requesting entities.