ARPA Adventures: 2022 and Beyond.

• Author: Brock, Emily Swenson
• Position: FEDERAL UPDATE

2020 to 2022 was a frenzied period in Congressional history. The 116th Congress was focused on swiftly responding to the dynamic threat of C0VID-19 while fighting to keep standard Congressional business moving. The Families First Coronavirus Relief Act, the CARES Act and HR133, The Stimulus Omnibus of 2030 were products of bipartisan and bicameral partnerships to secure trillions of dollars for individuals and communities in the United States to overcome the effects of the COVID-19 pandemic. What was normally one of the most important functions performed by Congress-funding the federal government--was dwarfed and frustrated by legislators' efforts to address the ongoing public health crisis. As a result, Congress left some necessary stimulus on the table for 2021.

2021 marked not only the beginning of the 117th congress, but also the first year of the Biden Administration. The new administration entered with the swift passage of the American Rescue Plan Act (ARPA), the $1.2 trillion plan that includes the Coronavirus State and Local Fiscal Recovery Fund, which provides $350 billion to states and local governments--an acknowledgment that states and local governments were shouldering much of the pandemic's most challenging fiscal problems. And while the law provided a good deal of stimulus relief, it left large gaps in specific detail regarding distribution methodologies, eligible expenditures, and reporting and compliance responsibilities. Throughout 2021, the U.S. Department of the Treasury filled the gaps between the law and the administrative rule. In early 2022, the Treasury Department provided the final rule and reporting and compliance guidance that followed the final rule.

Despite reaching nearly the halfway point of ARPA's covered period, many direct recipients have not yet spent their ARPA funds. Some prime recipient communities are just beginning to detail their spending plans or may just be in the early stages of planning.

This is largely because many communities were waiting for the publication of the final rule. While the interim final rule provided some clarity and established processes, these communities were mostly trying to diminish any risk they would incur if any components of the administrative rule were to change.

During this rule finalization process, GFOA's Federal Liaison Center provided the Treasury Department with anecdotes and aggregated information about types of spending, assisting the Treasury with creating key...