American Rescue Plan Act (ARPA)

With Montana receiving an estimated $2.8+ billion coming into its coffers from the American Rescue Plan Act, the Legislature passed legislation to appropriate the funds in less than 35 Legislative Days: HB 632, an Act implementing the American Rescue Plan Act.

Through HB 632, the Legislature created four Advisory Commissions to oversee the various pots of money. They will be reviewing applications for funding as well as providing recommendations to the Executive on which projects should be funded:

• Infrastructure Advisory Commission (Water & Sewer)
• Communications Advisory Commission (Broadband)
• Economic Transformation & Stabilization & Workforce Development Advisory Commission
• Health Advisory Commission

The Legislature set aside a minimum allocation of grant money for local governments to utilize for water and sewer projects: $150 million. The counties will be able to utilize 38% ($56,756,270), while the cities and towns are eligible for 62% ($93,243,729.72).

The caveat is that if a local government is awarded grant funds, the amount of the grant is reduced by 20% if that local government or any of its authorized agents have health regulations related to COVID-19 that are more strict than those imposed by the state in effect at the time the grant is awarded.

• Grant Funding Reserved for Counties
• Grant Funding Reserved for Cities/Towns

IMPORTANT NOTE: Montana Counties will receive approximately $207 million in DIRECT FUNDING from US Treasury. Use the links at the top of this post to see your allocations and request funding.

Below are links to the various grant programs created by HB 632.

• Infrastructure Grants: Water & Sewer
  – Resolution Template (for county to distribute money to another local government entity within the county)
• Communications Grants: Broadband
• Economic Transformation & Stabilization & Workforce Development Grants
• Health Grants
• Click Here for Grant Program FAQs.

IMPORTANT NOTE: Montana Counties will receive approximately $207 million in DIRECT FUNDING from US Treasury. Use the links at the top of this post to see your allocations and request funding.

The latest COVID-19 relief package, signed into law by President Joe Biden on March 11, 2021, provides $1.9 trillion in mandatory funding, program changes and tax policies aimed at mitigating the continuing effects of the pandemic.

The American Rescue Plan act (ARPA or ARP) builds upon previously enacted aid measures in 2020:

• The year-end spending and aid package
• The Coronavirus Aid, Relief, and Economic Security (CARES)
  Act
• The Families First Coronavirus Response Act (FFCRA)

State & Local Government Funding

ARPA Provides $350 billion total to help states, counties, cities and tribal governments across the United States cover increased expenditures, replenish lost revenue and mitigate economic harm from the COVID-19 pandemic.

State and local government recipients could use the funds to cover costs incurred by Dec. 31, 2024. The funds would be distributed in two tranches, with 50% delivered no later than 60 days from the date of enactment, and the remainder delivered no earlier than one year later. States would have to distribute funds to smaller towns within 30 days of receiving a payment from the department. States that miss the deadline would have to pay back any undistributed funds. A town cannot receive more than 75% of its budget as of Jan. 27, 2020. The Treasury Department could also withhold up to half of a state or territory’s allocation for as long as 12 months based on its unemployment rate and require an updated certification of its funding needs.

States and the District of Columbia:$195.3 Billion

• $25.5 billion would be equally divided to provide each state a minimum of $500 million.
• $169 billion would be allocated based on the states’ share of unemployed workers over a three-month period, from October-December 2020.
• $1.25 billion in additional aid for the District of Columbia.

Local Governments:  $130.2 Billion
Divided Evenly Between Non‐county Municipalities & Counties

• $65.1 billion in direct federal aid to all counties based on the county share of the U.S. population. Counties that are Community Development Block Grant (CDBG) recipients (urban entitlement counties) will receive the larger of the population‐based share or the share under a modified CDBG allocation formula. Treasury shall allocate the first tranche of payments within 60 days of enactment.
• $65.1 billion to cities and other non‐county municipalities
  – $45.6 billion in direct federal aid for metropolitan cities with populations of at least 50,000  using a modified CDBG formula.
  – $19.5 billion for towns with fewer than 50,000 people based on each jurisdiction’s percentage of the state’s population, not exceeding 75 percent of its most recent budget as of January 27, 2020. Aid is distributed through the states.

U.S. Territories:  $4.5 Billion

Tribal governments:  $20 Billion

Provides $10 billion for a Coronavirus Capital Projects Fund

• to carry out projects to support work, education and health monitoring during COVID-19.

Utilize the links at the top of this post for more information, including county-by-county estimated allocations for Montana.