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Updated June 30, 2023 (Originally Posted March 14, 2021)

Resources for State & Local Fiscal Recovery Fund (SLFRF)

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County Investment Examples
(Provided by NACo)
Direct Funding to Counties
(From U.S. Treasury)
Grant Funding Reserved for Counties
(By the State – HB 632)
Grant Funding Reserved for Cities
(By the State – HB 632)
Second Tranche Payments
(Provided by NACo)

Direct Funding to Counties from US Treasury

Montana’s counties are set to receive $207,597,597 in DIRECT FUNDING from U.S. Treasury through the American Rescue Plan Act (ARPA). We’ve included various resources above to aid our members in navigating the waters to apply for and receive their funding from Treasury. Counties ARE NOT required to go through the State of Montana to receive their funding. Cities and towns with populations under 50,000 (non-entitlement units [NEUs]), must go through the State.

These DIRECT dollars are NOT to be confused with the $150 million in grant dollars set aside for local government (counties, cities, and towns) through HB 632, which passed through Montana’s Legislature in 2021. We’ve included more information regarding HB 632 and the the grants below.

Please use the resources above to  complete the enrollment process as identified by Treasury to receive your DIRECT funding from Treasury.

And if  You Have Any Questions, Contact Us! | (406) 449-4360

Montana Legislative Action: HB 632 & Grants

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:

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.

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.

Apply for HB 632 Grants

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

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.

Lost on What ARPA Is? Click Here!

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)
  • 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.

Questions? Contact Us! | (406) 449-4360