Federal Proposal Would Expand Eligible ARP Expenditures

Proposed, but not yet adopted.

A bill that would allow local governments to spend federal funds received under the American Rescue Plan (ARP) on certain public transportation and highway projects passed the U.S. Senate unanimously last week.

S. 3011 – the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act would permit local governments to spend the greater of $10 million or 30 percent of their federal allocation under the ARP on disaster relief, housing, community development, and other investments, including infrastructure projects that are eligible under a number of federal highway and transit programs.

A summary of the bill is available here.

S 3011 is not yet law and now goes to the U.S. House for further consideration. However, the prospect of expanded ARP eligibility, along with the pending state budget and the U.S. Treasury’s forthcoming final rule regarding these funds, may provide additional incentive for municipalities to wait before allocating all of their ARP dollars.

As always, if you have any questions or concerns regarding ARP expenditures or reporting requirements, please contact us at arp@nclm.org.