Are cities required to verify lawful presence when ARP funds are used for programs providing services to community members?

The American Rescue Plan Act of 2021 (“ARP”) provides Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) to alleviate the negative public health and economic impacts of the COVID-19 public health emergency on communities. The U.S. Department of the Treasury’s (“Treasury”) Final Rule identifies populations considered to have been “impacted” or “disproportionately impacted” by the pandemic, allowing CSLFRF recipients to respond to a broad set of households and entities without requiring additional analysis.[1]

The Final Rule does not specify whether a municipality must verify the lawful presence of community members being served by CSLFRF-funded programs. Treasury allows for the broad use of CSLFRF funds, with a great deal of flexibility, as long as the funds are used to address the negative public health and economic impact of the COVID-19 public health emergency.

Although the Final Rule does not explicitly state that municipalities must verify recipients’ lawful presence, if a program serves members of an impacted or disproportionately impacted community and responds to the negative economic impact of the COVID-19 public health emergency, it is likely an allowable use of funds.

Last Updated: May 30, 2022