Where can we look to find out when funds will be available for municipalities, Entitlement Communities, and Non-Entitlement Communities (who will receive their funding from their states)?

The American Rescue Plan Act (“ARP”) established the Coronavirus State Fiscal Recovery Fund (“CSFRF”) and the Coronavirus Local Fiscal Recovery Fund (“CLFRF”) to provide flexible funding to a broad range of recipients, including:

• “Metropolitan cities” (generally cities with populations of 50,000 or greater), and
• Smaller “non-entitlement units” (generally local governments with populations of less than 50,000).

Metropolitan Cities

The U.S. Department of Treasury (“Treasury”) has posted detailed information on how to request funds on their website at: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-fund/request-funding.

Treasury will directly disburse funds to eligible cities. While local governments designated as non-entitlement units are eligible to receive ARP funds, they will receive funding from their applicable state government rather than from the Treasury Department.

Treasury’s list of metropolitan cities eligible for direct disbursements and their allocation amounts is available here: https://home.treasury.gov/system/files/136/fiscalrecoveryfunds-metrocitiesfunding1-508A.pdf.

Municipalities that are eligible for direct disbursement, may request funds through the Treasury Submission Portal. In order to apply, an authorized representative will need to provide the following information:

• Jurisdiction name, taxpayer ID number, DUNS Number, and address
• Authorized representative name, title, and email
• Contact person name, title, phone, and email
• Funds transfer information, including recipient’s financial institution, address, phone, and routing number and account number
• Completed certification document (to be signed by the authorized representative)

Municipalities will need to obtain a free DUNS number to register. An entity that does not have a valid DUNS number can visit https://fedgov.dnb.com/webform/ or call 1-866-705-5711 to begin the registration process.

Municipalities will also need an active registration with the System for Award Management (SAM) database at SAM.gov. An entity that does not have an active SAM registration can visit SAM.gov to begin the free entity registration or renewal process, which may take up to three weeks. 

Jurisdictions must submit a request to receive ARP funding even if they have previously applied for other programs through the Treasury Submission Portal. Eligible jurisdictions will receive communications regarding the status of their submission via the email address provided in the Treasury Submission Portal.

For additional information from the Treasury on requesting funds and the Treasury Submission Portal, recipients can access the Treasury’s “Request Funding” website: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-fund/request-funding.

Disbursements will be distributed to Metropolitan Cities and states in two tranches:

First Tranche

• Were disbursed within 60 days of enactment of the bill (May 11, 2021)
• Will equal 50% of the total allocation
• States must disburse funds to recipient cities within 30 days of receipt unless granted an extension

Second Tranche

• Will be disbursed no earlier than 12 months after the first disbursement (no sooner than May 11, 2022)
• Will equal the remaining 50% allocation amount
• There is currently no language that specifies a deadline for states to disburse funds to recipient cities

Non-Entitlement Units of Government

For non-entitlement units of local government, which generally include local governments that serve populations less than 50,000, ARP funds will flow through their respective state governments. State governments will receive a specific allocation of these funds from Treasury for this purpose and will be responsible for disbursing these funds to non-entitlement units within their state. Funding for State governments will be split “into two equal payments for all State governments, except for States where the unemployment rate is 2.0 or more percentage points above its pre-pandemic level.”[1] More information about which State governments have received split payments can be found at: https://home.treasury.gov/system/files/136/split-payments-to-states-public1-508A.pdf. The funding split is subject to change as new State unemployment data is released.[2] The unemployment exceptions to State governments split funding does not impact the timeline for non-entitlement units receiving funding from their respective State governments.[3] Non-entitlements units should consult with their respective States for additional information on their process for disbursing funds. In addition, each non-entitlements unit must have a valid DUNS number to comply with the Fund’s reporting requirements. If your entity does not have a valid DUNS number, you can begin the registration process at https://fedgov.dnb.com/webform or call 1-866-705-5711.

Lastly, non-entitlement units of local government can find additional information published by Treasury here: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-fund/non-entitlement-units

Last Revised: November 12, 2021