Want Flexibility on ARPA Spending? Contact Your Congressman

In late October, the U.S. Senate unanimously passed the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act (S. 3011/H.R. 5735). It was introduced to the House on November 1 but has not seen further movement since. Many counties have struggled when determining how to use these funds based on the current limitations. The passage of this bi-partisan bill would be a game changer for counties here in Idaho, but it’s going to take county officials vocalizing support of the bill to help it progress. 

The Idaho Association of Counties sent a letter to Representative Mike Simpson and Representative Russ Fulcher encouraging their support, but hearing from individual counties regarding why this is needed would go a long way. Here is a template NACo created that may be used to compose a personalized letter to send to your Representative. We urge you to reach out as soon as possible since the legislative session will end this month.

What the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act (S. 3011/H.R. 5735) Entails

The bill would allow counties to use $10 million or 30 percent of their ARPA Recovery Fund allocation for a wide variety of transportation and infrastructure projects. Counties would also be allowed to use Recovery Funds to meet local match requirements for a variety of Federal Programs (For an in-depth analysis of how funds could be used for transportation and infrastructure projects, see NACo’s Legislative Analysis.)

This bill would allow counties to consider up to $10 million of their ARPA Recovery Funds as if it were “lost revenue” which could be used for government services with the same restrictions that “lost revenue” has under the current U.S. Treasury Guidance (For in-depth information about “lost revenue” use and restrictions, see NACo’s Legislative Analysis.)

It would also provide clarification regarding implementation of the Local Assistance and Tribal Consistency Fund, also known as the Wyden Amendment, including defining an “eligible revenue share county” as qualifying for direct county aid using the same formula that is used for Payment in Lieu of Taxes (PILT) payments.

The bill would also allow counties to use ARPA funds for emergency relief services due to natural disasters as well as the negative economic effects of natural disasters.

This bill has tremendous benefits that will directly impact Idaho counties. Please use NACo’s template to reach out to your Representative before the end of December to voice your support of this important bill.

*Source NACo