American Rescue Plan Act

On May 10, the U.S. Department of Treasury released guidance on the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) included in the American Rescue Plan Act. The CSLFRF includes $130.2 billion in direct, flexible aid to local governments in America, as well as other crucial investments in local communities. Each county government will receive a split of the $65.1 billion.

NOTE: Counties will not have to suballocate their funding to cities and towns or ask states for the suballocations.  

American Rescue Plan Act
U.S. Department of Treasury (Local Fiscal Recovery Funds)
Interim Final Rule for Fund Guidance

Coronavirus State and Local Fiscal Recovery Funds – Quick Reference Guide





U.S. Treasury Department (as of June 24, 2021)
NACO Overview for America's Counties (updated May 24, 2021)

IACBM ARPA Guidance Webinar – June 21, 2021
ARPA Guidance Presentation Slides (GFOA) – June 21, 2021
IACBM ARPA Guidance Webinar – May 17, 2021
ARPA Guidance Presentation Slides (GFOA) – May 17, 2021      

Key Provisions for County Governments
The American Rescue Plan provides $350 billion dollars in emergency funding for state, local, territorial, and Tribal governments to remedy this mismatch between rising costs and falling revenues. This includes:

• $195 billion for states, (a minimum of $500 million for each State)
• $130 billion for local governments
   – $65.1 billion for counties
   – $45.6 billion for metropolitan cities
   – $19.5 billion for towns with fewer than 50,000 people
• $20 billion to tribal governments
• $4.5 billion to U.S. territories

The Rescue Plan will provide needed relief to state, local, and Tribal governments to enable them to continue to support the public health response and lay the foundation for a strong and equitable economic recovery. In addition to helping these governments address the revenue losses they have experienced as a result of the crisis, it will help them cover the costs incurred due responding to the public health emergency and provide support for a recovery – including through assistance to households, small businesses and nonprofits, aid to impacted industries, and support for essential workers. It will also provide resources for state, local, and Tribal governments to invest in infrastructure, including water, sewer, and broadband services.    

Allocations by County
The $65.1 billion will be allocated based on the county’s population. Counties that are CDBG recipients will receive the larger of the population or CDBG-based formula.
Illinois Counties (102)

Eligible Uses of Funds

  • Revenue replacement for the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency, relative to revenues collected in the most recent fiscal year prior to the emergency,
  • COVID-19 expenditures or negative economic impacts of COVID-19, including assistance to small businesses, households, and hard-hit industries, and economic recovery,
  • Premium pay for essential workers,
  • Investments in water, sewer, and broadband infrastructure. 

Restricted Uses of Funds

  • Funds allocated to local governments cannot be used directly or indirectly to offset tax reductions or delay a tax or tax increase;
  • Funds cannot be deposited into any pension fund. 

NOTE: Funding must be spent by the end of calendar year 2024.

Legislative Analysis 
National Conference of State Legislatures (NCSL)
National Association of Counties (NACo)
National League of Cities (NLC)

Federal Sources
The White House
U.S. Department of the Treasury
Federal Transit Administration

Legal Associates
• Holland & Knight – American Rescue Plan Act Summary