American Rescue Plan Act

On May 10, 2021 the U.S. Department of Treasury released guidance on the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) included in the American Rescue Plan Act. The SLFRF 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 $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 (Final Rule)
The ruling, effective April 1, 2022, provides additional clarity and flexibility on uses, including capital expenditures and public sector hiring.
U.S. Department of Treasury (Local Fiscal Recovery Funds)

Coronavirus State and Local Fiscal Recovery Funds – Quick Reference Guide

Key Provisions and 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 work;
  • Investments in water, sewer, and broadband infrastructure;
  • Capital expenditures;
  • Public sector hiring and capacity expansion.

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.


Reporting Requirements
As a county that receives funding through ARPA, you are required to meet compliance and reporting responsibilities. On February 28, 2022, the Treasury Department released the updated Compliance and Reporting Guidance for the SLFRF program.

User Guide and Other Resources
An associated user guide with step-by-step instructions on how recipients will submit the required reports is posted in the webpage. Treasury released a recommended template for the Recovery Plan but recipients may modify as appropriate for their jurisdiction as long as it includes the required reporting elements.

Online Portal Access
Each SLFRF recipient must designate individuals to serve as its official points of contact for SLFRF reporting to the U.S. Treasury.  As a recipient you will need to designate individual(s) in your organization for each of the following three roles:  1) Account Administrator; 2) Point of Contact for Reporting; 3) Authorized Representative for Reporting.

The following two documents provide more information:

The online portal link ( will direct you to the verification website. The attached guide provides additional information and a link to detailed instructions to help you navigate the registration process.
If you need additional assistance, visit the Support website for accessing Treasury with, where you can receive technical support: If you are unable to log in to Treasury’s State, Local, and Tribal Support Portal after establishing your account, send an email to [email protected]  for assistance.

U.S. Treasury Department (as of January 2022)

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      

ARPA Resource HUBs
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