Choosing the Standard Allowance for ARPA Reporting

Cities, towns and villages that received American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) are required to meet reporting deadlines and requirements set by the U.S. Department of Treasury. The first annual project and expenditure report for non-entitlement units of local government (NEUs) is due April 30, 2022. 

Here are three easy steps every NEU should know if using the standard allowance of up to $10 million of revenue loss that can be used for government services. 

  1. In Treasury’s final rule, local governments can choose the standard allowance of up to $10 million in revenue loss regardless of their actual loss of revenue. However, the standard allowance cannot exceed a local government’s grant allotment under the State and Local Fiscal Recovery Fund (SLFRF). A local government can spend these funds on government services, which includes services ranging from road construction to public safety to supporting schools. 
  1. Before April 30, 2022, every NEU will need to file a report with the U.S. Department of Treasury that list their expenditures and obligations for each project they have undertaken with SLFRF funding as well as a brief 50—250-word description. A project is a new or existing eligible government service or investment funded in whole or in part by SLFRF funding.  
  1. A local government will certify that they are choosing the standard allowance of up to $10 million and file the report.  

If a NEU chooses to use the standard allowance, it will streamline the process of reporting and compliance. If an NEU does not choose the standard allowance, it will need to classify its projects under one of 83 expenditure categories as outlined by the U.S. Treasury.  

To learn more about reporting and compliance, NEUs can view this webinar produced by Treasury, as well as download the presentation

For questions about the Treasury Submission Portal or for technical support, please e-mail covidreliefITsupport@treasury.gov.

For general questions about the program, please e-mail SLFRP@treasury.gov.

About the Author

Michael Gleeson

About the Author

Michael Gleeson is the Legislative Manager for Finance, Administration and Intergovernmental Relations on NLC’s Federal Advocacy team.