The U.S. Department of the Treasury has released new guidance (PDF) on how communities should prepare to close out their American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) awards.
Per statute, recipients must continue reporting on their SLFRF projects through 2027, even after funds are fully spent. However, Treasury has now introduced an early closeout option, a long-requested capability that NLC has consistently advocated for on behalf of municipalities nationwide.
As a reminder, closeout is not the same as being administratively closed in the reporting portal. Administrative closure occurs when a municipality misses a reporting deadline, and Treasury staff automatically lock the portal for that period. Past reporting portals cannot be reopened, but all reports are cumulative and continue forward.
Who Can Closeout Early?
Recipients that have reported fully expending their SLFRF allocations may be invited to close out their awards ahead of the official end of the award period. As of September 2025, Treasury has begun initiating this process to a small group of communities on a rolling basis, notifying recipients directly with instructions.
If your community has not received communication from Treasury, the closeout option is not yet available. Treasury is expected to open this capability to more municipalities during the 2026 reporting cycle.
Steps to Prepare for Closeout
To ensure your community is ready for closeout, review Treasury’s Award Closeout Preparation Checklist (PDF) and confirm the following:
- Funds are fully obligated and spent: Verify that all your SLFRF funds are properly accounted for in the SLFRF Reporting Portal.
- You can download your 2025 report to check that all your funds were properly obligated and spent in the “Compliance Reports” section.
- Active SAM.gov Registration: A municipality cannot file its final closeout report without an active SAM.gov account.
- SAM.gov accounts must be renewed annually once activated.
- To renew the registration, refer to GSA’s renewal resource for step-by-step instructions.
- SAM.gov registration is always free. Be cautious of third-party sites or renewal emails not ending in @sam.gov.
- Updated Points of Contact: Confirm your SLFRF Reporting Portal contacts are current by logging into:
- Portal.treasury.gov/compliance (if using Login.gov).
- Portal.treasury.gov/cares (if using ID.me).
- We encourage you to check this as soon as possible and ensure that if there is a staffing change that the portal be updated ASAP to reflect that.
- Treasury has step-by-step instructions (PDF) and a video that demonstrate how to change roles.
- Organized financial documentation: Maintain accessible financial records that clearly demonstrate your SLFRF funds were properly obligated and spent. Remember that audits may occur up to five years after closeout.
Treasury will continue expanding early closeout opportunities. In the meantime, communities should prepare by confirming their compliance and administrative readiness.
Reach Out
Have questions? Send us an email!
About the Author
How Cities Can Sustain Benefits Access for Young Adults
- Andrew Moore
- Patrick Hain
- Stephanie Martinez-Ruckman
From Congress to Community: A Foundation for Rancho Cordova’s Youth
- Dante Moreno
From Congress to Community: Investing in Tampa’s Seniors and Neighborhoods
- Dante Moreno
From Congress to Community: City of Wasilla’s Path to Modernized Wastewater Infrastructure
- Dante Moreno
From Congress to Community: City of Mesa’s Downtown Small Business Revitalization and Rehabilitation Program
- Dante Moreno
How Localities are Planning for the End of the American Rescue Plan Act
- Jordyn Taylor