American Rescue Plan Act/Coronavirus State and Local Fiscal Recovery Funds

Signed into law by President Joe Biden in March 2021, the American Rescue Plan (ARP) created the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF). These funds are meant to provide relief and assistance to state, local, and Tribal governments in responding to the impacts of the COVID-19 pandemic to support a strong, equitable economic recovery. As of March 2023, 80% of the $1.9 trillion economic stimulus bill had been spent, meaning there is still time to receive funding before the December 31, 2024 obligation deadline. After this date, jurisdictions will have until December 31, 2026 to spend all funds.

There is currently new guidance pending on how to use and access the remaining funds, and RTC will provide an update when this guidance is finalized. In the meantime, here are a few things to note from the Interim Final Rule, which is effective upon publication.

• There is a $10 million limit for Surface Transportation and Title I projects.
• Trails and bicycle and pedestrian infrastructure are eligible for funding.

Eligibilities

Funds are flexible within broad categories to help meet unique local demands felt by state and local governments in responding to the coronavirus pandemic:

• Supporting urgent COVID-19 response efforts and continuing to decrease the spread of the virus
• Replacing lost revenue for eligible state, local, territorial, and Tribal governments to strength support for vital public services and help retain jobs
• Supporting immediate economic stabilization for households and businesses
• Addressing systemic public health and economic challenges that have contributed to the inequal impact of the pandemic

Resources

Your local government or governor’s office can provide more information on fund allocation and eligible sources. In addition, the Treasury Department offers guidance on funding allocation.

RTC has background and information to help you access Coronavirus State and Local Fiscal Recovery Funds and make the case about your trail’s eligibility.

There is new guidance pending which will provide additional information on accessing and utilizing remaining funding. You can view the interim rule here.