American Rescue Plan Act (ARPA)
The City of Frostburg received $8.3 million in funds as part of the American Rescue Plan Act (ARPA). ARPA is a component of the United States Department of the Treasury Coronavirus State & Local Fiscal Recovery Funds (SLFRF).
This funding was distributed in two phases. The City received the first allocation of $4.1 million in July 2021, and the second allocation was received in July 2022.
The U.S. Department of the Treasury has provided guidance on the types of projects that can be funded using these funds, and ARPA funds can be used on eligible costs incurred on or after March 3, 2021. All funds must be committed to eligible projects by December 31, 2024, and spent by December 31, 2026. The Mayor and Council obligated the City’s remaining funds in December 2024, keeping the City on track to fully expend the balance by the 2026 deadline.
Eligible Uses:
The funds can be used to:
- Replace lost public sector revenue
- Support the COVID-19 public health and economic response
- Provide premium pay for eligible workers performing essential work
- Invest in water, sewer, and broadband infrastructure
Restrictions on Use:
The funds cannot be used to/for:
- Offset a reduction in net tax revenue
- Deposits into pension funds
- Debt service or replenishing financial reserves
- Satisfaction of settlements and judgments
- Projects that conflicts with the purpose of the ARPA Statute
Use of American Rescue Plan Act (ARPA) funds must comply with applicable local, state, and federal guidelines, the award terms and conditions, and supplemental documents provided by the U.S. Department of the Treasury.
If you have any questions or concerns, you can contact us at ARPA@frostburgcity.org.
