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 Recover funds (SLFRF).

This funding was distributed in two phases. The City received the first allocation of funds, totaling $4.1 million in July 2021, and the second allocation was received in July 2022. 

The U.S Department of Treasury has providing guidance on the types of projects that can be funded using these funds, and the 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.

 

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 

 

The American Rescue Plan Act funds are to be used in accordance with applicable local, state, and federal guidelines, the award terms and conditions, and supplemental documents produced by the U.S. Department of the Treasury.

If you have any questions of concerns you can contact us at ARPA@frostburgcity.org.

  • Printer-friendly version