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Information and guidance on the details of the ARP are evolving The Municipal Association of SC is continuing to learn about and evaluate the ARP as the federal government releases details.
The Association recommends that municipal officials carefully review the information below and closely consult with their municipal attorneys.
The U.S. Department of Treasury has
released guidance pertaining to the use of funds. Please note that spending ARP funds on unauthorized uses could result in a city or town having to repay those funds to the federal government.
How will the money be allocated?- $45.57 billion is allocated to metropolitan cities, classified as having populations of at least 50,000.
- $19.53 billion is allocated to non-entitlement cities, classified as having populations of fewer than 50,000.
How were allocations determined?
- Allocations for metro cities were based on a modified Community Development Block Grant formula that used population size, poverty rates and measures of housing instability to prioritize need.
- Allocations for non-entitlement cities were based on population size to prioritize simplification. Allocations were capped at 75% of the city’s most recent pre-pandemic budget as of January 27, 2020.
When can cities and towns expect to receive funds?
- Metropolitan cities can request their allocations from the U.S. Treasury Department's Submission Portal.
- Non-entitlement units of government that have submitted their required contact information to the Municipal Association will receive a unique link from Guidehouse, the state's ARP contractor, to access the ARP portal.
- For assistance navigating the portal, the Department of Administration has provided an ARP portal user guide.
Can the state refuse to distribute funds to non-entitlement cities?
No. If funds are not allocated to local governments within 120 days from the state’s receipt of them, the law contains a penalty that makes the received funds a debt of the state owed to the federal government.
What are the allowable uses for these funds?
The funds may be used to:
- Respond to the COVID-19 public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel and hospitality.
- Respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work.
- Provide government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency.
- Make necessary investments in water, sewer or broadband infrastructure.
Funds may not be used to cut taxes.
Recipient governments can transfer funds to private nonprofit organizations, public benefit corporations involved in the transportation of passengers or cargo, or special-purpose units of state or local government.
Recipient governments must provide periodic reports to the Treasury Department with a detailed accounting of the use of funds. Funds can be recouped by Treasury if the recipient does not comply with the eligible uses listed above.
How long does my city or town have access to the funds?
Funds must be obligated by December 31, 2024 and spent by December 31, 2026.
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Ensure that you have a valid DUNS number.
Issued by Dun & Bradstreet, a DUNS number is a unique nine-character number used to identify an organization. The federal government uses the DUNS number to track how federal money is allocated. A DUNS number is required prior to registering with the SAM database, which is outlined below. Registering for a DUNS number is free of charge.
If your city does not have a valid DUNS number, please visit https://fedgov.dnb.com/webform/ or call 1.866.705.5711 to begin the registration process. A DUNS number can be created in one business day.
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Ensure that you have an active SAM registration.
The System for Award Management is the official government-wide database to register with in order to do business with the U.S. government. All Federal financial assistance recipients must register on
SAM.gov and renew their SAM registration annually to maintain an active status to be eligible to receive Federal financial assistance. There is no charge to register or maintain your entity SAM registration.
If your city does not have an active SAM registration, please visit, SAM.gov to begin the entity registration or renewal process.
Please note that SAM registration can take up to three weeks; delay in registering in SAM could impact timely payment of funds.
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Gather your payment information, including:
- Entity Identification Number (EIN), name, and contact information
- Name and title of an authorized representative of your city
- Financial institution information (e.g., routing and account number, financial institution name and contact information)