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How may my town/city/village spend the funding?

ARPA includes four broad criteria outlining eligible uses:

  • To respond to the 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;

  • To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers;

  • For the provision of 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*; and

  • To make necessary investments in water, sewer, or broadband infrastructure.

On January 6, 2022, the U.S. Department of the Treasury issued the Final Rule that further explains eligible and ineligible uses. Recipients may also find the Overview of the Final Rule helpful,. It provides a summary of major provisions of the Final Rule for informational purposes.

* If your town, city, or village elected to the "standard allowance,"  then it may use the amount of the reduction of revenue (in most cases the full amount of award) on the "provision of government services."