The State of Vermont Department of Finance and Management has opened a web portal where Vermont municipalities may request their share of $58,788,245 in American Rescue Plan Local Fiscal Recovery Funding. Every city and town in Vermont, and many villages, must take action in the next 30 days to ensure their community receives this funding.
The portal does not include $121,202,550 in County Funding destined for Vermont. Municipalities may need to take additional steps in the near future to access their share of the county funding, should it become available.
ARPA included language that directed states without general units of county government to distribute this $121,202,550 to municipalities using the same formula used to distribute the Non-Entitlement Unit of Government funding. However, the Treasury Department unexpectedly ruled that Vermont does have general units of county government, and currently intends to distribute the county funding to Vermont’s county governments (judicial and law enforcement). We anticipate many if not all Vermont counties will return most of this funding to the state. However, during the 2021 Legislative session, the Vermont Legislature included a provision in the budget that requires the Legislature to determine how to spend any county ARPA funding returned to the state. The U.S. Treasury Department’s determination that Vermont has county government and the Legislature’s action may delay the final disposition of the $121,202,550 that had been expected by Vermont’s municipalities.
VLCT, Vermont’s Congressional Delegation and Governor Scott’s Administration have petitioned Treasury to change their determination that Vermont has general units of county government.
Municipalities are encouraged to consult the Resources and Information section of the VLCT ARPA website at vlct.org/arpa for more information. This section includes a checklist provided by the Treasury Department that will help communities prepare to use the State of Vermont portal, the federal rules and regulations a community must agree to when requesting the funding, and more.