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PA doles out final payments of $980M of Covid ARAP freebies to local municipalities

(Harrisburg, PA) – Pennsylvania Treasurer Stacy Garrity and Acting Secretary of the Department of Community and Economic Development Neil Weaver have announced final payments under the American Rescue Plan Act’s (ARPA) Coronavirus Local Fiscal Recovery program, totaling more than $490 million, have been sent to qualifying Pennsylvania municipalities.

“These funds will help communities across Pennsylvania as they continue to recover from the negative economic effects of the pandemic,” Treasurer Garrity said. “Local leaders will be able to use the money for such needs as making critical investments in infrastructure, supporting local households and businesses, and assisting essential workers. I’m pleased that our team at Treasury was able to work with DCED and Acting Secretary Weaver to make sure these funds were distributed quickly and efficiently.”

 Pennsylvania State Treasurer, Stacy Garrity

 

Earlier this month, Governor Tom Wolf announced that the funds would be distributed to the eligible local governments that originally requested and received the first round of funding in 2021.

 

“This funding provides critical support to communities across the commonwealth for many important projects that will improve the lives of Pennsylvanians,” said Acting Secretary Weaver. “DCED is pleased to work with the Treasury to get these dollars to the eligible municipalities, and looks forward to seeing the growth these funds create.”

 Pennsylvania State Treasurer, Stacy Garrity

 

Municipalities can use the local ARPA funds for a variety of projects, including:

  • Investing in water, sewer or broadband infrastructure;
  • Helping households, small businesses, impacted industries, and nonprofits recover from economic impacts;
  • Assisting essential workers;
  • Supporting public health; and
  • Replacing lost public sector revenue.

 

Eligible municipalities submitted applications to the PA Department of Community and Economic Development for approval in 2021. Qualifying municipalities received roughly half of their total payment amount in 2021, with the second and final round completed today.

 

Combined with last year’s first round of more than $489.7 million in payments, a total of about $980 million in ARPA funds has now been distributed to more than 2,400 municipalities. Payment details can be found on this interactive map on Treasury’s website.

 

ARPA gave states the responsibility to disburse these federal funds, also known as Coronavirus State and Local Fiscal Recovery Funds, to municipalities with fewer than 50,000 residents. Larger municipalities were required to apply directly to the U.S. Treasury. Information about payments to larger municipalities – and Pennsylvania’s 67 counties – can be found via links available on the Pennsylvania Treasury Department’s website.

 

Municipalities must have the ARPA funds obligated by December 31, 2024, and fully spent by December 31, 2026. Reports about the expenditure of these funds must be filed with the U.S. Treasury pursuant to the guidelines available here.