American Rescue Plan Act resources for state and local governments
EY can help governments develop and implement ARPA investment strategies and manage its complex compliance and reporting requirements.
On March 11, President Biden signed the $1.9 trillion American Rescue Plan Act of 2021 (ARPA). The ARPA plan includes $350 billion in direct recovery funding that will flow to virtually every state, local, territorial and tribal government, plus some 180 more funding streams for a broad array of programs, from childcare to rental assistance to transportation.
This page is intended to be a resource for governments looking to make the most of this unprecedented opportunity. Here you will find up-to-date federal guidance, as well as our latest thinking, leading practices and lessons learned.
What EY can do for you
We understand the priority is to get funds into the hands of those who need it most and where those funds will have the greatest impact. Our approach balances speed with sustainability and compliance to build the platform for APRA funds administration. We suggest that governments start with an ARPA Financial Blueprint to guide spending, leverage all available resources, and maximize impact. You can find more about the Blueprint below.
State and Local Fiscal Recovery Funds compliance checklist
- Perform an assessment of pandemic impacts and community needs. Entities have considerable discretion to use the award funds consistent with the four statutory categories outlined by the American Rescue Plan Act, but they must demonstrate that funded projects address community needs in proportion to the pandemic’s impacts.
- Assess current internal controls and record-keeping capabilities. Entities will be subject to compliance requirements related to the internal controls life cycle, including assessment, design, and evaluation and monitoring.
- Identify potential subrecipients subject to additional risk monitoring. Entities will be required to assess and evaluate the risk of noncompliance based on a variety of factors, including prior experience with federal funds and audits.
- Assess compliance with the Civil Rights Act of 1964. One of the main objectives of the act is to provide support to the minority communities that are most significantly impacted by the pandemic. The act requires a narrative describing compliance with the Civil Rights Act of 1964.
- Understand the unique reporting requirements (including programmatic data and performance indicators) for each expenditure category.
- Calculate your revenue loss according to the U.S. Department of the Treasury’s formula and definitions, including both actuals through December 2020 and projections for the remaining periods. Revenue replacement is the most flexible funding provided for in the State and Local Fiscal Recovery Funds Program.
- Perform a crosswalk of any local procurement policies to 2 CFR Part 200 to make certain that the procurement department is prepared to properly expend federal grant dollars.
- Make sure all key personnel are trained on the State and Local Fiscal Recovery Funds requirements and Uniform Guidance.
- Understand the tax offset provisions of the State and Local Fiscal Recovery Funds, which prohibit states from using funds to replace revenue loss caused by tax reductions or budget cuts.
EY Grants Accelerator (EYGA)
EYGA has helped governments deliver COVID relief grants and assistance to businesses, individuals, and others with ease, speed, and integrity. It is technology that can be quickly adapted, deployed, and scaled to meet unique client and community needs. EYGA makes pandemic recovery resources accessible, accountable, and auditable – and can even be used as a platform for ARPA-compliant financial and performance reporting.
Other helpful resources