State and local governments across the United States have been
overcome with analysis paralysis when it comes to how to spend
their American Rescue Plan Act (ARPA) funding, leaving potentially
hundreds of millions of dollars sitting on the sidelines that could
be rapidly deployed to improve their communities.
Signed into law on March 11, 2021, ARPA created the $350 billion
Coronavirus State and Local Fiscal Recovery Funds, which may be
used by state and local governments to respond to the COVID-19
public health emergency or its negative economic impacts. Since
ARPA passed, the Treasury Department has released a plethora of
guidance outlining acceptable uses of ARPA funding and the
accompanying reporting requirements. This article examines some of
the more novel uses for ARPA funds provided in the guidelines,
outlines some of the misconceptions regarding ARPA funding, and
details some of the more daunting aspects of using these funds.
