Today, Rep. Haley Stevens (D-MI) announced that the U.S. Department of the Treasury established their Final Rule for how municipalities can use desperately needed American Rescue Plan Act funds. The Coronavirus State and Local Fiscal Recovery Funds, a part of the American Rescue Plan, delivers $350 billion to state, local and tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency.
“The process for claiming revenue loss under the Interim Final rule was unintentionally restrictive to communities in Michigan’s 11th District,” said Rep. Haley Stevens (D-MI). “The Treasury listened to the 1,500 concerns and questions raised by municipalities across the U.S., and reduced the burden placed on smaller communities by allowing for more flexible implementation of ARPA dollars. This funding is a lifeline for SE Michigan communities, and I thank the Treasury for considering municipalities like ours in their Final Rule.”
“The new directives from the Department of Treasury exceeded our expectations. They respect local governments regardless of their size, giving Plymouth Township the flexibility we need to make priority investments in our community” said Kurt Heise, Plymouth Township Supervisor. “I want to thank Congresswoman Stevens and her staff for listening to our concerns and making surethey were addressed in Washington.”
The Rule now allows municipalities to choose a flat rate revenue loss amount of $10 million, rather than having to calculate their revenue loss based on the Treasury’s formula. Each municipality's ARPA allocation amount remains the same, but this option allows them to use any or all of the allocation for “any service traditionally provided by a government,” up to the full amount of their ARPA allocation or $10 million, whichever is less.
Congresswoman Stevens wrote to the U.S. Department of the Treasury in October, advocating for flexibility on behalf of municipalities in SE Michigan regarding how they can use their allocated ARPA funding to replace lost public sector revenue.
Original source can be found here.
