Category Archives: Federal

New Info Coming From MI Treasury on ARP Dollars for NEUs

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The Michigan Department of Treasury recently provided an update to League staff on their continuing efforts to distribute the $322 million, first-year tranche of American Rescue Plan dollars designated for Michigan municipalities that are designated as Non-Entitlement Units.  These dollars were allocated to 1,724 Michigan cities, villages, and townships and are scheduled to be distributed on a per capita basis.  To date, MI Treasury has received applications from than 1,660 eligible units, with every Michigan city having requested their funds, following the July 8th opening of Treasury’s application portal.  Treasury is anticipating being able to begin distributing funds to completed and approved applicants by the middle of September.

Treasury’s 3rd party vendor has recently begun the process of reviewing the submitted funding request applications and auditing those submissions as a precursor to distributing the funds.  As of last week, the vendor had completed the initial review of about 1/3 of the applications. Treasury’s Coronavirus Local Fiscal Recovery Fund webpage is being updated as the vendor completes their audit of applications to display the status for each application.

During this review process, a high error rate has been encountered, with many errors being relatively superficial in nature (missing or wrong signatories, missing addresses or incomplete fields, DUNS number errors, etc).  Communities with errors in their application will be asked to make corrections to their applications and resubmit in order for the funds to be disbursed.  To facilitate the necessary error corrections, Treasury’s vendor is expected to begin contacting communities by phone late this week/early next week to make those communities aware of the situation with their application.  Following this direct contact, a letter will also be issued, likely next week, with the specific errors identified and the process for any necessary corrections and resubmission.

Treasury staff will also be participating in next week’s (Sept 7th) Live with the League broadcast to provide a more detailed update and answer any questions.

Here is some additional information shared recently by the Michigan Department of Treasury:

Intended Audience: Non-Entitlement Units of local government requesting or declining Coronavirus Local Fiscal Recovery Funds under the American Rescue Plan Act (ARPA). Non-entitlement units are defined as primary local governments (e.g., cities, villages, townships) other than federally defined metropolitan cities and counties under ARPA.

The Michigan Department of Treasury is reviewing more than 1,600 applications from local units requesting or declining Coronavirus Local Fiscal Recovery Funds (CLFRF). Over 95% of local units have completed the on-line submission process.

The Department of Treasury review team has begun to examine applications. Once the review has been completed and the application is error-free, the contact person and Chief Administrative Officer (CAO) will receive an e-mail from  treas-arpa@michigan.gov.

Errors in Submission

If errors were found in the on-line submission, the review team will contact the local unit to discuss the identified errors. Additionally, a detailed e-mail will be sent from treas-arpa@michigan.gov describing the errors. Please note: to successfully request funding, a local unit will have to log back into the ELITE system portal and correct identified errors. To ensure funding, local units are encouraged to complete this within seven days of receipt of the e-mail or be at risk of not receiving funding.

To assist with understanding common errors, the Michigan Department of Treasury has created a list of common errors and how to fix them.

NEU Status

NEUs can go to the Michigan Department of Treasury’s American Rescue Plan Act (ARPA) webpage to obtain their status update through the on-line summary file. Additionally, once audits are completed, local units will be able to access all their submitted information on the Michigan Department of Treasury’s document search site.

Payment Status

Payments to a NEU will occur after all application requirements have been met and after a Michigan Department of Treasury review. The first payments are anticipated to be issued in the next three weeks based upon the information local units verified in SIGMA.  These first payments will be for 50% of the allocation amount. The second 50% payment will be approximately 12 months later. Additionally, a smaller payment will be made after the initial on-line submission period is closed. This payment is the redistribution of funds from NEU’s that were non-responsive.

Questions? Comments?

More information and resources on CLFRF are available at Michigan.gov/ARPA.

Questions regarding the CLFRF can be directed to the Michigan Department of Treasury by e-mail at Treas-ARPA@michigan.gov.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

 

Submission Portal Now Open for Michigan Communities to Receive American Rescue Plan Support

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The portal select Michigan communities are to use to obtain the American Rescue Plan funding assistance is now open. Communities classified as Non-Entitlement Units (NEUs) of Local Government must use this portal to request funding through the Coronavirus Local Fiscal Recovery Fund under the American Rescue Plan Act (ARPA). Non-entitlement units are defined as primary local governments (cities, villages, townships) other than federally defined metropolitan cities and counties under ARPA.

The Michigan Department of Treasury launched the portal this week and all non-entitlement units must complete the online process whether requesting or declining funds. NEUs are asked to make their submissions through the portal by Tuesday, July 27.

The Michigan Municipal League strongly encourages all League members to seek out this one-time federal assistance that will come in two parts over two years. The funding does not need to be allocated until the end of 2024 and doesn’t need to be fully spent until the end of 2026. This means there is time for our community leaders to be collaborative and deliberate in determining how best to invest this assistance in ways that impact our residents and businesses impacted by the coronavirus pandemic.

The League realizes that navigating this funding can be daunting, time-consuming, and overwhelming, and we’re here to help our members. We launched the ServeMICity program to help you think creatively about taking this investment to the next level and help you answer questions you may have about the American Rescue Plan funding. Together, we can chart a path forward to stabilizing your community through big-picture thinking, asking tough questions, and fostering equitable engagement.

Through the ServeMICity program, we can help you identify investments that do things like build dynamic places, inspire community well-being, provide safe and accessible housing, ensure universal broadband access and equity, and enable the creation of holistic health and public safety systems. The League is here to help make your ARP dollars count. Let’s build our future together by starting here.

Tune into Monday’s Live with the League discussion at noon to hear about the portal and how the League’s ServeMICity program can help. Register for free here.

Here are the step-by-step instructions from the Michigan Department of Treasury about the NEU submission process:

  • Log on to the ELITE system portal.
    • Select form “ARPA CLFRF Request”.
    • If you do not already have a login for Michigan Treasury’s ELITE system, select “Request Access New User” from the login page.
  • Filing instructions can be found on the state website.
  • All application documents must be saved as PDFs and uploaded during the submission process.
  • The data entered into the ELITE system must match the data entered on all forms or your submission will be denied (i.e., CAO name does not match), and resubmission will be required.
  • For assistance in calculating your Top Line Budget, please review Michigan Department of Treasury Numbered Letter 2021-5. Please note, this calculation is your approved budget with any amendments as of January 27, 2020.

More information and resources on CLFRF are available at Michigan.gov/ARPA.

Questions regarding the CLFRF can be directed to the Michigan Department of Treasury by e-mail at Treas-ARPA@michigan.gov.

Non-Entitlement Units Can Prepare Their ARP Allocation Requests

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This morning, the Michigan Department of Treasury finalized the necessary forms and guidance to assist Michigan’s 1,724 “non-entitlement units”, eligible for American Rescue Plan funding on a per capita basis, to submit their requests to receive their eligible distributions. This will be the first of two distributions that NEUs will be eligible to receive under the federal stimulus, with the second distribution expected in 2022.

Treasury anticipates that the following new documents/request submissions will be able to be uploaded to Treasury’s ELITE System by July 6th.

The following information was shared by MI Treasury…

Intended Audience: Non-entitlement units of local government requesting or declining Coronavirus Local Fiscal Recovery Funds under the American Rescue Plan Act (ARPA). Non-entitlement units are defined as primary local governments (cities, villages, townships) other than federally defined metropolitan cities and counties under ARPA.

The ARPA Coronavirus Local Fiscal Recovery Fund (CLFRF) Non-Entitlement Units of Local Government (NEU) Funding Election and Budget Certification Form (Form 5751) is now available for NEUs to complete. Additionally, Numbered Letter 2021-5 is now available to assist NEUs in calculating their top-line budget for CLFRF reporting.   

The Form 5751 will be uploaded into the ELITE system along with other required documentation. Currently, the online submission portal is not active. The online portal to submit the required CLFRF reporting is expected to be live the week of Tuesday, July 6, 2021.

NEUs Can Prepare Application Materials Today

All documents to accept the CLFRF NEU funding are now available. NEUs can complete the following tasks, save each completed file as a PDF, and be ready to upload in the ELITE system in anticipation of the launch next week.

Application Requirements:

Contact Us

More information and resources on CLFRF are available at Michigan.gov/ARPA.

Questions regarding the CLFRF can be directed to the Michigan Department of Treasury by e-mail at Treas-ARPA@michigan.gov.

 

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

State Budget Bill Positioned to Appropriate NEU Portion of ARP Funding

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Late yesterday afternoon, the Michigan House of Representatives moved a new version of a supplemental appropriation bill, Senate Bill 37, that appears to represent a deal on a number of outstanding federal stimulus items from last December’s federal stimulus effort and includes appropriating the first installment of the American Rescue Plan Act’s Non-Entitlement Unit funding aimed at Michigan cities, villages, and townships that were not classified as Metropolitan Cities under the federal stimulus.

Senate Bill 37 appropriates the first half of the NEU funds that will be distributed on a per capita basis by the Michigan Department of Treasury.  The appropriation of this $322 million is a necessary first step before Treasury can distribute these dollars to the eligible NEUs identified by the US Treasury late last month.  The League is co-hosting a webinar with Michigan Department of Treasury staff on Thursday, June 17th to further discuss how local units can apply/request these funds and some of the reporting and calculation details that communities will need to follow to receive and utilize these funds.  League members are strongly encouraged to attend this webinar as they begin strategy and community planning conversations around these dollars.

Senate Bill 37 also includes additional Coronavirus-related FEMA Disaster Assistance funding and over $378 million for emergency rental and utility assistance.  With the House’s action yesterday, this bill now goes back to the Senate for an expected concurrence vote today and the Governor’s signature.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Webinar on Federal Stimulus Scheduled for June 17

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The Michigan Department of Treasury released the following agenda and registration details for their first webinar on the American Rescue Plan Act, aimed at offering the Department’s initial guidance for implementing the ARP’s Coronavirus Local Fiscal Recovery Funds.

This webinar is scheduled for:

Thursday, June 17, 2021
2 p.m. – 3:30 p.m.

In partnership with the Michigan Municipal League, Michigan Townships Association, and Michigan Association of Counties, the Michigan Department of Treasury is pleased to announce the 13th webinar in the “Updates and Resources for Local Governments” webinar series.

Topics covered will include:

  • Updates on the American Rescue Plan Act, including eligible uses and receipting
  • Strategically utilizing funds

Participants can register and submit questions on the webinar’s registration page.

Agenda

  1.  Welcome & Introductions Heather Frick, Bureau Director, Bureau of Local Government and School Services, Michigan Department of Treasury
  2. Special Message to Locals
  3. Updates on the American Rescue Plan Act
    1. Receipt of Funds
    2. Eligible and Ineligible Uses of ARPA Funds
    3. Revenue Losses
    4. Reporting
      Eric Bussis, Chief Economist and Director of the Office of Revenue and Tax Analysis, Michigan Department of Treasury
      Rod Taylor, Administrator, Community Engagement and Finance Division, Michigan Department of Treasury
  4. Strategically Utilizing All Funds
    Tim Dempsey, Vice President, Public Sector Consultants
  5. Question and Answer 
  6. Closing Remarks
    Heather Frick, Bureau Director, Bureau of Local Government and School Services, Michigan Department of Treasury

Additionally, the Michigan Department of Treasury has developed a webpage with numbered letters, memorandums, webinars, and resources regarding COVID-19 updates for local governments and school districts. This webpage was created to ensure that Michigan communities have access to the most up-to-date guidance and is updated frequently with information and resources as they become available. 

Disclaimer: The U.S. Department of Treasury has issued interim rules for the American Rescue Plan Act. These rules are subject to change. The information provided during this webinar is solely intended for general reference and is not comprehensive or final information. It is recommended that local governments review all guidance from federal Treasury and contact their legal counsel and auditor for your specific situation.

 

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

U.S. Department of Treasury Releases Additional FAQs on the Coronavirus State and Local Fiscal Recovery Funds

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The League and our partners at the National League of Cities received the following information from US Treasury regarding the posting of 10 additional FAQs on the Coronavirus State and Local Fiscal Recovery Funds that are part of the American Rescue Plan Act. The full FAQ document, which includes FAQs from the original May 10 publication date, the previous May 27 update, and this week’s update, can be found here.

Questions added in the last two updates can be referenced within the FAQ as follows.

  • 5/27/21: 1.5, 1.6, 2.13, 2.14, 2.15, 3.9, 4.5, 4.6,10.3,10.4 (updates are noted with “[5/27]”)
  • 6/8/21: 2.16, 3.10, 3.11, 3.12, 4.7,6.7,8.2, 9.4, 9.5,10.5  (updates are noted with “[6/8]”)

The specific questions added on 6/8/21 include the following:

  • May recipients use funds to establish a public jobs program?
  • In calculating revenue loss, are recipients required to use audited financials?
  • In calculating revenue loss, should recipients use their own data, or Census data?
  • Should recipients calculate revenue loss on a cash basis or an accrual basis?
  • Do restrictions on using Coronavirus State and Local Fiscal Recovery Funds to cover costs incurred beginning on March 3, 2021 apply to costs incurred by the recipient (e.g., a State, local, territorial, or Tribal government) or to costs incurred by households, businesses, and individuals benefiting from assistance provided using Coronavirus State and Local Fiscal Recovery Funds?
  • How do I know if a water, sewer, or broadband project is an eligible use of funds? Do I need pre-approval?
  • May recipients use Fiscal Recovery Funds to fund Other Post-Employment Benefits (OPEB)?
  • Once a recipient has identified a reduction in revenue, how will Treasury track use of funds for the provision of government services?
  • What is the Assistance Listing and Catalog of Federal Domestic Assistance (CFDA) number for the program?
  • May recipients use funds to cover the costs of consultants to assist with managing and administering the funds?

U.S. Treasury intends to update their FAQs periodically to help clarify questions about the Interim Final Rule.  They anticipate another update soon, which is likely to include additional questions recently posed by communities across the country. U.S. Treasury is trying to respond as quickly as possible to these questions.

It is important to note that because the Interim Final Rule is still in the 60-day public comment period, there may be some points raised by stakeholders that cannot be addressed via FAQs and will need to be considered as part of the process for revising the rule. It you have specific questions we strongly encourage you to submit comments for the record to ensure that these perspectives are reflected in the public comments when it comes time to finalize the rule.

Additionally, U.S. Treasury posted an FAQ supplement regarding distribution of funds to non-entitlement units of local government (NEUs).  This FAQ supplement includes several questions answered as part of previous FAQ updates, as well as answers to 12 additional high-priority questions that were received from stakeholders over the course of our engagement since the release of the NEU guidance on May 24.

The new questions added to the NEU FAQ supplement are listed below.

  • Can states impose requirements or conditions on the transfer of funds to NEUs?
  • Can states transfer additional funds to local governments beyond amount allocated to NEUs?
  • May states use funds to pay for the administrative costs of allocating and distributing money to the NEUs?
  • What steps do states and territories need to undertake to receive their NEU payments?
  • What are the specific deadlines for state governments in distributing funds?
  • How long does a state have to wait until an NEU can be treated as “non-responsive” and the state can issue a subsequent distribution based on unclaimed funding?
  • How should a state treat a local government on the list posted on the Treasury website that is no longer in operation and has been dissolved?
  • How should territories allocate and distribute payments to their NEUs?
  • Can states pay entities that are not included in the list of local governments provided by Treasury?
  • Is a Second Tranche payment guaranteed for NEUs, provided that they comply with the terms and conditions of the funding?
  • How should states check to see whether an NEU is excluded or disqualified as outlined in the guidance?
  • Are states required to collect key information from the NEU as outlined in the guidance (e.g., banking information or top-line budget totals) or may states rely on existing information in their systems?
  • Do states have to collect actual budget documents to calculate the “75 percent budget cap,” or can they rely on a budget total?
  • Do states have to monitor NEUs for compliance with use of funds?
  • Is there a requirement to distribute funds to NEUs electronically, or can funds be distributed via check?

The League will continue to update members on the legislature’s activities around this funding as well as forthcoming updated guidance from the US and Michigan Department of Treasury.

Additionally, the MI Department of Treasury has joined with MML to host a webinar on the American Rescue Plan Act.  This webinar is scheduled for June 17th. Stay tuned for agenda information and registration details.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

New ARP Guidance for “Non-Entitlement Units” Released

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Monday evening, the US Treasury released guidance specifically related to the majority of Michigan communities that will receive American Rescue Plan Act funding on a per capita basis.

For Michigan, these Non-Entitlement Units (NEUs), are scheduled to receive more than $644 million in federal aid that will be distributed through the State of Michigan on a per capita basis.  While US Treasury did not attribute specific allocations to each of Michigan’s NEUs, they did provide a List of Local Governments eligible for this federal funding support.  This list also includes the 2019 census data that the State of Michigan will use to allocate this funding to our eligible NEUs.  The NEU definitional and data methodology is also outlined by US Treasury here.

Following significant lobbying by MML and our partners at the National League of Cities, this updated list of local governments from US Treasury recognizes all of Michigan’s villages as distinct NEUs, eligible for their own per capita allocation from the state.  This is an important acknowledgement for Michigan communities becasue of our unique system of local government compared with our national peers.  We are now working with the Michigan Department of Treasury and the State Budget Office to determine how the state intends to implement and distribute this funding based upon the specific guidance that US Treasury provided to the states.  According to language in the American Rescue Plan, the state is required to forward these dollars within 30 days of receipt from the federal government, with only minor allowances for extensions.  A state appropriation bill must be passed to distribute this $644 million to all 1,724 eligible Non-Entitlement Units in Michigan.

The League will continue to update members on the legislature’s activities around this funding as well as forthcoming updated guidance from the US and Michigan Department of Treasury.

HEADS UP – We are also working with the Michigan Department of Treasury on a webinar for local government officials in early June.  Stay tuned for agenda information and registration details.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

American Rescue Plan Guidelines Discussions

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In case you missed the recent webinar by the National League of Cities about the new American Rescue Plan guidelines, no worries – the Michigan Municipal League has you covered in a couple ways.

First, we have the PowerPoint presentation that the NLC gave on Wednesday and you can view that here. Want to watch it again? Or maybe you missed it live? Go here to watch the on-demand recording, download the slides, or view all the other great resources shared. Visit the NLC’s  COVID-19 resource hub here.

Second, on Monday at noon, the Michigan Municipal League will host a special edition of our Live with the League show featuring the NLC’s Michael Gleeson. Gleeson and our Lansing team will discuss the new American Rescue Plan guidelines and what they mean for your community. We’ll also answer as many of your questions as we can. Register for the free Live with the League event here.

Here are some key takeaways from Wednesday’s NLC event and things we will discuss further on Monday:

  • Final allocations for Metropolitan cities (populations over 50k) have been released and they can begin requesting funds.
  • Guidance for Non-Entitlement Units of Local Government (populations below 50K), including allocations and receiving instructions, is expected to be released in the coming days.
  • Framework for Interim Rule are divided into three categories: non-exclusive lists of allowable expenditures, encouraged expenditures, and prohibited expenditures.

Here are some additional documents and links from the NLC and MML detailing the guidelines and allocations:

In addition, the NLC is asking our members to share their ARP-related story and questions using this tool. Sharing your American Rescue Plan Act questions and your municipality’s story will assist the NLC in amplifying the issues our communities are tackling. Your continued feedback and patience will be very helpful as NLC works to catalogue the influx of questions. The NLC and the MML will continue develop and share guidance that is critical to your response efforts over the course of the next two months.

Here is a video from the League about our new talking points (printable pdf of the talking points is here):

 
 

White House Briefing Offers Insights Into ARP Guidance Released Today

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Staff from the White House Office of Intergovernmental Affairs and the U.S. Department of the Treasury just wrapped up their second local government briefing following today’s release of the Interim Final Guidance for the Coronavirus State and Local Fiscal Recovery program within the American Rescue Plan (ARP) federal stimulus.

Here are some of ineligible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

Prior to the briefing, Treasury and the White House offered a Fact Sheet that outlined many of the highlights found within the 150 page guidance document and accompanying initial FAQ. These documents are meant to assist states and local units of government with eligible expenditure opportunities for the stimulus funds.

Administration officials offered insight into many of the goals behind the inclusion of these state and local relief dollars within the stimulus bill, including a desire to blunt many of the negative impacts that the country’s economy experienced due to the contraction in economic activity from state and local governments following the Great Recession.  The Administration views the ARP as an opportunity to help states and local governments avoid a repeat of the post-Great Recession years by providing a longer tail of support that will allow local communities to weather any unforeseen shortfalls or economic downturns on the path to recovery.

Here are some of eligible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

The presenters acknowledged the need for continuing work on the guidance and related FAQs in the coming weeks and promised a robust staff response through a call center, a planned series of additional briefings, and other updates and communications with local units of government.

Specific to Non-Entitlement Local Units of Government who will receive their funding on a per capita basis as a pass-through from the state, officials this evening relayed that individual allocations for those non-entitlement units are planned for release next week.  While today’s announcement and guidance release identified the overall funds that Michigan will receive for these non-entitlement units ($644.3 million), the individual amounts are delayed while Treasury continues to navigate the unique local government structure in each state.

Tonight’s presentation offered three main focus points as the driving force behind the guidance:

  • Fighting the pandemic
  • Replacing lost revenues
  • Building a foundation for a stronger economic recovery

Here are some of eligible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

League staff and our partners at the National League of Cities are diving into the guidance documents tonight and over the next few days and we will be scheduling a series of webinars for members to help understand their meaning and opportunities for investment and fiscal relief as these dollars begin to be distributed from Washington.

League members are encouraged to visit US Treasury’s Coronavirus State and Local Fiscal Recovery Funds website for continuing updates and updated FAQs.  This website also offers access to the portal for receiving direct payments for those cities classified as Metropolitan Cities according to the Act. The link to the portal can be found here.

Local governments designated as non-entitlement units are eligible to receive Coronavirus State and Local Fiscal Recovery Funds, as provided in the American Rescue Plan Act. However, they will receive this funding from their applicable state government, not though this link.

SUBMISSION REQUIREMENTS

Here are some of eligible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

To complete a submission on behalf of your jurisdiction, you will be asked to provide the following information:

  1. Jurisdiction name, taxpayer ID number, DUNS Number, and address
  2. Authorized representative name, title, and email
  3. Contact person name, title, phone, and email
  4. Funds transfer information, including recipient’s financial institution, address, phone, and routing number and account number
  5. Completed certification document (to be signed by the authorized representative)

Jurisdictions must submit a request to receive funding even if they have previously applied for other programs through the Treasury Submission Portal. Eligible jurisdictions will receive further communications regarding the status of their submission via the email address provided in the Treasury Submission Portal.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

John LaMacchia is the Assistant Director of State and Federal Affairs for the League handling transportation, infrastructure, energy and environment issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Here are the New Guidelines for American Rescue Plan for Municipalities

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Here are some of ineligible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

New Update: The National League of Cities (NLC) and the Michigan Municipal League (MML) will each have events about the new guidelines in the coming days. The NLC will have a Federal Advocacy Update Call at 4 p.m. Wednesday, May 12 (register here) and the MML will unpack the guidelines for you during our Live with the League conversation Monday, May 17. Register for that here.

Update: The U.S. Department of the Treasury and the White House Office of Intergovernmental Affairs will host two identical 30-minute introductory briefings with state and local associations and stakeholders TODAY (May 10, 2021) at 4:00 PM EDT (link) and 6:45 PM EDT – (NEW LINK here). The Michigan Municipal League encourages our members to attend.

The U.S. Department of the Treasury today released the guidelines that communities must follow in administering the American Rescue Plan. The Michigan Municipal League and National League of Cities are currently analyzing the guidelines and we will have a webinar very soon to break it all down for you. Keep a close eye on your emails for details on the upcoming webinar.

Here are some of the possible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

The National League of Cities has sent the MML the following documents detailing the guidelines and allocations. Here are links to those documents:

Here is key information about the guidelines from a U.S. Department of the Treasury Press release.

  • Today, the U.S. Department of the Treasury announced the launch of
    the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, to provide $350 billion in emergency funding for state, local, territorial, and Tribal governments. Treasury also released details on the ways funds can be used to respond to acute pandemic-response needs, fill revenue shortfalls among state and local governments, and support the communities and populations hardest-hit by the COVID-19 crisis. Eligible state,
    territorial, metropolitan city, county, and Tribal governments will be able to access funding directly from the Treasury Department in the coming days to assist communities as they recover from the pandemic.

  • Here are some of eligible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

    While the need for services provided by state, local, territorial, and Tribal governments has increased —including setting up emergency medical facilities, standing up vaccination sites, and supporting struggling small businesses—these governments have faced significant revenue shortfalls as a result of the economic fallout from the crisis. As a result, these governments have endured unprecedented strains, forcing many to make untenable choices between laying off educators, firefighters, and other frontline workers or failing to provide services
    that communities rely on. Since the beginning of this crisis, state and local governments have cut over 1 million jobs.

  • The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hardest-hit by the crisis. Within the categories of eligible uses listed, recipients have broad flexibility to decide how best to use this funding to meet the needs of their communities.
  • In addition to allowing for flexible spending up to the level of their revenue loss, recipients can use funds to:
    • Support public health expenditures, by – among other uses – funding COVID-19
    mitigation efforts, medical expenses, behavioral healthcare, mental health and substance misuse treatment and certain public health and safety personnel responding to the crisis;
    • Address negative economic impacts caused by the public health emergency,
    including by rehiring public sector workers, providing aid to households facing food, housing or other financial insecurity, offering small business assistance, and extending support for industries hardest hit by the crisis
    • Aid the communities and populations hardest hit by the crisis, supporting an
    equitable recovery by addressing not only the immediate harms of the pandemic, but its exacerbation of longstanding public health, economic and educational disparities
    • Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service during the pandemic; and,
    • Invest in water, sewer, and broadband infrastructure, improving access to clean
    drinking water, supporting vital wastewater and stormwater infrastructure, and expanding access to broadband internet.
  • Insufficient federal aid and state and local austerity under similar fiscal pressures during the Great Recession and its aftermath undermined and slowed the nation’s broader recovery. The steps the Biden Administration has taken to aid state, local, territorial, and Tribal governments will create jobs and help fuel a strong recovery. And support for communities hardest-hit by this crisis can help undo racial inequities and other disparities that have held too many places back for too long.
  • For more information, visit Coronavirus State and Local Fiscal Recovery Funds on
    Treasury.gov.

Here are some of eligible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

Now that these long-awaited guidelines for the State and Local Fiscal Recovery Funds are out, the Michigan Municipal League anticipates that many of our member communities will likely get contacted from the media, businesses, and residents about how they are going to utilize this support within these guidelines.

To help, the League has come up these talking points for our community leaders to use if they would like. The talking points are also pasted below.

Also, the ServeMICity program generously supported by the Michigan Municipal League Foundation is there to help your community navigate all COVID-19-related financial assistance that’s out there, including these ARP dollars. If you are interested in that program please contact the League’s Shanna Draheim at sdraheim@mml.org.

If you have any questions about these talking points or the American Rescue Plan in general, please contact the League’s Chris Hackbarth at chackbarth@mml.org, John LaMacchia at jlamacchia@mml.org, or Matt Bach at mbach@mml.org.

Please stay tuned to the League’s Inside 208 blog and the League’s social media outlets for the latest information about the American Rescue Plan, including upcoming informational webinars, videos, and discussions that the League is currently working on related to these guidelines.

Here are the talking points (get printable pdf here):

Charting Our Future: ARP Talking Points

  • After weeks of waiting and speculation, the guidelines for the American Rescue Plan (ARP) have now been released.
  • This support represents a once-in-a-generation opportunity for [MUNICIPALITY] to reflect on the needs of our community and strategically invest these resources in our future, building community wealth for our residents and businesses.
  • Our community is currently reviewing the new American Rescue Plan guidelines and will continue to be deliberate and collaborative in deciding how to best use this funding in ways that are impactful and have long-term benefit for [MUNICIPALITY].
  • To maximize the impact, we will also work with our partners at the Michigan Municipal League and National League of Cities to explore ways to leverage and amplify the funding we have received with other available resources.
  • The good news is, we have time, and don’t need to rush our decision on how we spend these funds. A key part of the American Rescue Plan is that the estimated money we are to receive does not have to be allocated until the end of 2024. Providing us the time to work with you to determine how this support is best utilized.
  • Our community, like all Michigan municipalities, has faced tough times and tough decisions over the past two decades. The American Rescue Plan gives us an opportunity invest in ourselves, and emerge from the pandemic stronger than we were before.
  • This community has stepped up time and time again to find creative, innovative ways to move us forward.
    • Michigan communities have endured through [Insert your own examples, such as population decline, once in a lifetime flooding, infrastructure failure, social and racial unrest, economic devastation, major demographic shifts, drug epidemics, declining public health—both physical and mental—] topped off by a global pandemic that threatened to bring us to our knees. We wish we could say that was the end of the list.
  • Together, we have risen to the occasion to help each other, and to keep the wheels turning on the basics of local government (public safety, roads and infrastructure, parks, etc.). While the pandemic might be global, its affects are felt locally.
    • Many of us have lost loved ones and friends.
    • Our restaurants and small businesses have suffered tremendously.
    • Our children and schools have struggled to adapt to remote learning.
  • In short, now is the time to invest in the needs of our community.
  • Local government belongs to its residents. By working together, we will create a plan that responsibly invests in our people and our overall economic recovery while also paying dividends long into the future.