State and local governments have been leading our communities through COVID-19 response, monitoring, and recovery since day one. With an additional $1.9 trillion in flexible funds provided through the American Rescue Plan Act of 2021 (ARPA), businesses and residents are feeling more hope than ever before. State and local governments, in addition to school districts, have a unique opportunity to invest in technology to support long-term recovery efforts while delivering better, virtual services to their constituents now and into the future.

ARPA by the numbers: 

• States and the District of Columbia have been allocated $219.8 billion
• Counties, parishes, and boroughs have been allocated $65.1 billion
• Metropolitan cities will receive direct funding of $45.57 billion
• Non-entitlement municipalities (cities with populations fewer than 50,000) will receive $19.53 billion
• K-12 education will receive $130 billion to help schools reopen

Tyler urges government and school districts to look at strategic technology investments to ensure the required digital infrastructure is in place to provide stability of citizen-facing and backend services that make an impact now and that last beyond the pandemic. These funds, just like CARES Act and other stimulus funds, can further improve government’s ability to maintain successful continuity of operations while also supporting future success.

Several of Tyler's industry association partners have analyzed the American Rescue Plan Act of 2021 and have developed responses to several frequently asked questions. Please find FAQ summaries from both the National League of Cities and the National Association of Counties below. More information can be found by visiting their COVID-19 resource hubs. 

1. What does my government need to do to receive funds?

On May 10, 2021, the U.S. Treasury Department released new guidance and opened the Treasury Submission Portal for governments to request funds. Submission requirements include that governments prepare the following information.

1. Ensure they have a valid DUNS number. A DUNS number is a unique nine-character number used to identify and organization and is issued by Dun & Bradstreet. The federal government uses the DUNS number to track how federal money is allocated. Registering for a DUNS number is required prior to registering with the SAM database, outlined below. 
2. Ensure they have an active SAM registration. The System for Award Management (SAM) is the official government-wide database to do business with the U.S. government. All recipients of federal financial assistance must register on SAM.gov and renew their registration annually to maintain active status.
3. Gather payment information. To complete a submission, governments must provide the following information: Jurisdiction name, taxpayer ID number, DUNS Number, and address; Authorized representative name, title, and email; Contact person name, title, phone, and email; Funds transfer information, including recipient’s financial institution, address, phone, and routing number and account number; Completed certification document (to be signed by the authorized representative).

States, territories, Tribal governments, counties, and metropolitan cities must ensure all pre-award requirements have been met before submitting request for funds. Non-entitlement units of local government (cities, towns, and villages with a population less than 50,000) do not need an active SAM registration as their grant funds will be distributed directly from their state.

2. How will my government receive its funds?

All 50 states, the District of Columbia, territories, Tribal governments, and the 19,000+ municipalities and 3,069 counties will receive direct funding under the American Rescue Plan. The Act explains that all counties and approximately 1,000 metropolitan cities with populations more than 50,000 will receive funds directly from the U.S. Treasury Department. The remaining 18,000 municipalities will have funds distributed directly from their state. 

3. How much money will my government receive?

The U.S. Treasury Department has published detailed allocation information for the State and Local Fiscal Recovery Funds:

• Allocation for States (PDF) / Allocation for States (CSV)
• Allocation for Territories (PDF) / Allocation for Territories (CSV)
• Allocation for Counties (PDF) / Allocation for Counties (CSV)
• Allocation for Metropolitan Cities (PDF) / Allocation for Metropolitan Cities (CSV)
• Allocation for Non-Entitlement Units (PDF) / Allocation for Non-Entitlement Units (CSV)

Funding amounts for non-entitlement units are currently available only in aggregate at the state level. The U.S. Treasury will provide further guidance on distributions later in May. 

To protect the privacy of Tribal government information, each Tribal government will receive its allocation amount after submitting its request for funding in the Treasury Submission Portal.

The National League of Cities and National Association of counties are also visualizing allocation amounts for both cities and counties.

4. When will my government receive funds?

Local governments will receive funds in two tranches. The first payment of 50% will be provided beginning in May 2021 and the balance delivered approximately 12 months later. States that have experienced a net increase in the unemployment rate of more than 2 percentage points from February 2020 to the latest available data as of the date of certification will receive their full allocation of funds in a single payment; other states will receive funds in two equal tranches. Governments of U.S. territories will receive a single payment. Tribal governments will receive two payments, with the first payment available in May and the second payment, based on employment data, to be delivered in June 2021.

5. Is there a deadline to use the funds?

The bill states that local government funds are available through December 31, 2024. The U.S. Treasury Department will soon make a decision on if local governments will have need to spent all funds by that date or have obligated allocations by that date.

6. What are the specific allowable uses of funds?

Recipients of the State and Local Fiscal Recovery Funds may use these funds to:

• Support public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff
• Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector
• Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic
• Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical infrastructure sectors
• Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet

Within these overall categories, recipients have broad flexibility to decide how best to use this funding to meet the needs of their communities.

To find out how Tyler Technologies can work with your agency on strategic technology investments, reach out to us »