The U.S. House of Representatives on March 10, 2021, passed the Senate-amended H.R. 1319, the American Rescue Plan (ARP). The ARP provides $1.9 trillion in additional relief to respond to the novel coronavirus (COVID-19). This follows the enactment of nearly $4 trillion in COVID relief in 2020. President Joe Biden called for Congress to enact the ARP to provide relief for individuals and business struggling due to COVID-19, as well as to achieve other priorities of the Biden Administration and Congress. ARP includes provisions on aid to state and local governments, hard-hit industries and communities, tax changes affecting individuals and business, and other provisions.
PROGRAM
In the early fall of 2021, the state of Vermont will distribute $315,232.07 in ARPA funds to Guilford. Following that, in the early fall of 2022, the state of Vermont will distribute $315,232.06; for a two-year total of $630,464.13. These funds will be distributed in a variety of ways, determined by the Selectboard. The Selectboard intends to invest a significant portion of the ARPA funds in the community through grant awards. All funds must be distributed by the end of 2026.
ELIGIBILITY
Grants may be awarded to Guilford individuals, businesses, and organizations.
SELECTION CRITERIA
ARPA legislation includes four broad criteria outlining eligible uses. Successful grant award recipients will:
- Respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality; and/or
- Respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers; and/or
- Provide for government services to the extent of the reduction in revenue due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and/or
- Make necessary investments in water, sewer, or broadband infrastructure.
GUILFORD’S GRANT APPLICATION PROCESS
A timeline for the entire award process will be published shortly after the September 27th Selectboard meeting.
Grants will be evaluated, scored, and awarded by the Selectboard. A set of evaluation criteria will be made public shortly after the September 27th Selectboard meeting.
Additional details and questions about ARPA funds, who may receive and how to apply for them, follow.
GUILFORD’S GRANT APPLICATION
The grant application and evaluation criteria may be found here.
Frequently Asked Questions
For what community programs may ARPA funds be used?
Assistance to households or populations facing negative economic impacts due to COVID-19 is also an eligible use. This includes: food assistance; rent, mortgage, or utility assistance; counseling and legal aid to prevent eviction or homelessness; cash assistance; emergency assistance for burials, home repairs, weatherization, or other needs; internet access or digital literacy assistance; or job training to address negative economic or public health impacts experienced due to a worker’s occupation or level of training.
May ARPA funds be used to make loans or other extensions of credit, including loans to small businesses and loans necessary to finance necessary investments in water, sewer, and broadband infrastructure?
Yes, provided that the loan is an eligible use and the cost of the loan is tracked and reported in accordance with the points that follow. See 31 CFR 35.6. For example, a recipient may use ARPA funds to make loans to small businesses. See 31 CFR 35.6(b)(6). In addition, a recipient may use ARPA funds to finance a necessary investment in water, sewer or broadband, as described in the Interim Final Rule. See 31 CFR 35.6(e). Funds must be used to cover “costs incurred” by the recipient between March 3, 2021, and December 31, 2024, and Funds must be expended by December 31, 2026. See Section III.D of the Interim Final Rule; 31 CFR 35.5. Accordingly, recipients must be able to determine the amount of Funds used to make a loan.(See Treasury’s FAQ for more details relative to length of loans.)
Would investments in improving outdoor spaces (e.g., parks) be an eligible use of funds as a response to the public health emergency and/or its negative economic impacts?
There are multiple ways that investments in improving outdoor spaces could qualify as eligible uses; several are highlighted below, though there may be other ways that a specific investment in outdoor spaces would meet eligible use criteria.
First, in recognition of the disproportionate negative economic impacts on certain communities and populations, the Interim Final Rule identifies certain types of services that are eligible uses when provided in a Qualified Census Tract (QCT), to families and individuals living in QCTs, or when these services are provided by Tribal governments. Recipients may also provide these services to other populations, households, or geographic areas disproportionately impacted by the pandemic.
These programs and services include services designed to build stronger neighborhoods and communities and to address health disparities and the social determinants of health. The Interim Final Rule provides a non-exhaustive list of eligible services to respond to the needs of communities disproportionately impacted by the pandemic, and recipients may identify other uses of funds that do so, consistent with the Rule’s framework. For example, investments in parks, public plazas, and other public outdoor recreation spaces may be responsive to the needs of disproportionately impacted communities by promoting healthier living environments and outdoor recreation and socialization to mitigate the spread of COVID-19.
Second, recipients may provide assistance to small businesses in all communities. Assistance to small businesses could include support to enhance outdoor spaces for COVID-19 mitigation (e.g., restaurant patios) or to improve the built environment of the neighborhood (e.g., façade improvements).
Third, many governments saw significantly increased use of parks during the pandemic that resulted in damage or increased maintenance needs. The Interim Final Rule recognizes that “decrease[s to] a state or local government’s ability to effectively administer services” can constitute a negative economic impact of the pandemic.
What infrastructure projects may ARPA be used on?
General infrastructure spending is not covered as an eligible use outside of water, sewer, and broadband investments or above the amount allocated under the revenue loss provision.
May funds be used to invest in infrastructure OTHER THAN water, sewer, or broadband, such as roads of public facilities?
Recipients may use funds for maintenance of infrastructure or pay-go* spending for building of new infrastructure as part of the general provision of government services, to the extent of the estimated reduction in revenue due to the public health emergency. A general infrastructure project typically would not be considered a response to the public health emergency and its negative economic impacts unless the project responds to a specific pandemic-related public health need (e.g., investments in facilities for the delivery of vaccines) or a specific negative economic impact of the pandemic (e.g., affordable housing in a Qualified Census Tract).
*Pay-go infrastructure funding refers to the practice of funding capital projects with cash on hand from taxes, fees, grants, and other sources rather than borrowed sums.
What types of positions are considered ‘eligible workers’ for Premium Pay?
“Eligible workers” are those workers who have performed essential work during the COVID-19 public health emergency. They are in critical infrastructure sectors who regularly perform in-person work, interact with others at work, or physically handle items handled by others.
Eligible (essential) workers include:
- Staff at nursing homes, hospitals, and home care settings;
- Workers at farms, food production facilities, grocery stores, and restaurants;
- Janitors and sanitation workers;
- Truck drivers, transit staff, and warehouse workers;
- Public health and safety staff;
- Childcare workers, educators, and other school staff; and
- Social service and human services staff.
Is the $25K cap on Premium Pay under Section B on a yearly basis or for the entire time of 3/3/21 to 12/31/24?
The cap is for the whole covered period.
Is $13/hr the cap for Premium Pay?
Premium pay is stated to mean “an amount of up to $13 per hour that is paid to an eligible worker,” (IFR p. 13). Therefore, $13 would be the cap.
May ARPA funds be used for mental health services?
Yes. Services to address behavioral healthcare needs exacerbated by the pandemic include: mental health treatment, substance misuse treatment, other behavioral services, hotlines or warmlines, crisis intervention, services or outreach to promoe access to health and social services.
May Guilford transfer its ARPA funds to another entity?
The federal statute provides four (4) categories of entities to which a town/city/village may transfer funds:
- A private nonprofit organization;
- A public benefit corporation involved in the transportation of passengers or cargo;
- A special-purpose unit of state or local government*; or
- A state government.
*Special-purpose districts perform specific functions in the community, such as fire, water, sewer or mosquito abatement districts.
A municipality may transfer its ARPA funds to another municipality. Section 603(c)(3) of the Social Security Act authorizes a local government to transfer funds to the same entities (other than Tribal organizations). The Interim Final Rule clarifies that the lists of transferees in sections 602(c)(3) and 603(c)(3) are not exclusive, and recipients may transfer funds to constituent units of government or private entities beyond those specified in the statute.
May ARPA funds be pooled for regional projects?
Yes, provided that the project is itself an eligible use of funds and that the award recipients can track the use of funds in line with the reporting and compliance requirements of the Coronavirus Local Fiscal Recovery Funds/ARPA. In general, when pooling funds for regional projects, recipients may expend funds directly on the project or transfer* funds to another government that is undertaking the project on behalf of multiple recipients. To the extent recipients undertake regional projects via transfer to another government, recipients would need to comply with the rules on transfers specified in the Interim Final Rule, Section V. A recipient may transfer funds to a government outside its boundaries (e.g., county transfers to a neighboring county), provided that the recipient can document that its jurisdiction receives a benefit proportionate to the amount contributed.
May ARPA funds be used to deposit into a housing fund?
Investing in Housing and Neighborhoods to build stronger communities as an eligible use of the funds under Section. A. This is in the context of addressing those disproportionately impacted by the pandemic. It is not clear if storing funds in a housing fund is eligible, however, funds may be used on services to address homelessness, affordable housing development, housing vouchers, residential counseling, or housing navigation assistance. (Interim Final Rule, p. 10-11)
For More information on ARPA Guidleines.
In May, the U.S. Department of the Treasury issued an Interim Final Rule that further explains eligible and ineligible uses. The National League of Cities has also provided some additional FAQs about how the funding can be used. Treasury issued an easy to read and understand FAQ about the Interim Final Rule .
