News Flash

Federal Government

Posted on: August 24, 2023

U.S. Treasury Releases Interim Final Rule on ARPA Flex

Earlier this month, the U.S. Department of Treasury released its long-awaited Interim Final Rule on ARPA Flex and an Overview of the Interim Final Rule. ARPA Flex was a provision passed by Congress in December 2022. 

This rule created three new expenditure categories for eligible spending: 

  • Provision of emergency relief from natural disasters.  
  • Transportation infrastructure eligible projects and matching funds.  
  • Any program, project, or service that would also be eligible under HUD’s Community Development Block Grant program. 

The Coronavirus State and Local Fiscal Recovery Funds (SLFRF), a part of the American Rescue Plan, delivers $350 billion to state, local, territorial, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency.

The National League of Cities (NLC), the League’s Federal partner, has a detailed blog post expanding on the new eligible uses.  

As a reminder, for all eligible uses, recipients must obligate funds by December 31, 2024. Recipients must expend funds by September 30, 2026, for Surface Transportation projects and Title I projects, and by December 31, 2026, for all other eligible uses.

The Interim Final Rule will be published in the Federal Register next week, starting a 60-day comment period. The timeline for a final rule is uncertain and depends upon the volume and complexity of comments.  

We encourage you to share this information with your municipal professionals.

Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.

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