American City & County: Baxter Drennon on ARPA Funds, Their Impact for Municipalities

In an article published on January 27, 2023, by American City & County magazine, Little Rock, Arkansas, partner Baxter D. Drennon offers guidance to municipalities surrounding the American Rescue Plan Act (ARPA) of 2021 and its economic impact.

The $1.9 trillion package, which includes funding for states, local governments, and tribal nations in response to the impacts of the COVID-19 pandemic, comes with major compliance requirements for recipients.

In the column, Drennon discusses how the funds can be spent, the administrative requirements for spending the funds, and the consequences for missing the compliance requirements.

Drennon offers guidance on ARPA’s economic impact: The actual impact of the pandemic on cities and counties might be up for debate. Some saw revenues increase, but the ARPA has provided much needed funds to address aging infrastructure or to expand broadband. Initially, it was expected that the program would limit eligible expenses, but with the subsequent guidance, a city or county can likely use the funds for any legitimate government function. Before doing so, it is important that each use be carefully evaluated to avoid any payback requirements.

You can read the full article on the American City & County site.