The Department for Local Government (DLG) announced Wednesday that non-entitlement units (NEUs) of local government would receive a subsequent payment from the first tranche of the American Rescue Plan Act (ARPA) funds. The additional checks come from unclaimed Local Fiscal Recovery Fund money that NEUs initially declined, and they do not affect or represent the second tranche of ARPA funds.
Cities that received the first tranche of funding in July 2021 will get a subsequent mailed check within the coming days. DLG reallocated unclaimed money as directed by the U.S. Department of the Treasury. The state’s nine entitlement communities – Ashland, Bowling Green, Covington, Elizabethtown, Henderson, Hopkinsville, Lexington, Louisville, and Owensboro – will not receive a supplemental payment from the first tranche.
Checks total nearly half a million dollars, and the average subsequent check equals around $1,300. The City of Richmond will receive the largest check totaling almost $14,000. These funds must still follow all applicable federal guidance.
The nine entitlement cities will receive their second tranche of ARPA funds in May 2022. All other cities will receive the second half of their full award in July 2022. The American Rescue Plan Act requires Treasury and states to distribute the balance of funds 12 months after they provided the first round of money.
NEUs must submit their first Project and Expenditure Report by April 30, 2022. The reporting period covers the date of award through March 30, 2022. The Kentucky Leagues of Cities (KLC) will host a free webinar for members focusing on ARPA reporting on April 19.