Non-entitlement units (NEUs) of local government will soon receive another $162 million from the American Rescue Plan Act (ARPA). The Department for Local Government (DLG) has processed the second tranche of State and Local Fiscal Recovery Fund (SLFRF) dollars, and most cities should receive those funds through the mail soon.
The American Rescue Plan Act provided that half of the funds allocated to NEUs – all Kentucky cities other than Ashland, Bowling Green, Covington, Elizabethtown, Henderson, Hopkinsville, Lexington, Louisville, and Owensboro – would come roughly 12 months after the state’s initial allocation from the U.S. Department of the Treasury. DLG serves as the conduit for NEU funds and processed the second round of checks on Thursday.
“COVID has proven that Kentucky can rise to meet challenges when we work together,” said Governor Andy Beshear in a press release announcing the payments. “This funding will set eligible city governments up for success as we remain committed to building a better Kentucky.”
Cities can use their SLFRF money for a variety of projects, including COVID recovery, additional pay for public employees, and the provision of government services. Cities must expend all ARPA funds by December 31, 2024, although Treasury allows an additional two years to complete major projects.
Some NEUs still need to file their project and expenditure reports, submit required agreements and supporting documents, or assign reporting roles within Treasury’s online portal. Ashland, Bowling Green, Covington, Lexington, Louisville, and Owensboro must submit their next quarterly report by July 31. All other cities report annually, and those next reports are due April 30, 2023.