On March 11th, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law. ARPA provides stimulus to individuals, businesses, and government entities to assist in their respective COVID-19 responses. ARPA interests townships both as a government entity and an employer. Minnesota towns will receive a portion of $350 Million provided to all Minnesotan towns and cities with a population under 50,000, but none can receive more than 75% of their 2019 budget. The term “budget” for setting the 75% limit means either formal budget, which many town’s do not have, or a town’s 2019 total expenditures.
The maximum total amounts towns are eligible for can be found here (Please Note: the allocations on the spreadsheet are out of $1,000,000, meaning if your township’s allocation amount is 0.1, then the spreadsheet is indicating that the town can receive a maximum amount of $100,000).
The following links provide general information related to the American Rescue Plan Act. However, any specific issues related to requesting funds, how to use the funds, and how to apply for funds will be found in the other tabs.
Article: American Rescue Plan Information by MAT
Contains details on:
- Checklist for Requesting Initial Payments
- Local Government Relief
- ARPA distributions
- Responses to the Public Health Emergency and its Negative Economic Impacts
- Create a grant program
- Premium Pay to Essential Employees
- Replacement of Reduced Revenue
- Transfer to Other Entities
- Families First Coronavirus Response Act
- Firefighter Grants
- Single Audit Requirements
To receive funds from the American Rescue Plan Act, the town will need to request the funds from Minnesota Management and Budget. Further, towns will need their DUNS number, register it in the federal System for Award Management (SAM), and obtain other documentation. To get a focused and concise discussion on this application, please review the below video. Any other issues related to specific steps can be seen in the other articles.
BEWARE of ARPA related registration scams! All steps of the registration for ARPA are free. Some towns report finding websites asking them to pay $500 to complete a registration. Towns should not pay anything to register unless they have arranged to have a third-party involved in their registration. To avoid these websites, towns should use only the links we have provided to register.
Presentation: ARPA: Step-by-Step Application Process by MAT
26-minute recording from June 11, 2021
The presentation provides a step-by-step process towns may follow to receive funds from the American Rescue Plan Act (ARPA). A link to the presentation can be found at: Receiving-ARPA-Funds-002-MAT-6-16-21.mp4 (158 downloads)
Download the slides at: How-to-Receive-ARPA-Funds.pdf (71 downloads)
The presentation includes directions to:
- Apply for a DUNS Number at Dun and Bradstreet’s website
- Register the DUNS in the SAM system on the SAM’s website
- Banking Needs (For specifics, review this article)
- Complete 2 require Federal Forms
- Determine the Town’s expected grant award
- Complete the application to receive funds: Found at Minnesota Management and Budget’s Request Portal.
Overall, this should help you complete the process of applying for the funding. This presentation does not include information on what the ARPA funding may be spent on.
Article: Request ARP funds now: process open
Article: Banking information
Towns are limited on what American Rescue Plan Act funds may be spent. The links below discuss approved expenditures, and what processes the town can go through to determine what is allowed.
BEWARE of ARPA-related scams! Many local governments report receiving unsolicited communications from businesses suggesting the town can use its ARPA money on the solicitor’s product or service. Some say they are “ARPA Approved”, but no such official approval exists. Many of these products and services will not qualify as legitimate ARPA-related expenses. Towns should be wary of any unsolicited offer for the use of its ARPA funding.
One of the major categories for using ARPA funds is revenue loss. The U.S. Treasury provided a complicated formula to determine loss, but a calculator has been developed.
Spreadsheet: The calculator can be found here
Video: Presentation on ARPA Uses by MAT
24-minute recording from June 24, 2021
You can also download the video in the following link: ARPA-Uses-Presentation-001-MAT-6-24-21.mp4 (50 downloads)
Download the slides at: ARPA-Uses.pdf (58 downloads)
Webinar Recording: Webinar on ARPA Uses and Q&A
71-minute recording from June 25, 2021
Presenters: Steve Fenske and Karl-Christian Johannessen, Minnesota Association of Townships
Q&A: After the initial presentation, the Question & Answer Time begins at the 41:00-minute mark of the video.
The use of American Rescue Plan Act funds must be reported annually, beginning October of 2021, and can continue through October of 2026. Information regarding how to and what to report will be found below.
Information forthcoming – check back for updates!