The American Rescue Plan Act (ARPA), signed by President Biden on March 11, 2021, provides for the distribution of federal fiscal recovery funding to states, tribal governments, metropolitan cities, counties, and non-entitlement units (NEUs) of local governments, which generally have populations below 50,000. Funding allocations for states, tribal governments, metropolitan cities, and counties are received direct from the U.S. Department of the Treasury. The funding allocation for cities in North Dakota is provided from the U.S. Department of the Treasury to the state. The state must then allocate that funding to the eligible NEUs (cities) based on their population. Cities in North Dakota can expect to receive $53.2 million through this allocation. Funding for the state’s three largest cities was allocated directly from the U.S. Department of the Treasury, since they are considered to be metropolitan cities, and therefore are not included in the NEU allocation. The population-based allocation will be distributed to cities through the ND State Treasurer’s office. This spreadsheet provides the amount that your city is eligible to receive. Per Fiscal Recovery Funds statutory requirements, distributions to NEUs cannot exceed 75% of the NEU’s most recent budget. Therefore, the total allocation for your city is limited to 75% of your 2020 annual budget. Payments will be split into two increments with 50% of the total available in 2021 and the remaining amount in 2022.
Federal FAQ’s have been issued, including an FAQ document specific to distributions to non-entitlement units (NEUs).
Prepare to Apply
The U.S. Department of the Treasury has provided the following checklist as cities prepare to request funding:
- Obtain or confirm your city’s valid DUNS number
- Register your city with SAM.gov
- Gather your city’s payment information:
- City name, Entity’s Taxpayer Identification Number, DUNS number, and address
- Authorized representative name, title, and email (An authorized representative is the mayor or other chief elected official.)
- Contact person name, title, phone, and email (This can be the city auditor or finance director.)
- The city’s financial institution information (e.g., routing and account number, financial institution name and contact information)
- Confirm your city’s total annual budget (the annual operating budget, including both operating and capital expenditures, in effect as of January 27, 2020). Your allocation cannot exceed 75% of this amount.
- Review and sign (these will be attached to your funding request/certification):
- Award terms and conditions agreement (as provided by the U.S. Department of the Treasury)
- Assurances of compliance with Title VI of the Civil Rights Act of 1964 (as provided by the U.S. Department of the Treasury)
- The Authorized Representative AND the Contact Person MUST sign:
- the ARPA certification for cities form,
- assurances of compliance with Title VI of the Civil Rights Act of 1964, and
- awards terms and conditions agreement.
Use the state ARPA certification for cities form to request your funding distribution. In addition, there is an updated state form for direct deposit that will need to be completed and submitted to the ND Office of Management and Budget (OMB) along with your certification and request for funding. Please refer to the highlighted areas on this SAMPLE APPLICATION PACKET for completion details. ALL completed applications should look like the SAMPLE APPLICATION PACKET if your city is requesting funds.
Return completed application, which includes the ARPA Certification for Cities, Form for Direct Deposit, Assurances of Compliance, and Award Terms and Conditions, to OMB at email@example.com.
As a prime recipient of a federal award, your city will be required to report to the U.S. Department of the Treasury on the use of funds. The first report is due by April 30, 2022, and will be required annually. In addition to other reporting requirements, you will be asked to provide:
- NEU recipient number (a unique identification code for each NEU has been assigned by OMB)
- Copy of signed award terms and conditions agreement
- Copy of signed assurances of compliance with Title VI of the Civil Rights Act of 1964
- Copy of actual budget documents validating the top-line budget total provided to OMB as part of the request for funding
- For additional information regarding reporting requirements, please refer to the Reporting Guidance section (beginning on page 12) in the Compliance and Reporting Guidance document provided by the U.S. Department of the Treasury.
If your city receives more than $750,000 in a fiscal year from various federal sources, be aware that you will be subject to the statewide single audit requirements.
As you plan for use of the ARPA funding, be aware of the timelines which require obligation by December 2024 and expenditure by December 2026.
If your city chooses to DECLINE the federal ARPA appropriation, you will still need to complete the top portion of the ARPA certification for cities form and choose one of the two options in Section 2, then sign, date, and return to OMB at firstname.lastname@example.org. If choosing to transfer your city's allocation to the state, you will be provided a transfer form by OMB following your initial certification.