On March 6, U.S. Senate Majority Leader Chuck Schumer (D-N.Y.) sent a letter to U.S. Treasury Secretary Janet Yellen urging the Department to allow American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (Recovery Fund) to be used to fund capacity building investments in order to access new competitive federal funding opportunities. Specifically, Leader Schumer requested this clarification to the Recovery Fund’s eligible uses for funding opportunities made available from the Bipartisan Infrastructure Law, the Inflation Reduction Act, the CHIPS and Science Act and the Bipartisan Safer Communities Act.

Although not specifically enumerated in Treasury’s Final Rule for the Recovery Fund, Senator Schumer states that this request aligns with one of the Recovery Fund’s stated goals of local economic recovery from the COVID-19 pandemic. The letter also specifies that making Recovery Funds eligible for this use, including the creation of dedicated offices and initiatives for grant writing and capacity building, would make it easier for smaller and rural communities to apply for federal resources.

Since the American Rescue Plan Act (ARPA) was enacted in March 2021, counties have been working tirelessly with Treasury to ensure Recovery Funds have the flexibility to properly address our unique needs and that we are fulfilling our role as sound financial stewards.

NACo also has several resources available to counties to assist with the continued implementation and investment of ARPA programs, such as the Recovery Fund and the Local Assistance and Tribal Consistency Fund, as well as other recently enacted federal legislation and related programs.

NACo will continue to work with federal partners to ensure that counties have the flexibility to continue to spur long-term economic recovery and growth in our communities and keep members apprised of any new developments.

To read the full letter, click here.