American Rescue Plan Act (ARPA) Funding Strategy

The American Rescue Plan Act (ARPA) was a federal law enacted in 2021 that provided COVID-19 recovery funding through several programs, including the State and Local Fiscal Recovery Funds program. Eligible uses, recipients, reporting obligations, obligation deadlines, and expenditure deadlines depend on the specific ARPA program and the federal agency administering it. Organizations should review the governing program guidance before pursuing an opportunity.

Availability varies by program, recipient, and jurisdiction. For State and Local Fiscal Recovery Funds, recipients generally had to obligate funds by December 31, 2024, and must generally expend funds by December 31, 2026. However, some funding may remain connected to existing local projects, contracts, subawards, or other ARPA programs. A careful review of the relevant agency and funding source is essential.

Galvanize Strategies helps organizations clarify their funding-related objectives, evaluate government and stakeholder dynamics, develop compelling public-interest narratives, and engage policymakers or agencies strategically. Services may include government affairs, procurement navigation, coalition development, public affairs, and communications. The team’s role is to position clients for informed engagement; it does not guarantee a funding award or government action.

The U.S. Treasury distributed State and Local Fiscal Recovery Funds directly to states, territories, Tribal governments, counties, metropolitan cities, and certain other eligible governments. These recipients could use funds themselves or provide funds through contracts, grants, or subawards, subject to Treasury rules. Eligibility for a particular local opportunity depends on the recipient’s program design, procurement process, and applicable requirements.

Allowable uses depend on the ARPA program, but State and Local Fiscal Recovery Funds commonly supported public-health response, economic recovery, assistance to households and businesses, government-service investments, and eligible water, sewer, and broadband infrastructure. Project eligibility must be evaluated against the applicable federal rules, recipient policies, and documented community needs. Requirements can differ significantly across funding sources and jurisdictions.

Start with a concise project description, clear outcomes, realistic budget, implementation timeline, and evidence of community or public benefit. Review the relevant recipient’s funding guidance, procurement rules, reporting expectations, and deadline requirements. Organizations should also identify likely stakeholders and decision-makers early, then prepare messages that connect the proposal to current government priorities and the program’s authorized uses.

Yes. ARPA-funded projects can involve detailed requirements for procurement, recordkeeping, performance reporting, expenditure tracking, and federal compliance. The precise obligations depend on the program and award structure. Recipients and subrecipients should maintain documentation supporting eligibility, costs, deliverables, and outcomes. Strong internal coordination between program, finance, legal, and government-relations teams helps reduce avoidable compliance risks.

Engage a government affairs firm early—before a funding opportunity, procurement process, or policy decision reaches its final stage. Early involvement allows time to understand the political landscape, build stakeholder support, shape a credible narrative, and align outreach with budget and agency timelines. Strategic guidance is especially valuable when an initiative involves multiple public entities, complex policy issues, or high-visibility community interests.