As a part of the recently passed spending bill for the federal 2023 budget year, Congress expanded allowable uses of federal COVID relief funds to include roads and bridges as well as aid to people impacted by natural disasters.
The exact details and rules of the expanded uses are still in development and should be released by Treasury in late February. However, the revised rules passed in the federal spending bill provided some early idea of how funds could be used. Under the
revised rules, cities would be allowed to:
- Use up to $10 million or 30% of their ARPA allocation for transportation projects funded by the Infrastructure Investment and Jobs Act (IIJA).
- Use ARPA funds to provide local matching amount necessary to access federal grants for road and transportation projects created under IIJA.
- Provide natural disaster relief, such as temporary housing, food, and financial assistance.
While the changes are welcomed, the newly released rules will only truly benefit cities who received more than $10 million in ARPA funds or cities that chose not to claim the standard allowance for general government services created under the final rule released in January 2022.
Cities who elected to claim the standard allowance for general government services were already able to use their ARPA funds for similar projects and programs.
In Washington state, investments in infrastructure are top spending categories for cities with tens of millions of dollars flowing to water and sewer system upgrades, road and sidewalk improvements, and public works equipment.
To learn more about how Washington cities are investing ARPA funds, check out our latest issue of the Cityvision magazine.