Reminder: ARPA Funds Must Be Spent, Under Contract or Purchase Order By 12/31/24
American Rescue Plan Act funds must be spent or obligated by December 31, 2024 or the township will be required to return these funds next year. Obligated means that the funds are under contract or purchase order by December 31, 2024. This means that any projects that the township would like to do using ARPA funds must be bid and the contract awarded by December 31, 2024. Funds are also considered to be obligated if an item has been ordered for purchase but is not yet received.
ARPA funds can be used for nearly any normal township expense, such as payroll, fuel, insurances, and utilities; road, bridge, sewer, stormwater, public buildings, parks and recreation facilities, or other infrastructure; public safety costs, such as fire, ambulance, and police; and park and recreation expenses. The ARPA fund may used to pay for expenses between now and the end of the year or to reimburse the township for expenses from earlier this year.
Keep in mind that all townships must complete reports in April 2025 showing that these funds were spent by December 31, 2024 or that they were obligated by contract or purchase order. Unspent and unobligated funds will then need to be returned to the federal government . Want to learn more? Click here for PSATS ARPA Fact Sheet. Questions? Give PSATS a call at 717-763-0930.