US Treasury Releases More Guidance for States on Federal Funds

The U.S. Department of the Treasury has released new guidance for states to use when distributing American Rescue Plan funds to municipalities with populations of less than 50,000, called non-entitlement communities. This includes grant award terms and conditions, calculations for distributions, and a process for municipalities to submit required documentation, including proof of 2020 budget, direct deposit information, and DUNS number before the funds are released.  

Because Pennsylvania’s total allocation for non-entitlement communities as determined by Treasury is larger than the initial estimate, townships can expect to receive a bit more than is listed on psats.org. Distributions are based on a municipality’s population divided by the total population of non-entitlement communities in the state, multiplied by the state’s total allocation for non-entitlement communities, which is $983 million. 

PSATS expects more changes in federal guidance over the coming weeks so reiterates its recommendation to move slowly, plan and explore options rather than racing to spend the funds.  Again, it is better to do things right, than fast. PSATS, and Premier Partner Zelenkofske and Axelrod, will be prepared to service your questions on eligibility and compliance. 

The guidance does provide for states that are not yet prepared to distribute these funds to request a waiver and delay the release of the funds. It is unclear if the Commonwealth will request a waiver, but if so, it would delay township’s receipt of these funds. To learn more, click here.