Treasury addresses ARP funding questions
during Tuesday call
Officials from the U.S. Treasury and the White House gave more context to the American Rescue Plan (ARP) spending rules during a brief video call on Tuesday.
Among the key questions addressed during the 30-minute session:
1. Will Treasury provide “pre-clearance” of plans to spend ARP direct investment funds?
There is no pre-clearance process for programs from Treasury. It will not give entities clearance on programs prior to launching them. It is up to the entity to determine if the program is allowed or not under the guidance provided by Treasury. However, Treasury does plan to make regular updates to its FAQs.
2. Can you put your ARP direct investment funds in interest-bearing accounts? If so, what uses are allowed for the interest earned?
Yes, a county can put the funds in interest-bearing accounts. The county gets to keep the interest earned and can use it for broader purposes.
3. Is there a deadline to apply for the ARP funds?
No, there is no deadline to apply. MAC encourages any county that has not applied through the portal to do so as soon as possible.
4. At what level can counties report on payroll support for public safety employees?
The Interim Final Rule does allow for a general allowance for operating units and departments, not just at the individual employee level. It also allows a portion of the time, not necessarily 100 percent. It also notes that you do NOT necessarily need to track the time sheets. But you will need to justify the time estimates. Read page 13 of the new NACo analysis on this specific issue.
NACo Executive Director Matt Chase, who moderated the session, urged counties to consult NACo’s new analysis of the initial guidance on spending ARP.
Treasury continues to field questions from local officials across the country, so more information will be coming as rules are developed and finalized.
