Capitol Buzz
May 25, 2021
Treasury Releases Guidance on Distributing ARPA Funds to Communities under 50,000 in Population

Late yesterday, the U.S. Department of the Treasury released an 8-page Guidance on Distribution of Funds to Non-Entitlement Units of Local Government (NEUs). NEUs are all cities, villages and towns under 50,000 in population.

Calculate your Community's Allocation. The Guidance at page 3 provides the formula for calculating your community's full ARPA allocation. You need three numbers to calculate your community’s total ARPA funding, whihc will be made in two payments one year apart:

  1. The Wisconsin Non-entitlement units (NEU) aggregate population, which is 3,932,200.
  2. Wisconsin’s total ARPA allocation for NEUs, which is $411,577,691.
  3. Your community's population as found here on the U.S. Treasury’s list of local governments and their populations.

To calculate your community's ARPA allocation divide your community's population by 3,932,200 and multiply that number by 411,577,691.

Example: City of Clintonville (population as listed on Treasury document = 4,391)
4,391 divided by 3,932,200 = .00111668
multiply .0011668 by $411,577,691

Equals: $459,599.62 total ARPA payment for the City of Clintonville

States Must establish a Process for NEUs to submit requests for Payment. Most of the 8-page guidance informs states about how to receive the NEU ARPA payment for distribution to NEUs and the process for distributing the payments to the state's NEUs. According to the guidance, states should establish a process that will allow NEUs to provide information and documentation necessary to disburse funds to NEUs.

The information and documentation collected by the state prior to initiating payment must include the following:

  • Local government name, Entity’s Taxpayer Identification Number, DUNS number, and address
  • Authorized representative name, title, and email
  • Contact person name, title, phone, and email
  • Financial institution information (e.g., routing and account number, financial institution name and contact information)
  • Total NEU 2020 budget (defined as the annual total operating budget, including general fund and other funds, in effect as of January 27, 2020)
  • Award terms and conditions agreement (as provided by Treasury to be signed)
  • Assurances of compliance with Title VI of the Civil Rights Act of 1964 (as provided by Treasury to be signed) 

Read the full Guidance here. The League will provide more information and analysis in future Legislative Bulletins.