More Flexibility for the American Rescue Plan’s State and Local Fiscal Relief Funds
January 19, 2023
Congress passed the final budget package for 2023 in late December, which included a significant provision to make the American Rescue Plan’s State and Local Fiscal Relief Funds (SLFRF) more flexible, known as ARPA Flex.
The ARPA Flex provision, which was championed by Senator Alex Padilla, provides additional flexibility for local government to spend their allocations of the Coronavirus State and Local Fiscal Recovery Funds, including:
- Spending to provide emergency relief from natural disasters, including temporary emergency housing, food assistance, financial assistance for lost wages, or other immediate needs.
- Spending on transportation infrastructure eligible projects and matching funds.
- Spending on any program, project, or service that would also be eligible under HUD’s Community Development Block Grant program.
The amendment caps the amount a grantee may spend on these new purposes at the greater of $10 million or 30% of the total grant amount.