American Rescue Plan Act Montana Water and Sewer ...

American Rescue Plan Act Water & Sewer Infrastructure Grants Program Overview & How to Apply

Montana Department of Commerce Community Development Division

June 14, 2021

America Rescue Plan Act 101

American Rescue Plan Act (ARPA) signed into law March 11, 2021

$1.9 trillion to address COVID-19 and for economic recovery

$350 billion to state, local, and tribal governments for recovery

ARPA - Eligible Uses

Funds may be used to: Respond to the public health emergency or its negative economic effects Support essential workers with higher pay Backfill state and local government for lost revenues during pandemic Make necessary investments in water, sewer, or broadband infrastructure

Funds may not be used for: Budget stabilization, rainy day fund, reserve account State match for some federal grants Paying outstanding debt Other infrastructure

What does this mean for Montana?

Montana to receive total of ~ $2.8 billion

$906.5 million State Fiscal Recovery Funds $343.5 million Local Fiscal Recovery Funds

Funds obligated by December 31, 2024 Funds spent by December 31, 2026

Local Fiscal Recovery Funds,

$343,536,373

State Fiscal Recovery Funds,

$906,418,527

Local Fiscal Recovery Funds

AKA "603 funds" or "local recovery funds" or "LFR"

$343.5 million to towns, cities, and counties based on "CDBG" formula $49 million to Billings, Missoula, Great Falls $86.3 million to other towns/cities $207.5 million to counties No more than 75% of local government's annual

budget

Recovery funds must be used to meet ARPA objectives

Direct Treasury Payments to Counties, $207,597,597

State Payment to Non-entitlement Units, $86,377,829

Direct Treasury Payments to

Metropolitan Cities, $49,560,947

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