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The ARP Offers Critical Local Government Funding

Mar 15, 2021 12:22:56 PM

Throughout our history as a company, we know how dependent state and local governments are for revenue through various sources, from sales tax to hospitality tax, and beyond.

But during the 2020-2021 crisis, these revenues cratered in many areas, while at the same time, communities needed to lay out significant funds for PPE, overtime, small business support, feeding programs, etc. just to keep going.

Local governments have needed a lifeline. The $1.9T American Rescue Plan may just be the that savior.

Here’s what the ARP offers

  • Can cover expenditures and replace revenue lost due to the pandemic, which gives local governments significant leeway to use the funds—all without an expiration date
  • $195.3 billion to be divvied up among the 50 states and Washington, D.C., plus $25.5 billion to be split evenly, with additional funds to be split proportionally based on the number of unemployed residents during winter of 2020
  • $130.2 billion for local governments, of which $45.6 billion goes to cities based on factors such as population, growth, poverty, and overcrowding.
  • Plus, $19.5 billion to states to allocate among other municipalities and the remaining $65.1 billion to counties.
In addition to this general cash aid, the ARP also features funds earmarked for particular applications. Take a look:
  • $30 billion for transit

  • $130 billion for k-12 schools, with prioritization for districts with significant proportions of lower-income families

  • $10 billion for a Coronavirus Capital Projects Fund, which directs at least $100 million to expand broadband in each state, Washington, D.C., and Puerto Rico
For a side-by-side comparison of ARP and CARES Act funding, here's a handy chart.


How will your community invest your ARP dollars? Some of our municipal partners have taken this opportunity to provide support to local businesses, improve technology—or both.

Our online payment and processing platform, Localgov, is specifically designed with the needs of local governments and their taxpayers in mind. Localgov offers convenient, consumer-style tools that facilitate quick compliance, aka payment of your local registration costs, fees, or taxes.

As the economy begins to open back up and diners, shoppers, and travelers flood back, your local business owners are going to be busy. Make their recovery easier, with civic tech that works, gives multiple payment options, and offers quick payment confirmation.

Let’s talk with your finance and technology teams to discuss how our online tax compliance and processing platform, Localgov, is right for you—and might be covered by CARES or ARP funds.

Shylo Bisnett

Written by Shylo Bisnett

Shylo Bisnett is a Content Marketing Specialist at Azavar and Localgov. In addition to managing a career as a freelance strategic writer, she also founded and chaired a local not-for-profit organization geared toward building relationships among residents, elected officials, and non-governmental organizations.