With the Dec. 31 deadline quickly approaching for obligating American Rescue...
With the Dec. 31 deadline quickly approaching for obligating American Rescue Plan Act funds, municipal officials are leveraging U.S. Department of the Treasury resources to help them avoid any potential clawing back of federal funds. Passed in March 2021, ARPA provided critical financial assistance to state and local governments, among other entities, as the country was emerging from the COVID-19 pandemic. Under the law, ARPA’s State and Local Fiscal Recovery Funds must be obligated by Dec. 31, 2024, and expended by Dec. 31, 2026. The Treasury established a specific definition for “obligation,” as follows: • An order placed for property and services and entry into contracts, subawards, and similar transactions that require payment, which may include, an order placed for...
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