Treasury Issues Pandemic Funding Guidance

What happened: The U.S. Treasury Department Jan. 27 issued final guidance on the use of $350 billion in American Rescue Plan Act (ARPA) funding given to state and local governments last March to assist during the COVID-19 pandemic. It confirms surface transportation construction is an eligible use for some, but not all, of the support. Localities can use $10 million or the amount of lost revenue due to the pandemic, whichever is greater, for road, bridge, and public transportation construction.

Why it’s important: The final guidance is an improvement over preliminary rules Treasury issued in April and clarifies the potential use of funds for surface transportation projects. ARTBA and stakeholder allies submitted two letters to Treasury last year: in March asking for broad eligibility of the $350 billion, in November to address the increase in construction materials costs. Treasury addressed the first issue; it did not clarify the second.

What’s next: ARTBA will continue urging Congress and the administration for the broadest eligibility possible for the ARPA funds. We will update members as developments warrant.