A last call to invest in communities through ARPA funding

There are less than two months left in 2024 – do you know where your state’s ARPA dollars are headed? As the deadline looms for governments to obligate these funds, Beam is here to help you invest in programs for your community.?

What are ARPA dollars?

The 2021 American Rescue Plan Act (ARPA) offered critical support to communities across the U.S. through its State and Local Fiscal Recovery Funds (SLFRF) program. This sent $350 billion in funding to more than 30,000 state, local, territorial, and Tribal governments to help communities recover from the COVID-19 pandemic.?

Additionally, a portion of these funds were allocated to build more resilient communities and create a stronger national economy. Municipalities were encouraged to make investments that support long-term growth and opportunity. State and local governments were left with broad authority to spend in their communities according to their needs, within the guardrails set by the Department of the Treasury. These funds could be used for things like economic recovery grants, small business loans, affordable housing, and infrastructure improvements.?

However, to ensure these funds make their way into communities, municipalities not only must budget their SLFRF dollars but also take steps to create a contract by December 31, 2024.

Many communities risk losing unobligated funds

State and local governments, as well as community-based organizations, have been at the forefront of figuring out the best ways to administer these funds. Yet, with the December 31 deadline looming, a significant amount of funding is at risk of being returned, leaving money on the table for many communities in need.

As of September, nearly 25% of funding intended for large cities and counties remained unobligated. Our analysis of publicly available U.S. Department of the Treasury data shows hundreds of millions of dollars across hundreds of jurisdictions that still need to be obligated and spent. While there’s still time to spend ARPA funds, unobligated funds are the ultimate “use it or lose it” for this critical public infrastructure investment.?

Unfortunately, this unobligated funding could cover programs intended to create more resilient communities, like Title 1 projects. These programs, projects, and services are typically eligible under HUD’s Community Development Block Grant (CDBG) and can include things like:?

• Grants for small businesses and nonprofits
• Rental housing, homeownership assistance, and housing stability programs
• Home improvement programs for lower and moderate-income households
• Eviction prevention and homelessness services
• Child care services
• Public services for youth, seniors, and people living with disabilities
• Workforce and economic development programs

Additionally, unobligated SLFRFs can be used to rebuild communities impacted by natural disasters in 2024. Since natural disasters can cause a devastating impact on rural communities, families with low incomes, and historically excluded populations, the Treasury specifically encouraged SLFRF recipients to “consider how the emergency relief they provide supports all communities in resuming their lives after a natural disaster.” With this in mind, programs like temporary housing and cash assistance are included in the eligible expenditure category.

Helping governments distribute these funds to your community

At Beam, we understand the challenges of implementing transparent, equitable, and effective government programs. But these challenges shouldn’t be why communities miss out on critical funding they’re entitled to.?

Beam’s cash distribution platform is designed to support programs that catalyze economic development. We partner with human services, economic development, and social support organizations to help them quickly and easily manage the application and delivery of community development funds.?

If your government agency hasn’t obligated SLFRF spending, don’t miss this chance to make an impact on your community.?

Beam is here to rapidly support organizations seeking to obligate ARPA funding for community investments. We offer a solution that empowers agencies to quickly launch programs, manage cases, disperse aid, and track impact–all in one place. And we can get it going in a matter of days.

We’re here to help create pathways to prosperity and communities that thrive. Please get in touch to learn how we can make an impact in your community.