American Rescue Plan Act (ARPA) Funding


American Rescue Plan Act

The American Rescue Plan Act (ARPA) provides urgent and targeted funding to give communities the resources needed to assist with the repercussions related to the COVID-19 pandemic. The American Rescue Plan provides a total of $1.88 trillion in federal investment. The Fiscal Recovery Funds was created to support State and local governments responding to the impact of COVID-19. The Department of Treasury release the Interim Final Rule May of 2021 and following some feedback from state and local government issued the Final Rule which will take effect on April 1, 2022. This will be used to help distribute funding to the nation effectively, making certain it goes to those who have been impacted the most. The Final Rule is used as a guideline for State and Local governments on how funding should be managed and distributed.


Town of Babylon Recovery Plan 2022 (PDF)


The Coronavirus State and Local Fiscal Recovery Fund

The Coronavirus State and Local Fiscal Recovery Funds (SLFRF), a part of the American Rescue Plan, delivers $350 billion to state and local governments across the country to support their response to and recovery from the COVID-19 public health emergency. Its goal is to fight the pandemic by supporting communities struggling with its economic impacts by making investments that support long-term growth and opportunity. The Interim Final Rule and went into effect to set the guidelines and distinguish between eligible and ineligible uses so that state and local governments have the ability to use SLFRF once recipients receive funding. The focus of the SLFRF is to fight the pandemic and support businesses struggling with its public health and economic impacts, maintain vital public services, and build an equitable recovery by supporting long-term growth and opportunity in communities.

The funding must be obligated by December 31, 2024, and expended by December 31, 2026. 

Goals of the Town 

The Town of Babylon Received $13.8 million. With those funded we created goals of distribution under the guidelines of the Final Rule to respond to the far reaching negative economic impact of Covid-19. Below is how we plan to/ have distributed the funds to achieve our goals of the town to recovery from the pandemic under the guidelines of the Final Rule.

Non-profits / Civic Organizations:

A major focus to relieve the severe impact of Covid-19 is targeting the economic impact that fell on low-income and underserved communities. These pre-existing disparities in low-income communities’ verses others, only amplified during the pandemic. We put our focus on diversity and assisting communities that had been disproportionately impacted. The nonprofits/Civic organizations needed assistance due to receiving increased demand for services during the pandemic, along with declines in revenue sources such as donations and fees.

As of February 9, 2022

  1. Nonprofits: $981,234 - through the Direct Support Program $6 million funding  
  2. Family Life Center Supportive Grant: $72,214
  3. Veterans: $301,905 - - through the Direct Support Program $6 million funding  

Small Business:

Major challenges due to the pandemic due to shutdowns, decrease in revenue, and increase cost due to Coivd-19 compliance. The funds will help respond to the impact that small businesses faced, especially those in disproportionately impacted areas with pre-existing disparities. Small businesses that are eligible are those that experienced negative economic impacts or disproportionate impacts of the pandemic and meet the definition of ‘small businesses. The definition of small businesses as well as how to identify how one can be impacted by the pandemic therefore eligible of funds, can be found through the link at the bottom of this page. 

As of February 9, 2022 

  1. Small Businesses: $4,163,827 - through the Direct Support Program $6 million funding 
  2. Minority/ Women-owned Business Enterprises (MWBE): $981,234 - through the Direct Support Program $6 million funding  


Funding may be used to make necessary investments in several types of infrastructure. Any additional resiliency measures that would be needed to adapt to current climate change can qualify for funding. 

As of February 9, 2022

  1. Grand Canal American Venice Shoreline Stabilization - $102,200
  2. Boating Berth Reimbursement - $290,000

Public Sector Capacity: 

For administrative recipients can consider employees entirely devoted to responding to COVID-19. From this they can have their payroll and benefits fully covered by SLFRF if the employee, or his or her operating unit or division, is “primarily dedicated” to responding to COVID19 response. The definition of primarily can be found in the link at the bottom of the page.

As of February 9, 2022

  1. Assistant to ARPA Director: $61,000

Links and Resources

  1. ARPA - Overview of Final Rule