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IMPORTANT UPDATE: NEU reporting deadline extended until April 2022

Non-entitlement unit (NEU) townships will have until April 30, 2022, to file their first “Project and Expenditure Report” for their American Rescue Plan Act (ARPA) dollars, following an extension announced by the U.S. Department of Treasury this morning. The federal department made the decision to push back the reporting deadline following feedback and comments from state and “metropolitan city” recipients (which includes Michigan’s eight largest townships), following their Aug. 31 interim reporting deadline. MTA will continue to provide updates to our members as guidance is released.

American Rescue Plan Act funding will help communities respond to and recover from the pandemic
As the application timeframe to access your township's allocation of American Rescue Plan Act funding narrows (those few townships that have not already applied may still do so!) and townships begin to turn to how to best put the funds to use, MTA continues to provide information, guidance and resources for our townships as we all navigate this new program.

MTA continues coalition work to leverage ARPA funding
As a member of a statewide coalition, MTA continues to work to gain support for a comprehensive plan to leverage the state’s nearly $6 billion in federal ARPA funding. The plan, From Rescue to Prosperity: A Roadmap to Michigan’s Future, focuses the state’s ARPA resources in a coordinated manner across five key areas: infrastructure, fiscal health, thriving communities, strong economy, and public health and safety. We encourage township officials to seek the support of their legislators as the plan would provide direct investment across multiple sectors and maximize the one-time ARPA dollars. Learn more about the plan here.

Guidance and resources for townships

Communities with Qualified Census Tracts have additional uses for ARPA funds to help offset impacts of the pandemic on certain populations, including low-income communities. A listing of all townships with QCTs is available here.


Watch NOW! MTA Q&A: What We Know Now about American Rescue Plan Funding (recorded on July 15)

Questions-and-answers document from the MTA Q&A available here.

Download the handouts from the webinar here.

Special thanks to our Q & A Sponsors!

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More than 97% of Michigan townships have applied to access their American Rescue Plan funds

More than 98% of Michigan's "non-entitlement unit" townships (those under 50,000 population) applied and have received or are in the process of receiving their allocation of federal COVID relief funding through the American Rescue Plan Act. The remaining townships are still able to submit their application through the state Department of Treasury's online application system, though we are not certain for how much longer. If you have already started the application process in the state's online portal, please continue to complete your application. You can check your township’s ARPA application status on Treasury's webpage by viewing Treasury’s “NEU Status” spreadsheet.

Townships have time to make decisions on uses

The funding has very broad flexibility for its uses and does not have to be obligated until Dec. 31, 2024. The funds will be helpful in shoring up, expanding or simply funding your local services. State Treasury, for example, believes that most local units of government-using the formula for revenue loss-will have demonstrable lost revenue due to the pandemic. By showing lost revenue, your township can use the funds on most current township services, to the extent of that loss.

It is important to remember that the funding will be delivered in two tranche payments: the first now, and the second no later than a year after the initial allocation.
As additional guidance is provided and communities around the state and country begin to make decisions on how to best put this funding to use, MTA will continue to provide updates and information for townships.

Michigan Department of Treasury ARPA Webinar and Presentation
Treasury also partnered with Michigan Townships Association, Michigan Municipal League and Michigan Association of Counties for a local government webinar that included guidance and information on receipt of funds, eligible and ineligible uses, reporting requirements and calculation of revenue loss, as well as how local units can strategically utilize ARPA funds. Watch this helpful webinar here and view the presentation here.

National Association of Towns and Townships webinar recording: Guidance on ARPA's State and Local Fiscal Recovery Funds

The National Association of Towns and Townships (NATaT) hosted a webinar offering guidance on the American Rescue Plan Act's pandemic relief resources for townships. This video will help you understand how local fiscal recovery funds can be accessed and spent. MTA will be hosting additional webinars and will continue to share information as it becomes available.


Inside the ARPA

The ARPA contains $1.9 trillion for the coronavirus relief package with $350 billion allocated for state, local and tribal governments to mitigate the fiscal impacts of the COVID-19 pandemic and provide vital services. Local governments can use ARPA funds to cover costs incurred by Dec. 31, 2024, to:

• Provide government services affected by a revenue reduction during the pandemic (in the most recent full fiscal year prior to the emergency); thus, a local unit may use the money to replace the amount of revenue lost during the pandemic compared to the prior full fiscal year

• Make necessary investments in water, sewer and broadband infrastructure

• Respond to the COVID-19 emergency and address its negative economic impacts, including aid to households, small businesses, nonprofits, and industries such as tourism and hospitality

• Provide premium pay-up to $13 an hour or $25,000 per worker-in additional wages for essential employees performing an essential function in the pandemic

The ARPA prohibits the use of the funds for pension or to offset revenue loss due to a tax cut.

The ARPA also includes $10 billion to states for a Critical Infrastructure Projects Program, with Michigan expected to receive $250 million. The monies are to be used for projects that would directly enable work, education and health monitoring-including remote options-in response to COVID-19. Examples provided during the legislative discussion included water, sewer and broadband.