What is the Local Fiscal Recovery Program?

Backed by $119.2 million in Federal funding from the American Rescue Plan Act of 2021 (ARPA), the Local Fiscal Recovery Program is meant to infuse funds into Maine towns and cities to support a variety of community priorities, such as addressing the economic or public health impacts of the COVID-19 pandemic, replacing lost public sector revenue, or investing in water, sewer, and broadband infrastructure.

 

Which entities are eligible for this funding?

Local Fiscal Recovery Funds will be issued to local governments across Maine based upon their relative share of the non-entitlement unit population, not to exceed the amount equal to 75 percent of the most recent municipal budget as of January 27, 2020 in accordance with guidance from the U.S. Treasury.

 

Which entities are not eligible for this funding?

Large metropolitan cities (of more than 50,000 people) and counties will receive funding directly from U.S. Treasury, while non-entitlement units of local government (NEUs) will receive funding through a transfer from the state.

 

How can NEUs access this funding?

NEUs in Maine will begin receiving distributions once they submit a request for distribution and required documentation via the State's online portal.

 

How does an NEU use the portal?

The State's online portal is available online, and full instructions are available here. For support or with questions, municipal NEUs may contact: 888-804-2544 or Maine.ARPAsupport@hornellp.com.

 

Are there restrictions on eligible uses of Local Fiscal Recovery Funds received by NEUs?

Yes, Local Fiscal Recovery Funds must be spent on eligible expenditures, which include:

  • Supporting public health expenditures
  • Addressing negative economic impacts caused by the public health emergency
  • Providing equity-based services for disproportionately impacted populations
  • Replacing lost public sector revenue
  • Providing premium pay for essential workers
  • Investing in water, sewer, and broadband infrastructure

 

Eligible expenditures are defined by the U.S. Treasury and not further restricted by the State of Maine.

 

Will NEUs be required to report on the use of these funds?

Yes, NEUs are considered prime recipients of U.S. Treasury and will be responsible for reporting on their compliance with use of FRF directly to U.S. Treasury. As such, NEUs, not the State of Maine, will be financially liable for any NEU expenditures that are deemed ineligible.

 

NEUs will be required to provide annual reporting to U.S. Treasury on all projects including expenditures, project status, project demographic distribution, subawards, civil rights compliance and other required programmatic data and information. NEUs will also need to provide copies of the signed award terms and conditions agreement and the Assurances of Compliance with Title VI of the Civil Rights Act of 1964 as well as budget documentation with the reporting submission.

 

How will NEU allocations be determined?

The State of Maine has been allocated $119,223,764 to distribute to NEUs. Local Fiscal Recovery Funds will be issued to local governments across Maine based upon their relative share of the non-entitlement unit population, not to exceed the amount equal to 75 percent of the most recent municipal budget as of January 27, 2020 in accordance with guidance from the U.S. Treasury. The population count to be used to determine NEU allocations was provided by U.S. Treasury and based on the most recent data available from the U.S. Census Bureau. NEU allocations were determined by U.S. Treasury. The State of Maine does not have the authority to change a NEU’s initial allocation.

 

How will NEUs receive their allocation?

Eligible NEUs that submit the required documentation will receive their allocations in two equal disbursements. The first disbursement will be made after a request for payment is submitted with all required documentation via the State's online portal. The second disbursement will be made approximately one year after the initial disbursement once the state has received its second tranche of funding from U.S. Treasury.

 

How does an NEU log into the State’s online ARPA program management portal to submit a request for payment?

The State will create accounts in the portal for a primary user from each local government based upon its records. Full instructions and the portal log in link are here.

 

How do I update the users in the portal?

Full instructions are available here. Municipal NEUs may contact: 888-804-2544 or Maine.ARPAsupport@hornellp.com.

 

Which account will NEUs receive payment? Where will NEU allocations be disbursed?

Payment will be made based on the information contained in your State of Maine vendor profile.

 

What information will my local government be required to provide as a part of the request for payment?

Full instructions are available here. NEUs will be required to provide the following information in their request for payment.

  • local government name, Taxpayer Identification Number, and address
  • DUNS number
  • authorized representative name, title, and email address
  • contact person name, title, phone, and email address
  • financial institution information, including routing and account numbers
  • total annual budget (per U.S. Treasury, this is “the most recent budget in effect as of January 27, 2020, including both operating and capital budgets”)
  • an electronic version of the signed Award Terms and Conditions Agreement as provided by U.S. Treasury: https://home.treasury.gov/system/files/136/NEU_Award_Terms_and_Conditions.pdf
  • an electronic version of the signed Assurance of Compliance with Title VI of the Civil Rights Act of 1964 as provided by U.S. Treasury: https://home.treasury.gov/system/files/136/Title_VI_Assurances.pdf
  • SAM.gov registration (this item is not required to receive the fund distribution but will be required by U.S. Treasury for financial and programmatic reporting purposes)

 

For support, Municipal NEUs may contact: 888-804-2544 or Maine.ARPAsupport@hornellp.com.

 

Who is considered an Authorized Representative?

Full instructions are available here. The Authorized Representative should be an individual authorized by a sitting government official to act on behalf of the municipality vis-à-vis the Local Fiscal Recovery Program.

 

Who should be provided as the Contact Person?

Full instructions are available here. The Contact Person should be an individual authorized by a sitting government official to act on behalf of the municipality vis-à-vis the Local Fiscal Recovery Program.

 

What if an NEU does not have a DUNS number?

If an NEU does not have a DUNS number, visit https://fedgov.dnb.com/webform/ to complete the registration process.

 

What if an NEU is not registered at SAM.gov?

The NEU does not have to be registered at SAM.gov to request payment from the State, but it will be required to be registered prior to submitting the initial mandatory reporting to U.S. Treasury. The NEU can visit https://sam.gov/content/entity-registration to complete the registration process.

 

What if an NEU does not wish to receive funds?

NEUs that prefer to decline funding may elect to transfer their allocation back to the state by submitting a Decline of Funds Notice via the State's online portal. If a NEU transfers its allocation back to the state, the NEU’s allocation will be added to the State’s overall State Fiscal Recovery Fund allocation and the NEU will no longer be legally obligated under the award with respect to accounting for the uses of the funds and the reporting on such uses. The allocations of NEUs who are non-responsive and do not submit a Request for Payment or Decline of Funds Notice within 60 days will be reallocated to the residual NEUs.

 

Where can I obtain additional information?

Additional information may be found on the U.S. Treasury website for State and Local Fiscal Recovery Funds.