Time is running out for charitable nonprofits to access funding that will support their recovery from the pandemic and their ability to use this unique funding to implement solutions in their communities.
The Approaching Deadline to Obligate State and Local Fiscal Recovery Funds
Under the American Rescue Plan Act, $350 billion in in Coronavirus State and Local Fiscal Recovery Funds (SLFRF) were allocated to state, local, Tribal, and territorial governments to use in providing “assistance to households, small businesses, and nonprofits, or to aid impacted industries” (emphasis added).
By December 31, 2024, every state, local government, territory, and Tribal government must commit to spending all their SLFRF resources – unobligated funds will be returned to the federal government. The Treasury Department rules and Quick Reference Guide make abundantly clear that governments will satisfy their duty to obligate SLFRF monies by entering into a contract or subaward agreement with charitable nonprofits by December 31, 2024. Once obligated, the funds can be spent anytime before the end of 2026.
Nonprofit Advocacy Resources
While the law mandates charitable nonprofit eligibility, it does not mean that nonprofits are entitled to a share of the funds – you must advocate for them. Many governments still have unobligated SLFRF resources and decisionmakers continue to debate how to allocate remaining funds before December 31, 2024. Use that opportunity to contact local leaders and make sure your nonprofit can access funding.
The following resources can be used to analyze the details of SLFRF, read testimonials from nonprofits that were successful in accessing funds, learn from nonprofit-specific questions, and draft a proposal.
- Nonprofit Guide: Strengthening State and Local Economies in Partnership with Nonprofits: Principles, Recommendations, and Models for Investing Coronavirus State and Local Fiscal Recovery Funds. The third edition of the National Council of Nonprofits' SLFRF report includes ways in which governments can use funds to partner with nonprofits, recommendations for designing and managing programs, and successful models of nonprofit relief and partnerships.
- Webinar: Accessing Remaining COVID Relief Funds Before It Is Too Late. Presentation featuring Treasury Deputy Secretary Wally Adeyemo addressing the availability of SLFRF, successful examples, and how nonprofits can identify and pursue funds.
- Nonprofit Frequently Asked Questions (FAQs): This page answers frequently asked questions by charitable nonprofits on SLFRF eligibility, allowable uses, the funding timeline, and more.
- Template Nonprofit Letter of Inquiry: Nonprofits can use this template to design their own SLFRF proposal and send it to local leaders to set up a meeting.
- Sample Letter: Request for ARPA Funding, Habitat for Humanity of Clallam County, Sep. 14, 2021
-
State and Local Fiscal Recovery Funds: Nonprofit Projects through December 31, 2023, includes data on how governments have used SLFRF to partner with charitable nonprofits.
National Trackers
These organizations regularly update data on spending plans of state and local governments:
- ARPA State Fiscal Recovery Fund Allocations, National Conference of State Legislatures.
- Local Government ARPA Investment Tracker, Brookings Institute.
- State and Local Funds | American Rescue Plan Funds, National Council of Nonprofits.
- State and Local Fiscal Recovery Funds, Pandemic Response Accountability Committee, Council of the Inspectors General on Integrity and Efficiency (CIGIE).
U.S. Department of the Treasury Resources
- Final Rule: Coronavirus State & Local Fiscal Recovery Funds: Final Rule, U.S. Department of the Treasury, Jan. 27, 2022.
- Overview: State & Local Fiscal Recovery Funds: Overview of the Final Rule, U.S. Department of the Treasury, Jan. 6, 2022.
- FAQs: Coronavirus State and Local Fiscal Recovery Funds Frequently Asked Questions, U.S. Department of the Treasury, updated Mar. 29, 2024.