In March 2021, Congress passed the $1.9 trillion American Rescue Plan Act (ARPA). ARPA delivered resources to mount a public health response to COVID-19; directed economic relief to workers, families, and small businesses; and provided fiscal aid to state, local, and tribal governments through the $350 billion Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. For local governments, which received $130 billion, the SLFRF program provided an unprecedented amount of funding alongside considerable flexibility to address both the acute effects of the COVID-19 crisis and the long-standing local challenges that exacerbated the impacts of the crisis on economically disadvantaged communities. The Department of the Treasury set deadlines for SLFRF dollars to be obligated by December 31, 2024 and spent by December 31, 2026.

To mark ARPA’s two-year anniversary, this report examines how local governments utilized the SLFRF program to spur an equitable economic recovery. Over the past two years, our organizations—Brookings Metro, Accelerator For America (AFA), and the National Association of Counties (NACo)—have been tracking ARPA implementation and working with local leaders in cities and counties across the nation on how to best deploy their SLFRF allocations. These on-the-ground engagements yielded considerable insights on how local governments navigated the complexities of ARPA implementation. Building on those applied projects, in early 2023, we conducted in-depth interviews with local decisionmakers in 17 cities and counties to explore how they engaged community stakeholders, established recovery priorities, developed strategic investments, and monitored and evaluated ARPA’s early impacts.

Three major findings emerged from this research, each corresponding to a key phase of ARPA planning and implementation within local governments:

  • Local government leaders set priorities for local recovery, which were influenced by regulatory and political uncertainty, strategic continuity, and community engagement. In spring 2021, city and county officials were still very much in crisis mode, yet most all recognized the strategic importance of the SLFRF allocations they were about to receive. Confronted with this balance of crisis management and longer-term strategic planning, localities have been impressively entrepreneurial and innovative in setting priorities for SLFRF dollars in ways that drive greater inclusion and equity in their communities. Local leaders arrived at these priorities amid considerable uncertainty in the SLFRF rulemaking process and broader political debates in their communities. Some local governments established strategic priorities for ARPA investments based on pre-existing strategic plans, while others used the crisis to forge new or refreshed visions. Finally, community engagement in priority-setting was possible but not universal, and its degree differed from place to place.
  • Local governments pursued “dual-track” investment strategies, using the SLFRF program to both implement emergency relief and government stabilization measures as well as invest in rebuilding a more equitable economy. When the federal government allocated the first tranche of SLFRF dollars in spring 2021, local health and fiscal conditions necessitated that many local governments use the resources to invest in three key pillars—government operations, public health, and community aid—that would stabilize communities and local government. This first track (investments to rescue the economy) was followed by a second track focused on rebuilding the economy on a stronger, more inclusive foundation via investments in workforce, small businesses, housing, infrastructure, and neighborhood revitalization. Ultimately, well-designed approaches shared three characteristics. First, they were inclusive in their design—targeting historically disadvantaged households and neighborhoods. Second, they were sustainable—primarily one-time capital investments that will deliver sustained returns over time. And third, they focused on systems-level design that leveraged additional funders and improved capacity across entire policy domain systems (e.g., workforce, small business, community development).
  • Local governments are responsible for measuring impact across a range of projects, which is forcing them to upgrade their evaluation and tracking capabilities. One concern in implementing the SLFRF program was whether local governments could expand their performance management systems to track obligated and expended funds, assess outcomes, and report both pieces of information in a timely fashion to the Treasury Department. A relatively small set of local governments are investing in capacity to make the data that they report to Treasury accessible to the public at large. These online trackers and dashboards are allowing researchers, the media, and citizens to better understand the program’s early outcomes across individual projects and broader strategic domains. Given the SLFRF program’s expected impact on broad local outcomes (rather than just the outcomes reported to Treasury), some local governments are also using a more comprehensive set of indicators to track the recovery and provide critical context for their investments.

Finally, with the ARPA expenditure deadline looming, local leaders are focused on the long-term implications of SLFRF investments for their communities. This multidimensional challenge requires local leaders to sustain ARPA funding impact through a mix of strategic initiatives, existing and new complementary funding, greater cross-jurisdictional collaboration, and new impact-performance metrics. Federal agencies are key partners to local governments in ARPA funding, so enhancing flexible funding and organizing across those agencies could make a difference in ongoing implementation.

Map 1: This report draws upon interviews with 17 local governments

 

Related News

THE_County Countdown_working_image-4.png
Advocacy

County Countdown – March 25, 2025

Every other week, NACo's County Countdown reviews top federal policy advocacy items with an eye towards counties and the intergovernmental partnership. This week features budget reconciliation, FY 2025 funding and more.

Image of Water-infrastructure.jpg
Advocacy

NACo Legal Advocacy: San Francisco v. Environmental Protection Agency (EPA)

San Francisco v. Environmental Protection Agency (EPA) has implications for the ability of county governments that own and operate wastewater treatment facilities to comply with National Pollutant Discharge Elimination System (NPDES) permit requirements. 

Image of Gavel_3.jpg
Advocacy

NACo Legal Advocacy: Lackey v. Stinnie

Lackey v. Stinnie will impact the ability of state and local governments to avoid paying litigation fees in a civil rights case if they change their conduct (i.e. repeal a law) after a court has granted a preliminary injunction.

Image of Capitol-spring.jpg
Advocacy

Congress passes “full-year” Continuing Resolution through September 30, 2025

On March 14, the U.S. Senate voted  to pass the Full-Year Continuing Appropriations and Extensions Act of 2025 to further extend appropriations and avert a government shutdown through the end of Fiscal Year (FY) 2025 on September 30.

Rep. Celeste Maloy (R-Utah) addresses NACo's Public Lands Steering Committee March 1. Photo by Denny Henry
County News

History fuels optimism for county veteran Maloy

The second-term member of Congress from Southern Utah sees parallels to the 1930s government transformation.

Upcoming Events

white house
Webinar

NACo Membership Series: First 100 Days, Week 9

Join NACo for week nine of a membership series providing timely updates and analysis on key developments during the first 100 days of the Trump administration. These calls will focus on policies and actions that directly impact counties, including federal funding, regulations and intergovernmental partnerships. Join us to stay informed on how these changes may shape county priorities and operations.

white house
Webinar

NACo Membership Series: First 100 Days, Week 10

Join NACo for week ten of a membership series providing timely updates and analysis on key developments during the first 100 days of the Trump administration. These calls will focus on policies and actions that directly impact counties, including federal funding, regulations and intergovernmental partnerships. Join us to stay informed on how these changes may shape county priorities and operations.

A bundle of $100 bills secured with a band that reads "Student Loan Debt" with a golden graduation tassle laid on top
Webinar

The Current State of Student Debt and Forgiveness (NACo's Partnership with Savi Simplifies Student Debt Relief), a Public Promise Insurance Webinar

A webinar for HR and county leadership looking for ways to engage county employees

Did you know that over 9 million public service workers, including full-time county employees, are eligible for student debt forgiveness through the Public Service Loan Forgiveness program? Yet, fewer than 2% have received relief, and only 15% have submitted the required forms to access this benefit

The real question is: Are they aware of it? Are they maximizing their student debt forgiveness?

Please join us as we speak with student debt forgiveness expert Tony Raffa, who will clear up much of the confusion over:

  • Executive orders and what they mean for employees

  • Changes in the Department of Education and its impact

  • Current student debt relief programs and who is eligible

  • Common issues with applying for and receiving student debt forgiveness

  • A new tool is available to help your employees calculate their potential student debt relief and cut through the red tape when applying

  • Show how the tool helps employees save an average of $2,244 a year, freeing up space for them to hit their financial goals

This webinar is brought to you by NACo EDGE, establishing people, purchasing, and performance cost-saving solutions that can be applied to counties nationwide. EDGE is owned by NACo, advised by county leaders and 100% focused on solutions for U.S. Counties. Learn more about NACo EDGE here and about Public Promise Insurance here.

For more information check out the event page

white house
Webinar

NACo Membership Series: First 100 Days, Week 11

Join NACo for week eleven of a membership series providing timely updates and analysis on key developments during the first 100 days of the Trump administration. These calls will focus on policies and actions that directly impact counties, including federal funding, regulations and intergovernmental partnerships. Join us to stay informed on how these changes may shape county priorities and operations.

white house
Webinar

NACo Membership Series: First 100 Days, Week 12

Join NACo for week twelve of a membership series providing timely updates and analysis on key developments during the first 100 days of the Trump administration. These calls will focus on policies and actions that directly impact counties, including federal funding, regulations and intergovernmental partnerships. Join us to stay informed on how these changes may shape county priorities and operations.

white house
Webinar

NACo Membership Series: First 100 Days, Week 13

Join NACo for week thirteen of a membership series providing timely updates and analysis on key developments during the first 100 days of the Trump administration. These calls will focus on policies and actions that directly impact counties, including federal funding, regulations and intergovernmental partnerships. Join us to stay informed on how these changes may shape county priorities and operations.