DATE: June 30, 2026
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, County Administrative Officer
SUBJECT: State Local Fiscal Recovery Funds - Progress Report and Options
RECOMMENDED ACTION(S):
TITLE
1. Receive progress report on the County's American Rescue Plan Act - State Local Fiscal Recovery Fund (ARPA-SLFRF) Program;
2. Discuss and provide direction regarding ARPA-SLFRF for the portion of the unclaimed funds by June 30, 2026, expenditure deadline; and
3. Direct staff to return to your Board by October 2026, with final recommendations to reallocate identified funding availability within the ARPA-SLFRF Expenditure Plan.
REPORT
Under the first recommended action, your Board will receive a progress report on the County's American Rescue Plan Act, State Local Fiscal Recovery Fund (ARPA-SLFRF) Program's expenditure plan. This agenda item will highlight program achievements, as well as current challenges impacting the County's ability to process timely claims. Recommended actions two will allow your Board to discuss and provide direction as the County prepares to implement the conclusion of the ARPA-SLFRF Program. It is recommended that your Board direct the CAO's Office to issue 30-day written notices by July 6, 2026, to the active subrecipient programs which will initiate the formal subrecipient agreement amendment process.
Recommended action three will direct staff to return to your Board by end of October 2026 with final recommendations for your Board to reallocate any remaining funds. The United States Department of the Treasury (Treasury) requires that all recipients of ARPA-SLFRF, to fully expend their award by December 31, 2026. Any unspent ARPA-SLFRF after the expenditure deadline must be returned to Treasury. In 2023, Treasury published the Obligation Interim Final Rule (Obligation IFR) which amended the definition of "Obligations" and included additional flexibility with respect to the ARPA-SLFRF program, including the ability for recipients...
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