Update (May 16, 2022): The U.S. Department of the Treasury has updated the 2021 FAQ and provided additional information on how American Rescue Plan resources can be used for outdoor recreation. Please see the updated FAQ, especially question 2.22 for additional information on allowable expenses.
As you likely know, President Biden signed the American Rescue Plan (ARP) into law on March 11 of this year. NRPA provided initial guidance on ARP in a previous blog post, and as promised, we wanted to provide you an update on new guidance from the Department of the Treasury. The new guidance details allowable uses for the “Coronavirus State and Local Fiscal Recovery Funds” — the $350 billion in funding for cities, counties and states to help blunt the economic impact of the pandemic and assist those most impacted by the virus. Information on how much funding your communities will receive is available here. It is worth noting that cities of all sizes will be receiving funds. The fund provides $45.6 billion for larger cities and $19.5 billion for cities with under 50,000 residents. No matter the size of your community, you will receive ARP funding.
The Department of the Treasury recently published an interim final rule that provides some much-anticipated information on how ARP funds can be used. NRPA’s public policy and advocacy team pushed to ensure that parks and outdoor spaces were recognized in the ARP, and we were pleased they were included in the interim final rule.
The Department of the Treasury also published an FAQ document that clarifies the rule. While I will lay out the provisions of the FAQ, please visit the document and see question 2.22 for more detailed information. The FAQ states that “Coronavirus State and Local Fiscal Recovery Funds” can be used for the following purposes for outdoor space/parks:
- To improve spaces in areas that have been disproportionately impacted by the pandemic. This provision refers to projects in a “Qualified Census Tract” and can include improving park space that will benefit the health and wellness of these communities.
- Maintenance and upkeep issues because of the increased use parks saw during the pandemic. Addressing these issues are allowable expenses under the ARP.
Now that we know what outlays will be allowed, you should be sure that your city manager, mayor, city council and other municipal leadership are aware of this new guidance from the Department of the Treasury. If you haven’t already made city leadership aware of the issues facing your department — such as maintenance issues due to the increased usage and your plans for new projects in underserved communities — now is a great time to do that outreach and education.
Ultimately, your city leadership determines how this money is spent, so you should continue to make the case to these decision-makers. It’s also important to make the case to members of your community so that various community voices are also advocating for these funds to be used to improve or enhance your local park and recreation facilities. You can learn more about how to do this by registering and viewing a recorded webinar that NRPA hosted on July 8, 2021.
Kyle Simpson is NRPA’s director of government affairs.