Gov. Andy Beshear recently announced more than $157 million in funding for more than 360 non-entitlement cities in Kentucky from the American Rescue Plan Act (ARPA). Non-Entitlement Units of local government are local governments typically serving a population under 50,000.
The City of McKee qualifies as a non-entitlement unit of government and was allocated a total of $201,729.06.
Each allocation was based on population, per the U.S. Treasury. Eligible local governments will receive half of their total allocation now, with the second half of funding coming between spring and summer of next year.
The first portion of the funding ($100,864.53) will arrive in McKee as soon as this week to offset expenses related to COVID-19, including the costs of personal protective equipment, vaccination clinics, loss of revenue, payroll and more.
As part of the American Rescue Plan Act (ARPA) Kentucky cities are set to receive a potential $931 million over the next two years through the State and Local Fiscal Relief Recovery Fund to cover lost revenues and pandemic-related expenditures. Over $607 million in funds are set to be dispersed to the Kentucky Community Development Block Grant (CDBG) entitlement cities (Ashland, Bowling Green, Covington, Elizabethtown, Henderson, Hopkinsville, Lexington, Louisville, and Owensboro), while non-entitlement cities will receive roughly $324 million, to be dispersed through Department for Local Government (DLG).
DLG had until July 24 to begin distributions to non-entitlement cities. These cities will receive the first half of their allocation now, and the second half will be distributed in approximately 12 months. Unlike Coronavirus Aid, Relief and Economic Security (CARES) Act funding, “This is not a race to get the money or spend the money.”
Municipalities have until December 31, 2024, to make an expenditure or obligate their ARPA funds. All funds must be spent by December 31, 2026.
“Local governments have been important partners in our battle against COVID-19, and we know they have taken on great hardship and expenses to protect our people,” said Gov. Beshear. “I’m relieved our eligible city governments will receive these funds, because if we are to build a better Kentucky, we must ensure our communities are supported and positioned for growth.”
The Department for Local Government (DLG) was tasked with distributing these funds. Non-entitlement cities, or cities with populations under 50,000 that did not file for a different distinction with the U.S. Department of Housing and Urban Development, were required to submit budget certification forms to DLG. Payments have been processed through Kentucky’s accounting system and are expected to be sent to cities very soon.