Remaining American Rescue Plan Act (ARPA) Funds

Remaining ARPA funds refers to the unspent portion of the $350 billion State and Local Fiscal Recovery Funds (SLFRF) program, created under the American Rescue Plan Act of March 2021 and distributed directly to every state, county, city, tribal government, and U.S. territory to address the economic and public health impacts of the COVID-19 pandemic. The program has already passed one hard deadline and is now approaching its final one. States and local governments were required to obligate all SLFRF funds by December 31, 2024; large ("Tier 1") governments reported meeting that deadline at 100%. The remaining and far more urgent SLFRF deadline is the expenditure deadline: all obligated funds must be fully spent by December 31, 2026.

As of today's date, that ARPA funds deadline is roughly four months away. As of the most recent nationally reported data (September 2024), approximately 30% of allocated SLFRF funds nationally remained unspent, though large jurisdictions have reported faster progress. Reporting obligations continue into 2027 even after the spending deadline passes, and Treasury will conduct a multi-year audit and reconciliation process once the window closes. The National League of Cities' ARPA resource hub and UNC's Coates' Canons closeout guide both offer detailed compliance and closeout guidance for the remaining window.

This deadline matters well beyond pure compliance mechanics. Many state and local governments used ARPA/SLFRF dollars to seed public-health staffing, broadband expansion, and telehealth-adjacent infrastructure projects that are now facing a "fiscal cliff" as the funding source disappears—roughly 69% of city leaders expect a negative budget impact once ARPA funding ends. For any organization whose rural-health infrastructure conversation touches a state or local government partner, understanding that this specific funding source is closing is essential context for late-2026 and 2027 planning conversations.