Frequently Asked Questions
How can American Rescue Plan Act (ARPA) funds be used?
- Replace lost public sector revenue;
- Respond to the far-reaching public health and negative economic impacts of the pandemic;
- Provide premium pay for essential workers;
- Invest in water, sewer, and broadband infrastructure;
- Provide emergency relief from natural disasters or their negative economic impacts;
- Support surface transportation and Title I projects; and
- Administrative costs associated with the implementation of ARPA projects.
- More information
What types of projects are included in “respond to the far-reaching public health and negative economic impacts of the pandemic?”
This eligible use category includes the following subcategories:
- Assistance to Households,
- Assistance to Small Businesses,
- Assistance to Nonprofits,
- Aid to Impacted Industries, and
- Public Sector Capacity
Is there a timeframe for when the funds need to be spent?
Yes. ARPA funds must be “obligated” by December 31, 2024 and spent by December 31, 2026.
Is the city on track to meet those deadlines?
Yes. As of February 2024 the city has already spent or obligated 76 percent of the funds. All remaining funds are on track to be obligated by December 31, 2024 and spent by December 31, 2026.
How much funding did New Orleans receive through the ARPA?
New Orleans received $387,523,048 from the U.S. Treasury to make investments in our City’s future. $187.3 million was used to replace revenue lost during the pandemic and stabilize the City's annual operating budget. $194.4 million has been appropriated to fund priority projects that will allow the City of New Orleans to recover equitably and ensure a safe, healthy, and prosperous future for its residents. An additional 5.8 million has been set aside for administrative costs associated with the implementation of ARPA projects.
Can funds be used towards general infrastructure projects, such as roads and bridges?
No, general infrastructure projects are typically not permitted outside of water, sewer and broadband investments unless the project can specifically be tied back to a specific public health need or negative economic impact.
What steps does the city take in order to commit funding?
Before the city commits funding to a project it must first:
- Develop a project scope;
- Evaluate the project for compliance with ARPA rules and eligibility;
- Draft and release a competitive procurement or sourcing event;
- Evaluate responses to the procurement and select recipients;
- Draft and execute a subrecipient agreement or contract.
What other federal regulations govern the City’s use of the ARPA funds?
There are several federal regulations that govern the city’s use of funds beyond Treasury’s Final Rule regarding the eligibility of spending. Most importantly the city is subject the requirements set forth in the Uniform Guidance, which is a framework for federal grants management that sets standards for managing federal funds to reduce waste, fraud, and abuse.
What is a subrecipient?
New Orleans is the direct recipient of a federal grant (ARPA). When it awards a portion of those funds to third parties to carry out a portion of that federal grant the third party becomes a subrecipient with obligations to abide by federal rules and regulations.
How can I apply for Rescue Plan funds for myself or my organization/business?
Any current ARPA funding opportunities are available here. If you are a vendor who would like to bid on an RFP, register with the City here. You can also follow the City’s social media pages on Facebook and X to receive the latest news.