ARPA SLFRF

American Rescue Plan Act State and Local Fiscal Recovery Funds

Part of the American Rescue Plan Act (ARPA) the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) delivers critical funding to state, territorial, local and Tribal governments across the nation to support the ongoing response and recovery efforts from the COVID-19 public health emergency. Municipalities and governments across the nation have been utilizing SLFRF funding to address the unique needs of their local communities to create a resilient national economy and encourage thriving local livelihoods.

Reporting Best Practices

Between the ARPA SLFRF reporting periods, recipients of SLFRF funding should engage in best practices to prepare for continued reporting, including continued document retention, ensuring portal access contact information remains up-to-date, and maintaining other strong internal controls to ensure smooth future reporting and closeout processes.

General Reminders:
- All ARPA SLFRF documents and records must be kept on file for 5 years after all funds have been expended or returned to Treasury
- All ARPA SLFRF allocations must be expended by December 31, 2026
- The final ARPA SLFRF report will be due on April 30, 2027

Compliance Toolkit

Beginning in summer 2025, the U.S. Department of the Treasury initiated outreach to select municipalities that have fully obligated and expended their ARPA State and Local Fiscal Recovery Funds (SLFRF) to participate in the early closeout process. To assist municipalities in preparing for this phase, the MTAP team has developed the following resources to support your jurisdiction’s closeout readiness.

ARPA SLFRF Closeout Quick Guide	SAM.gov Registration How‑To Guide	SLFRF Closeout & Post Closeout Responsibilities for NEUs
This guide offers municipalities insight into the closeout process, including initiating and reporting closeout, instructions for updates and reporting, categorical reporting requirements, post-closeout SLFRF requirements and more. It is designed to help municipalities understand the cycle of the closeout and reporting process from beginning to end, giving them the knowledge necessary to report with confidence.	Understanding the role of SAM.gov in the reporting process and maintaining account access is essential for avoiding delays and compliance issues. Being registered in SAM.gov is a requirement of receiving any federal funds, and registration should be renewed annually. This guide walks municipalities through the registration steps and offers practical tips, insights, and best practices for managing their account.	Even after closeout is completed, ARPA SLFRF recipients must maintain documentation standard practices and compliance with federal requirements. Failure to meet post-closeout responsibilities may impact eligibility for future federal funding. This guide provides insight into best practices for financial oversight and documentation, post-closeout use of SLFRF funds, and ongoing compliance requirements.

Audit-Ready Practices

As ARPA State and Local Fiscal Recovery Funds (SLFRF) continue to face heightened federal scrutiny, audit‑readiness has become a critical compliance priority for all recipients. Proactive preparation is essential to avoid potential findings, repayment risks, and operational disruption if selected for audit. Below are resources to guide your community in preparing for audit-ready compliance before and after SLFRF closeout.

SLFRF Revenue Loss: Compliance and Audit Readiness	Internal Controls General Guidance	Suspension and Debarment Quick Guide
The Revenue Loss Category (Expenditure Category 6) allows recipients to use funds to provide a broad range of government services. As described in the Compliance and Reporting Guidance, recipients using SLFRF funds under Revenue Loss must report two sets of information, including reporting projects under Expenditure Category 6. This resource provides audit-ready practices for expenses listed under this category to ensure municipalities are prepared for reporting and closeout.	Internal controls are processes designed and implemented to provide assurance regarding the effectiveness and efficiency of operations; reliability of reporting for internal and external use; and compliance with applicable laws and regulations. Maintaining a strong system of internal controls is a vital part of ensuring compliance, accountability, and proper management of funds. This guide is designed to help municipalities meet Treasury requirements to establish and maintain effective internal controls.	Suspension and debarment are safeguards that protect the government from fraud, waste and abuse. This guide provides insight into the process of suspension and debarment, defines each procedure, and provides next steps in the event your municipality is subject to either process.

SLFRF Obligation Reporting Guidance

The obligation deadline for all ARPA SLFRF allocations was December 31st, 2024. While no separate reporting was required to document these obligations outside of the April 2025 reporting period for annual reporters, all documentation regarding obligations must be dated on or before December 31st, 2024, and must be kept for at least 5 years after award closeout.

Updated Treasury User Guide for Reporting

The Treasury released an updated Compliance and Reporting Guidance handbook in October 2025, detailing addendums to the previous guide, published April 2025. In January, Treasury released the January 2026 Project & Expenditure Report User Guide, which provided updates on changes to the previous reporting cycle.

ARPA SLFRF-Specific Resources

These resources were created by MTAP specifically for the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) Program. The guidance they contain specifically relates to the SLFRF program, and does not apply to other Federal Awards.

Compliance Requirements Under the Revenue Loss Provision

This guide is designed to provide a high-level overview of Uniform Guidance requirements for expenditures made using SLFRF funds under the Revenue Loss Provision, sometimes referred to as Revenue Replacement or the Standard Allowance. Recipients are required to follow narrower sections of the Uniform Guidance under revenue loss relative to other expenditure categories under SLFRF and other federal awards.

SLFRF Compliance Supplement

Recipients of federal funds who expend over $750,000 in federal award funding in a single fiscal year are generally responsible for filing a Single Audit, but some municipalities who expended over $750,000 of federal award funding in a single fiscal year due to SLFRF funds may be eligible to submit the more streamlined Alternative Compliance Examination Engagement (ACEE) instead. This document discusses eligibility for the ACEE and the requirements of the ACEE as well as the sections of a Single Audit relating to SLFRF.

Disclaimer: Content available on this page is based on current U.S. Treasury guidance, which can be subject to change. Guidance provided by non-Treasury resources should be used as high-level overviews for informational purposes only and not as direct advice. As a recipient of Federal funds, each unit of government is responsible for the administration and compliance of fiscal recovery funds and federal funding.