Treasury lays out steps local governments need to take to prepare for ARPA grants

Based on an announcement from the U.S. Department of the Treasury, the National League of Cities today provided an update about actions local governments need to take in order to receive their grants from the American Rescue Plan Act.

On its website, the Treasury Department late on April 15 laid out the steps that metropolitan cities and non-entitlement units of local government need to take to receive their grants from the American Rescue Plan Act. It is recommended that these steps be taken as soon as possible to ensure cities and towns receive their funds in a timely fashion.

Metropolitan cities
Metropolitan cities should:
1. Ensure the entity has a valid DUNS number. A DUNS number is a unique nine-character number used to identify an organization and is issued by Dun & Bradstreet. The federal government uses the DUNS number to track how federal money is allocated.

A DUNS number is required prior to registering with the SAM database, which is outlined below. Registering for a DUNS number is free of charge.

To obtain a valid DUNS number, visit fedgov.dnb.com/webform or call 866-705-5711 to begin the registration process.

2. Ensure the entity has an active SAM registration. SAM is the official government-wide database to register with in order to do business with the U.S. government. All federal financial assistance recipients must register on SAM.gov and renew their SAM registration annually to maintain an active status to be eligible to receive federal financial assistance. There is no charge to register or maintain an entity’s SAM registration.

Entities that do not have an active SAM registration should visit SAM.gov to begin the entity registration or renewal process. Note that SAM registration can take up to three weeks; a delay in registering in SAM could impact timely payment of funds.

• Download an overview for SAM registration from the Treasury (PDF)

3. Gather the entity’s payment information, including:
• Entity Identification Number (EIN), name, and contact information
• Name and title of an authorized representative of the entity
• Financial institution information (e.g., routing and account number, financial institution name and contact information)

Non-entitlement communities
Eligible non-entitlement units of local government will receive a distribution of funds from their respective state government.

“Non-entitlement units of local government” are defined in 42 U.S.C. 5302(a)(5) that are not metropolitan cities. For these non-entitlement units of local government, the Treasury will allocate and pay funds to state governments, and the state will distribute funds to non-entitlement units of local government in proportion to population.

Non-entitlement units must have a valid DUNS number to meet reporting requirements under the program. Entities without a valid DUNS number should visit fedgov.dnb.com/webform or call 866-705-5711 to begin the registration process.

Further guidance
The Treasury Department stated that program guidance for the Coronavirus State and Local Fiscal Recovery Fund will be released in the coming weeks.