ARPA Clawbacks
Dear Colleagues,
"Start to spend your money. There's an urgency because Congress is looking to clawback those resources that you've been sitting on for 2-3 years. Start to find a way & obligate those resources as quickly as you possibly can." HUD Secretary Marcia Fudge issued that call to Mayors at the USCM Annual Meeting in Reno in June. Accelerator was in the room and repeated her words across our networks to emphasize the urgency of allocating ARPA funds.
Now, Route Fifty, which specializes in state and local government news, is reporting that there are signs that “lawmakers in the House and Senate have been bashing projects paid for with American Rescue Plan Act dollars that they see as wasteful. It could be a sign of further scrutiny to come."
With the midterm election season heating up, there’s little doubt that criticism of ARPA (and IIJA) will be candidate talking points and further threats of ARPA clawbacks are sure to come. Cities and states should not dismiss this as pure rhetoric. We must move expeditiously to deploy these funds to accelerate a more inclusive economic recovery.
So what should cities do to protect these critical resources? We recommend the steps laid out through our Stimulus Command Center model, which cities across the US are using as decision making clearinghouses for ARPA and other federal funds:
Organize for success - lead the cross-department and cross-sector regional executive level teams that set a vision, strategy, and process for deploying these funds with a robust public process;
Prioritize forward looking investments over one-time spending – investments that create a more equitable, prosperous future;
Build support for your initiatives by communicating the process and purpose of the funding choices and keep telling stories of how these funds are making a real difference in your community. An example of a public facing strategic spending document is the Dayton Rescue Plan. In addition, show your work and exercise transparency by making sure public facing trackers such as the NLC ARPA tracker are updated;
Invest in grant writing capacity and compliance;
Move expeditiously to allocate funds; and
Work with your regional partners to communicate the story of economic recovery and set the vision for where the city and region are going with the expenditure of these funds.
When funds are allocated transparently, strategically and in a way that creates long term impact, they are not only more likely to survive challenges, they are likely to build champions at all levels of government and in the community. Ultimately, we call on cities to spend in ways that other cities are eager to replicate, and we are eager to amplify your success stories!
As always, we stand ready to help you help your communities most in need. Please do not hesitate to reach out at any time.
Thank you for all that you do.
Mary Ellen Wiederwohl
President and CEO | Accelerator for America