GFOA of the US & Canada

How to Tap Into the Stimulus Funds and Bond Programs

The American Recovery and Reinvestment Act (ARRA) provides funding to both state and local governments through a series of grants and loans distributed by various federal agencies, or in the case of local governments, sub-allocated by the states. Many of the funds will be distributed only for “shovel ready” projects and must be obligated within a specific time period. In addition, the ARRA sets forth some other broad requirements. First, no funds may be allocated for zoos, aquariums, golf courses, swimming pools, or casinos. Second, contractors and subcontractors working on projects funded by the ARRA must be paid the prevailing wage rate, as set forth in the Davis Bacon Act. Finally, the new law requires that a preference be given to American-made goods in construction and infrastructure projects financed by the Act.

Next Steps for Local Governments

Local governments should take the following steps to access stimulus funds:

• Immediately consider which grant programs to apply for by visiting www.grants.gov for information on how to find and apply for federal grants, including a resource page on “Applicant Frequently Asked Questions.”

• Visit the individual federal agency Web sites to access information regarding eligibility for specific grant distributions and to understand how to apply for the grant. Immediately begin a dialogue with designees in the appropriate federal agency. This list shows federal agency Web sites that include information on grants distributed by formula as well as through a competitive bid process.

• Information on specific allocations to local governments is currently available on the Web sites of the following departments.

• Begin a dialogue with the governor’s office to understand the governor’s priorities in allocating recovery dollars and to make known the needs and concerns of your particular jurisdiction. Many governors’ offices have created their own Web sites that discuss how they will be allocating recovery dollars. List of state recovery Web sites.
  

• Contact your state municipal league for assistance in how to work with the governor’s office and state legislature to make the needs of your government a priority. Several state municipal leagues also have information on their Web sites discussing how stimulus funds will be disbursed to local governments. List of state municipal leagues Web sites.
  

• Regularly review the GFOA Web site as well as the Web sites of other national associations representing the interests of state and local governments—such as the National League of Cities, the United States Conference of Mayors, and the National Conference of State Legislatures —to review new information regarding access to stimulus funds.

IRS Guidance on Tax Credit Bond Programs

IRS Web page with guidance on bond programs

Additional Resources:
Comprehensive Breakdown of Stimulus Funding (provided by the House of Representatives)

GFOA ARRA Summary (including bond and funding programs)