US EditionLocal governments might need Pa.’s help with ARPA funding ‘cliff’
- As federal stimulus dollars from the 2021 American Rescue Plan Act dry up, the Shapiro administration anticipates that some Pennsylvania municipalities may face financial distress and require state assistance.
- During the COVID-19 pandemic, state and local governments received $350 billion in unprecedented federal aid through the State and Local Fiscal Recovery Funds program, which many recipients used to fill revenue gaps.
- The Pennsylvania Department of Community and Economic Development has requested that the legislature approve a $10 million increase to the special state fund, known as Act 47, which aids local governments facing severe economic hardships, for the 2025-26 fiscal year.
- DCED Secretary Rick Siger stated on Feb. 18 that shoring up the Act 47 fund is intended as a proactive measure to prepare for any potential impact from the ARPA funding expiration, while William Glasgall of the Volcker Alliance believes the proposed $10 million increase won't go far, and David Sanko of the Pennsylvania State Association of Township Supervisors noted many local governments have been planning for the end of ARPA funding.
- With the December 31, 2026 deadline to spend the ARPA money approaching, Pennsylvania, which received $7.29 billion, allocated over half its share to counteract revenue loss, but State Senator Patty Kim believes more needs to be done to prevent communities from becoming financially distressed, and it remains unclear whether the proposed $10 million increase will pass the legislature as the state might have to make up for federal funding cuts.
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End of Federal Relief Money Will Push Some Pa. Municipalities Off a Financial Cliff, Shapiro Admin Fears
This story was produced by the State College regional bureau of Spotlight PA, an independent, nonpartisan newsroom dedicated to investigative and public-service journalism for Pennsylvania. Sign up for Talk of the Town, a weekly newsletter of local stories that dig deep, events and more from north-central PA, at spotlightpa.org/newsletters/talkofthetown. STATE COLLEGE — The Shapiro administration expects some Pennsylvania municipalities to becom…
·State College, United States
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