Kentucky communities need help, and the $1.9 trillion American Rescue Plan Act (ARPA) offers a unique opportunity for local government to partner with nonprofits to invest in our people, our communities and our economy.
The American Rescue Plan Act (ARPA) provides over $3.77 billion for Kentucky. This includes $867.8 million in funding for Kentucky counties and $931 million for Kentucky cities. With billions to be distributed locally over the next four years, there is an unprecedented opportunity for cities and counties to make key investments in nonprofit programs and services necessary to help people recover from the pandemic.
However, nothing is automatic - your advocacy may be critical to ensuring city/county officials understand how partnering with nonprofits can help them meet community needs, especially the needs of those most impacted by the pandemic, and meet federal funding requirements. In fact, many officials may not be aware that partnering with nonprofits is an EXPECTED use of ARPA funds.
Who says cities and counties can partner with nonprofits to spend ARAP funds? Congress. As part of the ARPA economic stimulus package, which became effective on March 1, 2021, Congress declared that:
–H.R. 1319, The American Rescue Plan Act, Sec.602(c)(1)(A), page 223
- Responding to the impacts of COVID-19 pandemic, including assistance (grants) to nonprofits;
- Supporting public health responses, such as vaccination, medical care, testing, contract tracing, isolation and quarantine, capital investments such as physical plant improvements;
- Supporting recovery programs, such as mental health services, crisis intervention, substance use treatment, housing, etc.;
- Providing payroll and benefits for public health and public safety workers, including retroactive pay.
*The list of eligible uses is not exhaustive, so it is recommended that projects or programs specifically mention “recovery” in the stated goal or impact.
Kentucky Nonprofit Network is here to provide information, resources and support, when possible, for nonprofits seeking to convene and advocate for local ARPA funding of nonprofit partnerships. If you are not a KNN member, we invite you to join KNN's email list to receive updates regarding upcoming webinars and town hall meetings, opportunities to advocate, and other nonprofit news. Have specific questions? We will try to help - email us.
Tools to help your nonprofit access local ARPA funding:
ARPA Information & Resources
- ARPA Overview
- What is the American Rescue Plan Act (ARPA) – House Committee on the Budget
- Analysis of Key Provisions of ARPA Affecting Nonprofits – National Council of Nonprofits
- KY Open Letter to City & County Leaders Urging Partnershps with Nonprofits (includes link to National Council of Nonprofits' Report: Strengthening State and Local Economies in Partnership with Nonprofits) - KNN
- *NEW* Report (revised 4/22): Strengthening State and Local Economies in Partnership with Nonprofits - National Council of Nonprofits
- Kentucky Association of Counties - includes a link to county allocations
- Kentucky League of Cities - includes a link to county allocations
- Coronavirus State and Local Fiscal Recovery Funds – U.S. Treasury Guidance for ARPA
- ARPA Messaging
- Principles for Effective Use of ARPA Funds
- ARPA Webinar Recordings
- Examples Nonprofit and Local Government ARPA Partnereships from KY and Beyond