More than $42 million in payments to 245 Maine municipalities have already been issued
The Mills Administration is encouraging local governments across Maine to apply for $119.2 million in Federal funding from the American Rescue Plan Act of 2021 (ARPA), which passed the U.S. Senate by one vote. The ARPA Local Fiscal Recovery Program is a State pathway to infuse Federal funds into Maine towns and cities to support a variety of their economic recovery priorities, such as investing in water, sewer, and broadband infrastructure or addressing the public health impacts of COVID-19, including replacing lost public sector revenue, providing financial resources to affected small businesses, or providing premium pay to public health and safety employees performing essential work during the pandemic, like 911 operators or EMS staff.
Since the program opened in Maine on August 25, payments have been issued to 245 municipalities, representing $42.8 million in Federal monies flowing to towns and cities out of the $59.6 million available for immediate distribution. The application process has been completed by an additional 48 municipalities, and those payments are scheduled to be issued early next week, while an additional 152 Maine municipalities are engaged in the process of requesting this Federal funding.
“This unprecedented investment through the American Rescue Plan will help towns and cities across Maine rebuild infrastructure, provide critical services, strengthen their economies, and make a real difference in the lives of their citizens,” said Governor Janet Mills. “I strongly encourage municipalities to apply for these critical funds.”
“When the Senate passed the American Rescue Plan in March, we delivered much-needed resources to local governments across our state that saw reduced revenues or incurred unexpected costs due to the unprecedented strain from the pandemic. Now, it’s time for local governments to collect these funds,” said U.S. Senator Angus King. “The additional federal support will provide Maine cities and towns the assistance they need to keep Maine people healthy, restore local economies, strengthen our state’s infrastructure, and help families in need. I’m grateful for the Mills Administration’s commitment to distribute this important aid, and urge Maine municipalities to apply before October 24th.”
“The American Rescue Plan is one of the most important pieces of legislation Congress will ever pass. I proudly voted for this bill because the economic damage caused by COVID-19 would last well beyond the pandemic without federal support for our cities and towns. I encourage Maine municipalities to apply for this relief as soon as possible,” said Congresswoman Chellie Pingree.
“Local officials should consider forming local consortiums to combine funds with other towns, or could explore an investment in projects in their area which have an overlap with existing statewide initiatives such as building out childcare and/or broadband infrastructure or supporting small businesses through existing or forthcoming workforce development initiatives. This approach may be especially relevant for those towns that the Federal government has slated for lower funding allocations,” said Kirsten Figueroa, Commissioner for the Department of Administrative and Financial Services. “The Mills Administration is committed to getting these crucial Federal funds into Maine communities as quickly as possible, and is available as a partner or resource in putting these funds to use immediately on behalf of local residents.”
“Municipalities are not required to specify how the funds will be used in order to receive them, and we are strongly urging all Maine towns to access their share. NEUs still have more than two weeks to apply for this unprecedented local of funding to local communities across the State, and Maine Municipal Association continues to strongly urge municipal officials across the state to apply by October 24, 2021 via the State’s simple online portal,” said Catherine Conlow, Executive Director of Maine Municipal Association. “Even for areas expected to receive smaller payments, municipal officials from across the State have been exploring opportunities for synergies. Regardless of their use – whether for projects that increase the affordable housing stock, address the impacts of climate change, improve infrastructure, or expand access to broadband – investments that will benefit the residents of Maine for decades.”
“Because the U. S. Treasury’s guidelines guarantee municipalities only 60 days to apply for the revenue, Maine Municipal Association strongly urges communities to start the process sooner rather than later,” said James Gardner, Jr., President of Maine Municipal Association and Easton Town Manager. “Our municipal finance directors, town clerks, town managers, selectmen, and other designees have found the process both straightforward and manageable, and the resources available for those who need a bit more handholding have been impeccable. There really is no excuse not to apply for these funds on behalf of your community.”
States across the nation must apply for these Local Fiscal Recovery funds and serve as the pass-through entity for disbursement to local governments. The Mills Administration applied for and received the first tranche of funding, $59.6 million, with a second tranche of equal value expected in approximately one year and to be distributed at that time.
All Maine towns and cities, along with many other tribal and other local government entities, are eligible for federal payments through ARRA, with a total of 477 Maine towns and cities eligible for funding via this pass-through from the State; the remainder of payments funnel directly from the U.S. Treasury to the government entity.
Per U.S. Treasury’s guidelines, municipalities are guaranteed 60 days to apply for these federal funds, which, in Maine, will elapse on October 24, 2021. Municipalities may apply via the online portal – and for support or with questions may contact: (888) 804-2544 or Maine.ARPAsupport@hornellp.com.
The Local Fiscal Recovery Program is part of a more than $4.5 billion Federal investment in Maine from ARPA, which also includes stimulus payments to Maine families, recovery efforts like bolstering public health including COVID-19 testing and vaccinations, broadband infrastructure, and direct payments to Maine’s county governments and so-called “entitlement” cities. The remaining approximately $1 billion in ARPA funding to Maine will be used to deploy the Maine Jobs & Recovery Plan, the Mills Administration’s historic investment into strategic priorities such as childcare, workforce housing, clean drinking water, workforce development, energy efficiency, and heritage industries, among other priorities identified to sustain and grow Maine’s economy.
View a listing of Maine communities to which payments have been issued (PDF).