American Rescue Plan Act/ ARPA

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 ARPA provides over $3.77 billion for Kentucky, which 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.

Your advocacy is 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:

“State, Local, Tribal, and territorial governments may use their allocations of the $350 billion in Coronavirus State and Local Fiscal Recovery Funds to provide ‘assistance to households, small businesses, AND NONPROFITS, or to aid impacted industries.”
–H.R. 1319, The American Rescue Plan Act, Sec.602(c)(1)(A), page 223

What are the eligible uses for nonprofits?

  • Supporting public health responses, such as vaccination, medical care, testing, contract tracing, isolation and quarantine, and capital investments;
  • 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.

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’re 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.

Tools to help your nonprofit access local ARPA funding:

Communication template to contact local officials

Nonprofits and local government ARPA partners

Connecting with city/ county leaders to outline strategies

10 funding principles for government partnerships

KY open letters to share with local council officials

ARPA Overview

ARPA Overview

Information and Resources