American Rescue Plan Act Funding (ARPA)

City of Missoula direct ARPA allocation: $14,192,996

The City of Missoula received a direct allocation of over $14 million in federal American Rescue Plan Act funds to help fight the pandemic, maintain vital services, and invest in long-term growth.

Treasury’s guidelines, and City priorities within those guidelines, have shaped our use of ARPA funding. The City of Missoula allocated our ARPA funding in each annual budget process from Fiscal Year 2022 through 2026. Find more information about the City's past budgets here, and tune into City Council meetings, and sign up for alerts.

FAQs

What is ARPA?

ARPA is an acronym for the American Rescue Plan Act, which provides funding to address the pandemic. The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, a part of the American Rescue Plan, delivers $350 billion to state, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency.

Why did the City of Missoula get direct funding?

As a “metro city” with a population over 50,000, the City of Missoula received a direct allocation from the U.S. Treasury. Great Falls and Billings were the other two cities in Montana who received a direct allocation (other Montana cities receive their ARPA funding through the State). We received half of our total direct allocation in May 2021, and the other half in May 2022.

What are eligible uses of ARPA funding?

The federal government intended ARPA funding to help:

respond to the Public Health and economic impacts of COVID-19
support premium pay for eligible employees
replace lost public sector revenue
improve water, sewer and broadband infrastructure

For more info on guidelines, visit Treasury’s SLFRF website.

How does revenue loss impact ARPA?

Local governments that lost revenue (lost taxes, utility payments, etc.) during the COVID-19 pandemic can use ARPA funds, up to the amount of revenue lost, for "government services." This category is extremely discretionary and allows the funds to be used for any service traditionally provided by a government. Treasury’s Final Rule allowed local governments to claim a standard allowance of $10 million in lost revenue, and the City of Missoula did take this standard allowance,

The City of Missoula received a separate “minimum allocation” specifically for water and sewer infrastructure projects. This federal funding flows through the State and is administered by the Montana Department of Natural Resources and Conservation (MT DNRC). Our Public Works team has been tasked with submitting applications to MT DNRC for review and approval in order to access our minimum allocation funding. Public Works has also been successful in securing over $6 million in additional ARPA funding from MT DNRC competitive Infrastructure grants.

Housing and Urban Development (HUD) Programs $1,323,209

In 2021, we received an additional one-time $1.3 million direct allocation of HOME ARP funds. Community priorities for these funds were identified through community outreach and engagement efforts, and documented in our HOME ARP allocation plan. Our 2025 funding recommendations include using HOME ARP to fund eligible supportive services at Watershed Navigation Center and the Human Resource Council. These and other HUD funding recommendations for July 1, 2025-June 30, 2026 are included in our Annual Action plan on our Engage page for HUD programs.

American Rescue Plan Act Funding (ARPA)

City of Missoula direct ARPA allocation: $14,192,996

FAQs

ARPA in the City Budget

$6.6 million

$3 million

$1.6 million

$1.4 million

$1 million

Infrastructure and Public Works $17,048,234

Housing and Urban Development (HUD) Programs $1,323,209

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