How long are ARPA funds good for?

Recipients of the allocated funds are bound by a specific timeline to ensure compliance with the guidelines set forth. By December 31, 2024, they are mandated to formally obligate the funds, signifying their commitment to using the resources for the intended purposes.

The obligation process serves as a critical step in ensuring transparency and accountability in the disbursement of funds. It marks the beginning of the actualization of the project or endeavor for which the funds were awarded.

Following the obligation deadline, recipients have until December 31, 2026, to fully expend the allocated funds. This timeframe allows for adequate planning, execution, and monitoring of the activities to ensure that the funds are utilized efficiently and effectively.

The imposition of these deadlines is crucial to prevent the mismanagement or prolonged holding of funds that could hinder the progress of other vital projects or initiatives. It also encourages recipients to prioritize their expenditures and stay focused on achieving their goals.

During this period, recipients are expected to maintain meticulous records of their financial transactions, ensuring that all expenditures are aligned with the project's objectives and objectives. This includes keeping track of expenses related to labor, materials, and other relevant costs.