American Rescue Plan Funds (ARPA) for Non-entitlement Units (NEU) of Local Government (Portal now open)
The American Rescue Plan Act of 2021 (ARPA) appropriates $19.53 billion to States for distribution to tens of thousands of non-entitlement units of local government (NEUs). ARPA directs the U.S. Department of the Treasury (Treasury) to make payments to each State for distribution to NEUs within the State. Illinois' NEU allocation is $742 million. In Illinois, eligible NEUs include more than 1,250 cities, towns and villages that each serve a population under 50,000.
These funds provide a critical source of relief for local governments, including smaller governments which have not received direct financial assistance from the federal government since the onset of the COVID-19 pandemic.
To assist local governments as they claim their allotments, the State of Illinois has established
The NEU Portal.
Authorized representatives from each NEU can log into the portal, request their allotment and download all the required Treasury documentation. Allocations to communities are made on a per-capita basis in two payments. After completing the allocation request on the portal local governments will receive their allocation in two payments: the first will be made within 30 days of portal completion, the second to be made approximately one year later.
Funds can be used to cover revenue losses and the costs of responding to the COVID-19 public health emergency or to its negative economic impacts on households, small businesses, impacted industries, essential workers, and the communities hardest-hit by the crisis. These funds can also be used to invest in building, maintaining, or upgrading water, sewer, and broadband infrastructure.
Per Treasury guidance, NEUs that do not claim their allotments within 60 days after the State begins accepting and processing requests for funding from NEUs will lose their allotments, which will be distributed to other NEUs. Additional funds may be available and distributed to NEUs after the first allotment distribution is completed if NEUs do not claim all available funds by the deadline set by the State, which will be posted on the Department of Commerce and Economic Opportunity's website.
What is an Illinois NEU?
An NEU is a Non-entitlement unit of local government, as defined in
section 603(g)(5) of the Social Security Act, as added by section 9901 of the American Rescue Plan Act of 2021 and are local governments typically serving populations of less than 50,000.
Which local governments are eligible?
Cities, villages, and towns with populations of less than 50,000 are eligible for an ARPA NEU Allocation. See the
list of eligible municipalities and allotments. Illinois has determined that its
minor civil divisions (MCDs) are not eligible for allocations.