New ARP Guidance for “Non-Entitlement Units” Released

Posted on May 25, 2021 by Dene Westbrook

Monday evening, the US Treasury released guidance specifically related to the majority of Michigan communities that will receive American Rescue Plan Act funding on a per capita basis.

For Michigan, these Non-Entitlement Units (NEUs), are scheduled to receive more than $644 million in federal aid that will be distributed through the State of Michigan on a per capita basis.  While US Treasury did not attribute specific allocations to each of Michigan’s NEUs, they did provide a List of Local Governments eligible for this federal funding support.  This list also includes the 2019 census data that the State of Michigan will use to allocate this funding to our eligible NEUs.  The NEU definitional and data methodology is also outlined by US Treasury here.

Following significant lobbying by MML and our partners at the National League of Cities, this updated list of local governments from US Treasury recognizes all of Michigan’s villages as distinct NEUs, eligible for their own per capita allocation from the state.  This is an important acknowledgement for Michigan communities becasue of our unique system of local government compared with our national peers.  We are now working with the Michigan Department of Treasury and the State Budget Office to determine how the state intends to implement and distribute this funding based upon the specific guidance that US Treasury provided to the states.  According to language in the American Rescue Plan, the state is required to forward these dollars within 30 days of receipt from the federal government, with only minor allowances for extensions.  A state appropriation bill must be passed to distribute this $644 million to all 1,724 eligible Non-Entitlement Units in Michigan.

The League will continue to update members on the legislature’s activities around this funding as well as forthcoming updated guidance from the US and Michigan Department of Treasury.

HEADS UP – We are also working with the Michigan Department of Treasury on a webinar for local government officials in early June.  Stay tuned for agenda information and registration details.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and [email protected].

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