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Posted on: March 15, 2021

American Rescue Plan (ARP) Funding Information

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On Thursday, March 11, the American Rescue Plan Act was signed into law, allocating $2.317 billion to Maryland's local governments including $589 million for Maryland municipalities.  

There are still a lot of unanswered questions, but MML, in partnership with the National League of Cities, and Maryland's Congressional Delegation, is working to get you the information you need. 

We've created an ARPA Resource page where we'll be posting information as it becomes available. But as always, you can contact us directly with any questions.   

Allowable uses of ARP State and Local Fiscal Recovery Funds

  • To respond to or mitigate the COVID-19 health emergency or its negative economic impacts, including assistance to households, small businesses, nonprofits, and aid for tourism, travel, and hospitality;
  • To provide essential workers with premium pay;
  • To cover revenue loss incurred as a result of the COVID-19 emergency; or
  • To make necessary investments in water, sewer, or broadband infrastructure

Prohibited uses of ARP State and Local Fiscal Recovery Funds

  • Funds may not be used to support any pension fund or offset a tax cut

ARP Local Fiscal Recovery Fund Distribution 

For metropolitan cities that are entitlement communities under CDBG, including Annapolis, Baltimore, Bowie, Cumberland, Frederick, Gaithersburg, Hagerstown, and Salisbury, the U.S. Treasury will issue two tranches of funds, with 50 percent of allocation available within 60 days and the second tranche available one year after the first tranche is paid. Funds are distributed using a modified CDBG formula based on population and concentration of poverty.  

Maryland’s remaining 149 municipalities will have  funds distributed on a population basis. The Treasury has 60 days to award funding for the State to distribute to "nonentitlement" communities as a pass-through. Upon receipt, the State must distribute funds within 30 days. All municipality funds are issued in two tranches, with 50 percent of allocation available within 60 days and the second tranche available one year after the first tranche is paid.

A complete list of potential funding distribution for each of Maryland’s municipalities can be found on our COVID Relief Funding Page.  


MML will continue to provide updates related to ARP funding distribution and usage requirements.  Updates will appear on our COVID Relief Funding Page as well as through standard MML communication vehicles like the eBulletin.

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