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Local Fiscal Recovery Fund Program

Information on the Local Fiscal Recovery Fund Program

About

Under the American Rescue Plan Act of 2021 (ARPA), the State will receive a total of $112 million in Local Fiscal Recovery Funds to distribute to New Hampshire non-metropolitan cities and towns (so-called Non-Entitlement Units or NEUs), this includes all NH municipalities except for Dover, Manchester, Nashua, Portsmouth and Rochester – these five cities receive separate FRF allocations directly from U.S. Treasury as metropolitan cities.

Use of Local Fiscal Recovery Funds

According to the U.S. Treasury, the Coronavirus State and Local Fiscal Recovery Funds provide eligible local governments with a substantial infusion of resources to meet pandemic response needs and rebuild a stronger, and more equitable economy as the country recovers.

In the Final Rule, Treasury gives NEUs the option to elect a "standard allowance" of up to $10 million to spend on government services under the “Revenue Replacement” category, aka expenditure category or E.C. 6.1.

NEU’s that received less than $10 million can spend their entire allocation of LFRF on “government services”. Treasury noted that, “government services” include most services provided by NEUs, and also include all activities eligible under other expenditure categories.

NEUs are strongly encouraged to align all projects under E.C. 6.1 – Provision of Government Services due to the broad eligibility allowed and streamlined reporting requirements.

NEUs that receive LFRF funding are considered prime recipients of Treasury and will report directly to Treasury regarding their use of the funds. For more information and guidance about allowable uses of Local Fiscal Recovery Funds and reporting requirements, please see U.S. Treasury’s LFRF website.

NEUs that strongly wish to categorize projects outside of the Revenue Replacement EC, please contact GOFERR for more information on how to administer and report on the award.

Distribution of Local Fiscal Recovery Funds

On June 1, New Hampshire received payment of $56,104,386.50 designated as the first tranche of LFRF funding. This is equal to half the total amount that has been allocated for NH local governments. The State will receive a second tranche in the same amount to distribute to local governments no sooner than 12 months after June 1, 2021.

Each NEU’s share of the funding is calculated as the amount that bears the same proportion to the amount of aggregate payment as the population of the NEU bears to the population of all NEUs in the State but may not exceed 75% of the most recent budget for the NEU as of January 27, 2020. The “most recent budget” is the “most recent annual total operating budget including its general fund and other funds.” Each NEUs allocated share of total funding and the amount that is payable in the first tranche may be accessed here.

The LFRF does not separately include funding for village districts or precincts. Such districts and precincts, however, are included in the population calculations for awards to localities specified by the federal government.

On June 10th, 2022, New Hampshire received the second tranche of LFRF funding in the amount of $56,104,386.50. This is equal to half the total amount that has been allocated to NEUs. NEUs must request funding to receive payment of their allocated share.

Note: if an NEU declined the first tranche, they are ineligible to receive their second tranche distribution.

Before You Apply

For NEUs Requesting Funding

  • Obtain or confirm your local government’s valid DUNS number
  • Gather your local government’s business information:
    • Entity Taxpayer Identification Number
    • NH Vendor Number (NH Vendor Application)
    • Authorized representative name, title, phone and email
    • Contact person name title, phone and email
  • Confirm your local government’s top-line budget total, which is defined as your local government’s total annual operating budget, including general fund and other funds, in effect as of January 27, 2020 (same as 2019 Operating Budget Appropriations Line on MS-636 or MS-737 as modified, if at all, by Authorized Approving Body)
  • Review Treasury Award Terms and Conditions Agreement
  • Review Assurances of Compliance with Title VI of the Civil Rights Act of 1964

Frequently Asked Questions

Webinars and Additional Resources

As a reminder, the resources above are specifically for NEUs that are funding their LFRF projects under Expenditure Category 6.1 – Provision of Government Services. If a project is funded under a different expenditure category, please contact GOFERR for information and resources about additional compliance and reporting requirements that apply to those project(s).