The federal American Rescue Plan Act, enacted in March 2021, provided one-time, flexible funds to counties, cities, and towns.

The funds, called the Coronavirus Local Fiscal Recovery Funds (CLFRF), can be used for:

• replacing public revenue lost due to the COVID-19 pandemic;
• responding to the adverse public health and economic impacts of the pandemic;
• providing premium pay, including retroactive pay, for essential workers;
• investing in necessary water, sewer, and broadband infrastructure;
• supporting certain types of transportation projects and community development initiatives; and
• providing relief for natural disasters.

Cities and towns in New Hampshire received a combined total of $198.2 million in 2021 and 2022. As of the end of March 2024, New Hampshire cities and towns reported spending $118.8 million (60 percent), while another $48.3 million (24 percent) were reported as obligated but not yet spent, for a total of $167.2 million (84 percent) of funds that were likely not at risk of recoupment. About $31.0 million (16 percent) of the funds required some action to obligate or spend those dollars in the final nine months before the deadline to avoid recoupment by the federal government.

These data are not complete, as the published federal data did not include information for 38 cities and towns that were eligible to receive these funds. Communities may also be reporting funds as obligated in error; obligating the funds “means an order placed for property and services and entering into contracts, subawards, and similar transactions that require payment.” However, some funds appear to have potentially been budgeted for a purpose without having been fully obligated yet.

Based on the available data, 113 cities and towns reported obligating or spending at least 95 percent of their CLFRF allocation. However, 13 reported obligating or spending less than 25 percent of their CLFRF as of the end of March 2024, and five towns (Alexandria, Lancaster, Lincoln, Orford, and Walpole) had not obligated any of their funds, according to the published federal data.

To learn more, read NHFPI’s July 22, 2024 blog Local Governments Nearing Deadline to Obligate Federal Funds with Millions of Dollars at Risk. More information about specific projects by community is available for download from the U.S. Department of the Treasury.