News Flash

The National League of Cities, the League’s federal partner, shared information released by the U.S. Department of the Treasury with  new guidance on how municipalities should prepare to close out their American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) awards. 

Per statute, recipients must continue reporting on their SLFRF projects through 2027, even after funds are fully spent. However, Treasury has now introduced an early closeout option. As a reminder, closeout is not the same as being administratively closed in the reporting portal. Administrative closure occurs when a municipality misses a reporting deadline and Treasury staff automatically locks the portal for that period. Past reporting portals cannot be reopened, but all reports are cumulative and continue forward. 

To ensure your municipality is ready for closeout, review Treasury’s Award Closeout Preparation Checklist  and confirm the following:  

• Funds are fully obligated and spent. Verify that all SLFRF funds are properly accounted for in the SLFRF Reporting Portal.
  • The 2025 report can be downloaded to check that all your funds were properly obligated and spent in the “Compliance Reports” section after logging in via login.gov or id.me.
• Active SAM.gov Registration. A municipality cannot file its final closeout report without an active SAM.gov account.
  • SAM.gov accounts must be renewed annually once activated.  
  • To renew the registration, refer to GSA’s renewal resource for step-by-step instructions. 
  • SAM.gov registration is always free. Be cautious of third-party sites or renewal emails not ending in @sam.gov.
• Updated Points of Contact. Confirm SLFRF Reporting Portal contacts are current by logging into: 
  • Portal.treasury.gov/compliance (if using Login.gov).
  • Portal.treasury.gov/cares (if using ID.me). 
  • Please check this as soon as possible and ensure that staffing changes, can be updated in the portal ASAP.
  • Treasury has step-by-step instructions and a video that demonstrate how to change roles. 
• Organized financial documentation. Maintain accessible financial records that clearly demonstrate your SLFRF funds were properly obligated and spent. Remember that audits may occur up to five years after closeout.

Treasury will continue expanding early closeout opportunities. In the meantime, municipalities should prepare by confirming their compliance and administrative readiness. 

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.