Federal officials believe most communities have plans for most of the money received under the 2021 American Rescue Plan. But it's not always clear how they're spending it.
for any money that state or local officials categorized as a replacement for lost revenue.
Yet the federal aid helped the city construct sidewalks, replace computer software, upgrade the police radio system and make fire and safety improvements to a civic center, among other things, said Lakewood Chief Financial Officer Holly Bjorklund. When it comes to reporting revenue replacement for money that’s used for government services, the Treasury’s guidance isn’t very clear, said Katie Buckley, federal funding assistance program director for the Vermont League of Cities and Towns. But Buckley said she had advised local officials to report all government services as one project, and then list what those services included.
There are no particular repercussions for reporting things incorrectly. There also are no immediate penalties for not reporting at all — though the Treasury’s guidance says “a record of late reporting” could lead to the “development of a corrective action plan, or other consequences.”
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