In March 2021, Congress passed the American Rescue Plan Act (ARPA). As a result, the United States Treasury allocated more than $350 billion dollars to state, regional, municipal, and Tribal governments. The ARPA infused local governments with one of the largest injections of federal cash in U.S. history.
The federal government is distributing funds through brand-new grant opportunities at the federal level, and they have also tasked local governments with creating and funding programs that addressed the fallout of COVID-19 and the public health response, which included:
- Services and programs to mitigate the spread of COVID-19
- Mental healthcare and other behavioral health services
- Economic impacts including
- Unemployment
- Hard-hit industries like hospitality and tourism
- Revenue drops in small businesses
- Infrastructure investment like water and broadband
- Pay boosts for low-income essential workers
Many states and counties used this funding to shore-up or expand existing programs, like rental assistance and local health systems. However, many counties and cities also requested proposals from local nonprofits that were either impacted directly by COVID or working with a population affected by COVID. Clearly, this is a large and broad group of people.
This means that many nonprofits will be eligible to apply for funding under the ARPA.
Where can nonprofits apply for ARPA grants?
Local ARPA grants
Your first stop is to look at your county or city’s website. Many localities have established Emergency Response Funds to disburse ARP grants to nonprofits. As of October 2021, few states have exhausted all of their ARPA funding. This means there is still time to look and apply for a grant through your county or city.
Federal ARPA grants
Federal agencies also have authority to distribute ARPA funds. We’ve applied for ARPA funds through both the Economic Development Administration and the National Endowment for the Arts. To find federal grants, go to the website of the federal agency that aligns with your work and view their grant programs. I recommend going directly to their site rather than starting with a search on grants.gov because you’ll find more detail and be able to search by ARPA-related grants.
For example, the USDA has ARP funding for the following:
- Delivering nutrition assistance to millions
- Supporting farmers and strengthening the food supply chain
- Ensuring equity for farmers of color amid the pandemic
- Strengthening infrastructure, housing and healthcare in rural America
The way these funds are distributed vary. For example, the USDA just announced a new grant program on October 6, 2021 called the Pandemic Response and Safety Grant Program, which “provides grants to specialty crop producers and processors, other select producers, meat and other processors, distributors, and farmers markets to respond to coronavirus, including for measures to protect workers against novel coronavirus 2019 (COVID–19),” with a deadline of November 22, 2021.
As new ARPA-funded grant opportunities are still being posted, it’s essential that you become familiar with the federal agency or agencies that would support that type of work your nonprofit does and check their website and opportunities for that agency on grants.gov every week. Yes, check in weekly!
Strategies for Success
Know your needs
COVID turned things upside down for many nonprofits. Identify the three largest issues your organization is currently facing and seek grant funding to support your response to those issues. Consider the types of services that your beneficiaries need the most right now.
Be prepared to talk about how your organization was financially impacted by the pandemic in detail. You should already have some kind of accounting software. Use that to produce Profit & Loss statements for 2019, 2020, and 2021. Do the same with other financial reports, like cash balance statements. Be able to look at changes for different line items and explain increases or decreases. For example, if you saw a decrease in individual donations due to the financial hardship of your regular donors, note that. If you had to pivot to virtual delivery and shut down your physical location, note that you no longer had to pay rent and utilities. If you had to purchase new technology and other equipment in order to run those programs remotely, note those expenses as pandemic related. Honestly, this list and go on and on, depending upon what you do. Just be detailed and honest here.
Also have your community’s needs in mind when applying. Have stats on-hand detailing how those you serve were impacted by the pandemic, identify key issues contributing to those impacts, and explain how your work addresses those issues, if it does.
Start small
Many local ARPA grants are designed as rapid response grants. This is great because it means a more streamlined application process. The downside is that grants are usually capped at amounts below $10,000. This is another reason to be clear about your needs so that you can use the funds to make the most impact.
Stay in the loop
Many states are receiving their APRA funding in two tranches. The second half is expected to drop in 2022. Keep informed of new grant opportunities by connecting with your local government and federal government agencies related to your work. You can sign up for their newsletter, follow them on social media, or send an email out to your local representative to ask about ARPA funds.
Need help with your ARPA grant application?
We’re here for you. We help visionaries and changemakers get the funding they deserve by helping them evaluate grant opportunities, draft, revise, and submit grant applications.
ARPA grant writing services start at $2,000; payment plans are available. Large, complex federal grant applications ($100k+) range between $5,000-$10,000 to write. If you’re interested in working with us to write an ARPA grant, you can request a 30-minute discovery session with us by completing this questionnaire.
