American Recovery Act
The American Recovery and Reinvest Act of 2009
The American Recovery and Reinvestment Act of 2009 (ARRA) is intended to:
- Preserve and create jobs to promote economic recovery
- Provide investments in technological advances in science and health
- Invest in transportation, environmental protection and other long term infrastructure improvements
- Stabilize state and local government budgets
President Obama's recovery plan represents the most ambitious effort to stimulate the economy in our nation's history. The State of Arkansas is currently projected to receive $2.9 billion in one-time additional federal revenues, as administered by the state, split over 27 months.
The law contains several mechanisms to ensure funds are granted and expensed rapidly in order to provide the most immediate impact possible for the economy. The Act's language states: "recipients shall give preference to activities that can be started and completed expeditiously," including the goal of committing 50% of the funds within 120 days. Overall, there are 2 types of grants, Formula and Competitive. Formula (entitlement) grants are to be made available within 30 days of passage of the Act, while Competitive (applicant) grants shall be awarded within 90 days. These grants contain "Use it or Lose it" clauses which will require recipients to enter into binding contracts within one year of enactment of the Act for 50% of the funds, and within two years for the remainder of the funds. In general, funds appropriated by the Act and obligated within the first 120 days of each year shall remain available for expenditure until September 30th of the following year. Agencies will be required to report detailed expense records for publication on the website, Recovery.gov.
State Recovery Website http://recovery.arkansas.gov/
Federal Recovery Website http://www.recovery.gov/