American Recovery & Reinvestment Act of 2009: Whether and Where States Are Accepting & Distributing Federal Stimulus Funds

  • Description

Nonprofits should be watching what your state governments are doing in terms of who receives and will be responsible for the stimulus funds flowing to your state from the federal government. In most states, the funds will flow to the Governor, but important differences exist in each state. The American Recovery and Reinvestment Act of 2009, PL 111-5 ("Act" or "ARRA") directs that Federal funds to states and local entities will flow into each state through the Governor, who must certify that: "(1) the State will request and use funds provided by this Act; and (2) the funds will be used to create jobs and promote economic growth." Act, p. 189 If the Governor refuses to accept the money, then the state legislature can accept the funds. Act, p. 190. News reports indicate that states are responding in different ways, meaning that nonprofits interested in applying for new grants and contracts need to know what is happening in their states, especially given the extremely tight time application deadlines. To help nonprofits, the National Council of Nonprofits prepared this evolving chart that may serve as a common frame of reference.