Durham County says 89% of ARPA funds committed; staff outline spending rules and next steps

Deputy County Manager Claudia Hager and Grants Administrator John Keefer updated the Durham County Board of Commissioners on May 6 about the county’s use of $62,445,275 in American Rescue Plan Act (ARPA) funds, saying 89% of the allocation has been committed and outlining Treasury guidance that affects spending deadlines.

Why it matters: The guidance changes may affect staffing, contracts and the county’s ability to reassign funds; the Board asked staff for follow-up data to inform FY25 budget decisions.

Keefer summarized recent U.S. Treasury guidance, saying local governments “may now utilize ARPA funding for personnel costs through December 31, 2026, if the position was established and filled by December 31, 2024.” He added that projects may be reclassified or adjusted if obligations were in place before the end-of-2024 cutoff and that, in some circumstances, replacement contracts for substantially the same services are permitted.

Hager said Durham County has committed about 89% of its ARPA allocation and noted deadlines for encumbrance and invoicing under the Treasury rules. She told commissioners staff planned to return with more detailed information about remaining balances and specific program impacts.

Vice-Chair Nimasheena Burns questioned how many ARPA-funded positions are temporary versus full-time and whether temporary workers had been told when funding would end; Hager said the county has been “very conservative with hiring staff” and transparent with contractors and temporary employees about end dates. Commissioner Wendy Jacobs asked for Board input on the remaining ARPA balance and for data on broadband supports; Hager said she would provide more specific information at a future session. Commissioner Brenda Howerton asked what would happen to programs after ARPA-funded contracts end; Hager said many contracts conclude in mid-to-late 2025 and that funding constraints will limit continuation beyond those terms.

The Board requested several follow-ups: a staff presentation on opioid settlement funds and an updated list of approved ARPA projects together with FAQs on the county’s ARPA webpage.

Next steps: Staff will return with more detailed budget and program information and post the requested materials online for the Board and public.