Wyoming Completes Deployment of $76.7 million in American Rescue Plan Act (ARPA)  Funds for Community Projects

The Wyoming Governor’s Office announced that Wyoming’s allocation of the American Rescue Plan Act (ARPA) funds are now fully committed, making it unlikely that any of those funds will be returned to the Federal government.

Wyoming received nearly $1.1 billion from the federal ARPA of 2021. Of that amount, approximately $584 million was used to replace revenue lost as a result of the economic downturn caused by the effects of the COVID-19 pandemic. One impact of that downturn was that for the first time in the state’s history, there was a period of time when no oil and gas drilling rigs were operating in Wyoming. Most of the revenue replacement funds were used within the Department of Health and Department of Corrections to conserve the General Fund dollars appropriated to them, ensuring the State had a sustainable approach to its operations during the economic downturn. Some of those General Fund dollars were also put into permanent savings, which will generate income to the benefit of Wyoming taxpayers for future generations.

“The ARPA funds appropriated by the Federal government will be paid for by our children and grandchildren,” Governor Gordon stated. “It is fitting that we use those funds at a state level to reduce the potential tax burden of Wyoming’s current and future taxpayers.”

Like all federal programs, ARPA funds could only be used for certain purposes, as determined by the federal government, including the requirement of a nexus to direct impacts of the pandemic. The Wyoming Legislature appropriated the remaining ARPA funds for support of mental health, healthcare, infrastructure, water and sewer projects. These funds were granted through state agencies. In addition, all proposed projects were reviewed by the State Budget Department, in consultation with an audit firm, and the Office of the Attorney General to assure compliance to the extent practical with federal and state law and regulations.

Not surprisingly, there were a number of communities and organizations who were unable to completely obligate the ARPA funds within federally mandated time frames. Recognizing that possibility, the Wyoming Legislature provided the Governor the authority to establish a process so that those projects that were ARPA-funded, but not obligated on time, could be redeployed prior to the federal deadline. Governor Gordon primarily redeployed these unobligated funds to community projects, particularly choosing to reduce participating communities’ local cost share of water and sewer projects, which are the safest category available for the use of ARPA funds. 

In addition, $13.7 million was conditionally approved by the State Land and Investment Board (SLIB) for inflationary costs for approved Health and Human Services (HHS) related projects during the 2023 General Session through 2023 House Bill 0195. Due to the complicated federal requirements, HHS projects funded by ARPA dollars were always considered to be at the highest risk for eventual clawback by the federal government.  The Governor and SLIB recognized this risk and thus did not redeploy unobligated ARPA funds for additional funding for HHS projects. 

In summary, approximately $76.7 million was redeployed for various projects, the majority into community infrastructure projects. A list of those projects can be found here: https://sbd.wyo.gov/