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League warns dozens of Utah communities risk ARPA clawbacks; staff urges immediate outreach
Summary
League staff said at least 17 Utah communities had not filed required ARPA reports and could face federal clawbacks if reports are not submitted by the stated Treasury deadline.
Molly, a League staff member, told the board the League has been coordinating outreach to local governments to ensure American Rescue Plan Act (ARPA) reporting compliance and said the federal Treasury had set a near term deadline for remaining non‑reporting communities.
Why it matters: Failure to file required ARPA reports can trigger federal clawbacks and interest‑bearing penalties, which would reduce funds available for local services and projects.
Molly said the League, the National League of Cities and state staff had worked together to contact stranded local governments. At one point the League tracked roughly 44 communities with missing reports; that number had fallen and, at the meeting, Molly said “at this point, I think, we are down to about 17 communities that we still need to reach out to.”
She urged board members who have contact with those cities to assist outreach. “If you have any communication with any of these cities that are still on this list, we really appreciate you guys reach out to these communities,” Molly said. “This Thursday is, like, do or die. If that report is not in, federal clawbacks will start.”
League staff reported the total state exposure from noncompliance was about $5.3 million based on earlier Treasury guidance, but noted exposure varied widely by locality and some speakers referenced larger potential losses for individual jurisdictions without specifying exact figures.
Staff said they have accessed Treasury help lines and were working with regional Association of Governments liaisons to resolve outstanding reporting questions. The board asked staff to continue targeted outreach and to provide an updated list and status at the April meeting.
