Cambridge finance committee hears update on $88 million in ARPA funds as obligation deadline nears

Cambridge Finance Committee Chair Nolan convened a public hearing to review the status of the city’s $88,000,000 in American Rescue Plan Act (ARPA) funding and to hear how staff plan to reconcile contracts and spending ahead of a federal obligation deadline.

City Manager Huang and Matt Nelson, director of administration and operations in the city manager’s office, told the committee that most ARPA dollars are committed to about 88–100 projects and that staff have been working with internal and external recipients to execute contract extensions and obligations. "All funds must be obligated by December 31," Nelson said, outlining a timeline staff hopes to meet by finishing contract work in August and contract updates by the end of September.

Why it matters: The obligation deadline is a hard federal requirement; if contracts and obligations are not in place by the deadline the city risks returning unspent funds. Council members repeatedly pressed staff to ensure the city helps external nonprofit recipients and small businesses complete paperwork and meet reporting requirements so allocations are not forfeited.

Staff said roughly $53 million (Nelson also referred to the amount as "nearly $54,000,000" in the presentation) of the $88 million has been spent or is in the 'complete' category, with other dollars categorized as 'underway' (obligated and being spent) or 'contracting' (not yet obligated). Nelson defined the categories for the council: "Complete" = dollars actually spent; "Underway" = dollars obligated/contracted and being spent down; and "Contracting" = contracts are still being established and not yet obligated.

Nelson said the city has not, to date, reallocated budgets from external ARPA programs and that staff have added extra support to work closely with community project managers. "At this point, we haven't reallocated any budgets from external ARPA programs," Nelson said, adding that external recipients would have two years to spend funds after obligation (Nelson cited "till 12/31/2026 or we're hoping September 2026").

Public commenter Heather Hochman urged the council to reconsider priorities if any funds are available, asking whether ARPA or other dollars could be used to preserve naturally occurring affordable housing rather than primarily funding new subsidized units. "Have we ever thought about whether there's a way to make it possible for housing that we have not subsidized to remain affordable to normal people?" Hochman asked.

Council members asked several program-specific questions. Councilor Siddiqui sought clarification of what ‘‘contract ready’’ means; Nelson said it refers to a project with an executable scope and budget that can be turned into a signed contract quickly so it can be obligated before the federal deadline. Councilor Wilson pressed staff on outreach and technical assistance to ensure community organizations can spend their full allocations and warned about families being pushed into the streets if housing supports fall short; City Manager Huang described limitations tied to state-administered programs such as HomeBASE, saying the city cannot fully supplant state responsibilities but is coordinating with resettlement agencies and local providers to help affected families.

Staff highlighted some examples of ARPA-funded projects that the city considers successful or high-impact: a nonprofit-operations grant ($5,900,000) spread across many organizations; $200,000 to Green Cambridge for a canopy crew expansion; mentorship support at youth soccer nights; Global Arts Live programming; and a mental-health campaign at the Cambridge Community Center. Nelson also relayed partner-reported outcomes, saying a partner reported helping "over 124 start-up businesses." He emphasized that reporting and auditing are ongoing and that staff plan to publish project summaries and impact data on the city's ARPA website.

Council members suggested near-term, quick-spend proposals if small balances remain after reconciliation: targeted energy-efficiency upgrades for small businesses and nonprofits (city staff noted an active program with grants up to $250,000), induction-stove distributions for low-income residents, and small prevention grants to cover first/last-month rent or down-payment support administered through third-party intermediaries.

What’s next: Nelson told the committee staff plan to return to the full City Council in January with reconciliation results and a monitoring plan for project outcomes and spending. The committee adjourned on a 6–0 roll-call vote with three members absent.