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Committee presses F&A on ARPA spending as deadlines approach; agency readies fallbacks
Summary
Lawmakers pressed the Department of Finance and Administration about ARPA projects showing little or no expenditures. Deputy Commissioner Eugene Neubert said many projects are cash‑flowing locally and F&A is preparing fallback uses and more frequent reporting to the Financial Stimulus Accountability Group to avoid losing federal dollars.
Chairman Tim Hicks pressed the Department of Finance and Administration on projects that show no expenditures as the federal ARPA deadline nears, pointing to a TDOT megasite road project and a Knox County forensic center. "We've got 2 projects in there that show no expenditures, and that makes me a little bit nervous," Hicks said during questioning.
Deputy Commissioner Eugene Neubert told the committee the two specific projects are progressing and that local partners have fronted costs that will be reimbursed. "They're cash flowing a lot of that work, in their own budget and then plan on early '26...submitting a bill to just recoup all of those costs," Neubert said. He added that F&A is assembling "Plan B" fallbacks to reallocate eligible ARPA funds late in 2026 if particular projects underspend.
Neubert said the department will accelerate reports to the Financial Stimulus Accountability Group (FSAG) from quarterly to more frequent updates so FSAG can monitor at‑risk projects and redirect funds where eligible. "Rest assured that that is our plan," he said. Committee members asked whether FSAG should reconvene sooner to reassess commitments; Neubert and Commissioner Jim Bridal said they would do so if needed.
Why it matters: ARPA dollars allocated for capital projects and recovery must be spent by federal deadlines; underspent projects risk forfeiture or the need for reallocation. The committee sought clarity on which projects are at risk and how the state will ensure full drawdown without disrupting state plans.
What comes next: F&A said it will provide more frequent expenditure reporting to FSAG leadership and inform the committee if projects appear unlikely to meet expenditure timelines.
