ARPA vs. CARES Act Stimulus Funds – What’s the Difference?

american rescue plan text on paper

“This is a chance to make a generational investment in local government and education to help them prepare and be ready for the next era where more and more services are expected to be digital. Citizens expect to access information and expect to work remotely, securely, easily, and safely. I really think this is going to have long-lasting benefits and impact for local government.” – Owner of Slate Consulting, Ryan Gallant
Source: American Rescue Plan FAQ

What is CARES?

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March of 2020, allotted $2.2 trillion to provide fast and direct economic aid to the American people and government agencies negatively impacted by COVID-19. Agencies applied for funding from their state with specific technology requirements to support remote work and continuous operations for their employees and communities. CARES funds were limited to non-budgeted technology needs and must be implemented by December 31, 2020. This implementation deadline has since extended to December 31, 2021.

What is ARPA?

The American Rescue Plan Act (ARPA) is the third and largest, and in fact, most broad COVID-related appropriation act passed in the United States in the past year.

The $1.9 trillion of funds will be distributed across the country at all levels, including much-needed relief for state and local governments, K-12 education, and higher education institutions to address operational technology needs.

pie charts outlining ARPA stimulus funds

This is big news for government agencies – just in time for budget planning too! Many agencies announced that plans for the next fiscal year are suspended because this incoming aid and strategic planning are needed to make the most rescue funds. ARPA funds go beyond the rescue aspect but support future-proofing government operations for generations to come.

How to receive your agency’s ARPA funds?

  • Direct payment from the Treasury will be made to:
  • States (defined to include the District of Columbia)
  • Territories
  • Tribal governments
  • Counties
  • Metropolitan cities

Research and request your funding on the US Treasury portal.

Interested in finding more resources around GovTech funding? Visit our ARPA and CARES Act funding resources.