ARPA Funds Are Winding Down: How Towns Pay for a Website Now
The federal money many municipalities used to build or upgrade their websites is running out. If your town obligated American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) toward a website project before the deadline, you still have time to spend it. If you didn’t, that funding source is no longer available for new projects.
Here’s where SLFRF stands as of August 2026, and how municipalities that don’t have ARPA dollars left are budgeting for a website today.
Where SLFRF Stands Now
The obligation deadline for SLFRF passed on December 31, 2024. Recipients had to have committed their funds to a specific eligible use by that date, and that window is closed — municipalities can no longer newly obligate SLFRF dollars toward a website or any other project.
The spending deadline is December 31, 2026. If your municipality already obligated SLFRF funds for a website project, or for a broader eligible category that a website falls under, you can still draw down that money and pay for the work before the deadline. Funds that aren’t spent by then have to be returned to the U.S. Treasury.
In short: already obligated, still spendable through the end of 2026. Not obligated, no longer an option.
What SLFRF Was, Briefly
The American Rescue Plan Act was a $1.9 trillion federal package passed by Congress in March 2021 to help the country recover from the economic and public health impacts of the COVID-19 pandemic. Part of it, the Coronavirus State and Local Fiscal Recovery Funds, sent money directly to states, counties, cities, towns, and tribal governments to cover things like public health response, replacing lost revenue, and water, sewer, and broadband infrastructure.
Modernizing government services was also an eligible use, and that category is where municipal websites, online payment tools, and accessibility upgrades fit in. Town Web previously worked with legal counsel experienced with the Wisconsin Towns Association to confirm that municipal website design, hosting, and email services qualified as an eligible SLFRF expense — both as a response to the pandemic’s economic impact and as a government service municipalities could fund with recovery-fund revenue replacement. That determination is part of why so many municipalities used SLFRF dollars on their websites over the past few years.
How Municipalities Are Paying for a Website Now
With the SLFRF window closed for anyone who hasn’t already obligated funds, most municipalities are back to funding a website the way they fund other recurring services. A few practical approaches we see municipalities use:
- General fund / annual operating budget: A fixed-price website with a known annual cost fits into a budget line the same way software licenses, insurance, or utility service does. Because the cost is predictable, it’s easier for a board or council to approve as a routine line item rather than a special appropriation.
- Capital improvement plan: Many municipalities already plan multi-year spending on roads, water systems, and equipment through a capital improvement plan. Technology and website costs can be scheduled the same way, spreading the expense across budget years instead of asking for it all at once.
- Multi-year fixed-price contracts: A fixed-price agreement locks in the cost of design, hosting, and support for a set term, which makes it easier to budget for in advance and avoids surprise costs mid-contract. See our fixed-price website design for how this works.
- State and federal grant programs: Some state municipal associations, regional planning commissions, and federal agencies offer grant programs that cover local government technology upgrades from time to time. Availability and eligibility change often, so check with your state municipal association or regional planning commission for what’s currently open.
The common thread: a website doesn’t have to be a one-time capital expense tied to a specific grant program. Treated as a predictable operating cost, it’s one of the easier line items for a small municipality to budget for year after year.
If You Already Have ARPA Funds Obligated
If your municipality obligated SLFRF funds for a website project, or for a category that a website falls under, before the December 31, 2024 deadline, you can still use that money before December 31, 2026. Confirm with whoever manages your ARPA reporting that the obligation covers the work, and keep your documentation in order for reporting purposes.
Whether you’re spending down the last of an ARPA obligation or budgeting fresh, get a no-obligation quote for a fixed-price municipal website, and we’ll help you figure out what fits your timeline and budget.
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