Wyoming state officials have reclaimed $6.2 million in federal American Rescue Plan Act (ARPA) funds from towns that were unable to meet federal deadlines and redirected the money to municipalities with ongoing water and sewer improvement projects.
The move, led by Gov. Mark Gordon, was aimed at ensuring that the funds remained in Wyoming rather than being returned to the federal government.
The funds are part of Wyoming’s $76.7 million allocation from ARPA, which was designated to support community projects statewide. The reallocation ensures that Wyoming retains the funds to support infrastructure upgrades that are crucial to many small towns and communities.
The federal government’s ARPA program, part of a $1.9 trillion national initiative to aid COVID-19 recovery, required that all state-administered funds be obligated by October 1, 2023. Towns and municipalities were expected to have contracts signed and projects “shovel-ready” by that date. However, staffing shortages, supply chain disruptions, and limited availability of contractors created obstacles for some towns.
Small communities like Lingle, Wamsutter, and Big Piney faced significant hurdles in navigating the complex federal compliance requirements. Towns that failed to meet the deadline had their grants reclaimed by the Wyoming State Lands and Investments Board, which then redistributed the funds to other municipalities with active, ongoing projects.
One of the major recipients of the reallocated funds was the town of Saratoga, which received an additional $440,000 for its River Street water line replacement project. Combined with its initial grant of $700,000, Saratoga’s total ARPA funding for the project now stands at $1.14 million. Public Works Director Emery Penner stated that the town plans to replace two sewer pipes running beneath the North Platte River as part of the next phase of the project.
Under the guidance of the Wyoming State Lands and Investments Board, towns that were able to meet the ARPA deadlines became priority recipients for the reallocated funds. Projects that had already undergone preliminary design and compliance work were deemed “shovel-ready” and able to make use of the funds before the federal deadline.
Christine Emminger, the State Budget Department’s Grants Management Administrator, explained that Wyoming was proactive in monitoring the situation.
“The State of Wyoming knew that there was a very large amount of granted [ARPA] funds that had the possibility of being relinquished [back to the federal government] due to the contingency outlined within the grant agreements,” she said.
To avoid losing the funds, the state set an internal deadline of October 1, giving officials time to reclaim and reallocate any unused funds. The result was a $6.2 million redistribution to other towns and local water districts.
The need for water and sewer system improvements is a longstanding issue in many Wyoming communities. Aging infrastructure, combined with the high cost of upgrades, makes it difficult for small towns to keep pace with necessary repairs. Some communities, like Rawlins, face multi-million-dollar water infrastructure needs. Rawlins, for example, is working to replace wooden water pipes that are more than a century old, with an estimated $60 million required for system-wide upgrades.
Communities like Midwest and Edgerton are also relying on ARPA funds to complete a $5 million project to replace a critical 7-mile-long potable water pipeline running through the Salt Creek oilfield. This pipeline is at risk of corrosion due to acidic soil conditions in the area. Without the upgrade, residents would lose access to potable water, according to Salt Creek Joint Powers Board Clerk Cindy Aars.
“It’s a hard thing — the federal government puts you in a use-it-or-lose-it situation with this program,” said Justin Schilling, Deputy Director of the Wyoming Association of Municipalities. “But you can’t let the clock hit midnight and watch that money just disappear back to Washington, D.C.”
The reallocation of ARPA funds was not limited to water and sewer projects. The Governor’s Office announced that $76.7 million of Wyoming’s ARPA allocation has been fully committed to various pandemic-related relief projects. One of the beneficiaries of the reallocation was Eagles Hope Transitional Housing in Riverton, which received $500,000 to support its community housing efforts.
As the federal ARPA program winds down, many small towns are left to seek alternative funding sources for infrastructure projects that were not completed in time. For some, the state’s Mineral Royalty Grant program offers another potential avenue for support. Gov. Gordon has proposed adding $20 million to this fund to help towns facing emergency infrastructure needs.
If approved by the Wyoming Legislature, Gordon’s proposal would increase the total available funding for the 2025-26 budget cycle to $47.5 million. This funding could provide critical support for essential water and sewer upgrades, particularly for small communities that face difficulties securing funding through other sources.
Gov. Gordon emphasized the long-term impact of the reallocation, noting that the goal is to create lasting infrastructure for future generations.
“These [ARPA] dollars went out all over the United States, so it’s not like you can borrow big industrial contractors from other states to come in,” Gordon said.
With input from Wyo File, Bigfoot99 Radio, and WyoToday.com.
