By law, most ARC grants require cost share or match funding. Applicants should submit proof of committed match as part of the grant application. ARC state program managers can offer guidance on the amount of match required and available match sources, and provide information about any additional state matching requirements.
Federal requirements related to match can be found in 2 CFR §200.306 “Cost Sharing or Matching.” Amounts proposed for match are expected to be achieved consistent with what is proposed, allowable per applicable federal cost principles, and adequately documented. All match becomes part of the project and is subject to federal regulations
How Match Rates Work
Interactive Map of County Economic Status and Distressed Areas, FY 2023
Each fiscal year, ARC evaluates economic data categorizing each one of the Region’s 423 counties’ economic status as distressed, at-risk, transitional, competitive, or attainment. Each economic designation has a different match rate, which determines the amount of funding that ARC is able to provide. A grant’s final match rate is determined by the economic designations of the proposed service area, which may include multiple counties each with a different economic status. Projects serving counties experiencing higher levels of economic distress are eligible for more funding from ARC and a lower required match rate, as reflected below:
These percentages apply to single county projects. The match percentage for multi-county projects will be determined on a project-by-project basis. Contact your state program manager for help in determining the match required for your project.
Types of Match
All applications for ARC funding must include a formal letter from the matching source indicating a firm commitment to provide the required match.
Cash is the most common form of match. Cash match is often drawn from grantees’ own funds or cash donations from non-federal third parties, such as partner organizations. A cash match contribution is an actual cash contribution. Loans are also counted as cash.
Match can also be pledged as “in-kind”or non-cash donations — or, rather, the value of non-cash donations. These can be in the form of real property (including land and buildings), equipment, supplies, services, training, or other expendable property.
Examples of in-kind donations include, but are not limited to:
- Personnel time given to the project
- Person on loan from another organization/corporation
- Donation of or use of equipment, like use of a crane or bulldozer
- Expert services, like engineering or architectural services
- Value of a lease for project space
State program managers can assist with answering questions about match requirements and helping you find sources of match funds. See additional match resources below.
