Navajo Nation faces critical ARPA fund deadline with key budgetary concerns


WINDOW ROCK

As the Navajo Nation approaches the Dec. 31 deadline to expend $1.4 billion in American Rescue Plan Act, or ARPA, funds, officials are racing to resolve budget deficits and ensure that projects meet federal compliance standards.

A detailed financial report, dated Oct. 4, outlines expenditures, encumbrances, and remaining allocations across key funding categories.

Central Agency

The Navajo Nation’s Central Agency has advanced numerous community projects aimed at improving infrastructure, health care, and essential services. A recent status report, sourced from the Navajo Nation Fiscal Recovery Fund website, highlights over 60 approved projects across the agency’s chapters, including Many Farms, Low Mountain, and Názlíní.

Central Agency’s ARPA-funded initiatives represent significant investments in critical infrastructure and community services.

Chinle Chapter’s approved projects include a new warehouse ($1.2 million), a wellness center ($700,000), bathroom additions ($6.7 million), and addressing longstanding infrastructure gaps.

Many Farms Chapter’s funding includes $750,000 for bathroom additions, $500,000 for HVAC systems, and $1.5 million for water conservation efforts and emphasizing basic utilities and environmental sustainability.

Low Mountain Chapter’s projects, such as elderly bathroom makeovers ($8.7 million) and waterline extensions ($1.6 million), aim to improve living conditions for residents.

Názlíní Chapter’s funding allocations include $150,000 for a cemetery, $350,000 for a warehouse, $450,000 for a community meeting building, and expanding communal spaces and essential facilities.

The report confirms that many projects have been deemed “eligible” by the Navajo Nation Department of Justice and the controller’s office. Oversight responsibilities are divided among divisions, including the Division of Community Development and the Division of Natural Resources.

Significant projects, like ARPA-funded bathroom additions and waterline upgrades, have progressed to the approval stage. These developments indicate that despite early delays in fund deployment, progress is accelerating as the year-end deadline approaches.

While progress is evident, some projects remain in the “Ready for Legislation” stage, requiring coordination between the Navajo Nation Council and relevant divisions. For instance, a $20 million allocation for demolition and rehabilitation in Blue Gap/Tachee and additional water projects in Názlíní are awaiting legislative approval.

Eastern Agency

The Eastern Agency is advancing critical infrastructure and community projects, although some initiatives face delays that could jeopardize funding.

Eastern Agency’s ARPA allocations prioritize infrastructure improvements, housing, and community facilities across chapters such as Red Rock, Lake Valley, and Bread Springs.

Red Rock Chapter’s funding includes $100,000 for rural addressing, $630,000 for housing renovations, and support for water system repairs.

Bread Springs Chapter’s broadband initiatives and rural addressing programs received substantial funding to enhance connectivity and essential services.

Lake Valley Chapter’s allocations include $387,122 for new housing development, $7 million for bathroom additions and renovations, and $15,000 for septic tank cleaning and maintenance.

Rock Springs Chapter: $300,000 has been allocated for chapter warehouse upgrades and enhancing local resources.

Despite progress, some projects remain “Ready for Legislation,” facing logistical challenges or awaiting final approval. For example, a broadband project in Bread Springs was delayed because of missing applications and budget forms, while other projects in Tsayatoh, Rock Springs, and Chinle require legislative action before implementation.

Eastern Agency has been allocated over $8.8 million for various projects. While many initiatives have been approved and deemed eligible, millions remain unallocated or incomplete. If not finalized by Dec. 31, unused funds risk being returned to the federal government.

Fort Defiance Agency

The Fort Defiance Agency has made strides in addressing infrastructure gaps, housing needs, and essential services for chapters like Coyote Canyon, Teesto, and Crystal.

Coyote Canyon Chapter has $800,000 allocated for housing assistance and $35,000 for a chapter renovation project.

Teesto Chapter has $1.5 million for housing repairs and weatherization and $1.4 million for home replacements.

Crystal Chapter has $500,000 for senior center renovations and $800,000 for waterline and bathroom addition renovations.

While progress is evident, some projects remain “Ready for Legislation.” For instance, funding for a warehouse and fire suppression water tank installation in Crystal awaits action.

The Fort Defiance Agency has allocated over $8.8 million, with the majority of projects approved and eligible. However, approximately $1.3 million remains unallocated, and $11 million in pending projects exceed available allocations.

Northern Agency

Northern Agency has focused ARPA investments on housing, sanitation, and infrastructure improvements.

Shiprock Chapter has $1.3 million allocated to the Tsé Bit’ą’í Recreation Park, with additional funding for housing renovations ($1 million), mobile home projects, and veterans housing archaeological clearances.

Cove Chapter has $1.5 million for a chapter warehouse and $600,000 for septic system improvements.

Sanostee Chapter’s projects include waterline extensions and a $1.2 million bulldozer purchase for operations and road maintenance.

While $25 million in ARPA funds has been allocated, $5.6 million in projects await legislation, and $10.8 million in proposed initiatives exceed current budgets.

Western Agency

The Western Agency is working on critical infrastructure, housing, and public service projects.

Kayenta Chapter has $817,669 for a pipeline extension and $1.1 million for warehouse development.

Chiiłchinbii’tó Chapter has funding for septic tank cleaning, housing renovations, and modular homes.

Leupp Chapter has $287,868 for chapter house renovations and $2 million for a multipurpose building.

While $38 million in ARPA-funded projects has been approved, $5.8 million in pending projects and an $8.5 million budget deficit highlight urgent funding gaps.

Summary of allocations and expenditures

The Navajo Nation’s $2 billion ARPA allocation has been distributed across divisions for infrastructure, economic growth, and community welfare. Delays in project execution threaten the full utilization of funds before the federal deadline, after which unspent funds must be returned.

Efforts to fast-track approvals, finalize encumbrances, and address budgetary concerns remain ongoing, with regular updates available through the Navajo Nation Fiscal Recovery Fund website.

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