KnowledgeLake Blog

Unlocking ARPA Funds: The Key to Government Digital Transformation

Written by Bart Peluso | Feb 13, 2025 4:42:01 PM

Leverage Your ARPA Funds Before the 2026 Deadline

State and local governments across the country are in a critical phase of their American Rescue Plan Act (ARPA) funding strategy. While many agencies successfully obligated their funds before the December 31, 2024, deadline, they now face the challenge of effectively expending those funds by December 31, 2026 to modernize operations, enhance service delivery, and improve efficiency.

If your agency set aside ARPA funding for digital transformation, automation, or IT modernization, there’s still time to ensure you invest in the right technology—one that delivers lasting impact. KnowledgeLake’s AI-powered automation platform helps governments streamline document processing, reduce administrative burdens, and enhance public service operations.

Can Previously Obligated ARPA Funds Be Used to Purchase IDP and Automation Technology?

Yes. If your agency previously obligated ARPA funds for digital transformation but has not yet expended them, you can still use those funds to implement Intelligent Document Processing (IDP) and automation technology—as long as the funds are spent before the December 31, 2026, deadline.

What Counts as an ARPA Obligation?

The U.S. Department of Treasury defines an obligation as a binding commitment to spend funds—such as a contract, grant agreement, or purchase order. If your agency allocated funds for workflow automation, process improvement, or IT modernization, investing in IDP and AI-driven automation solutions is a compliant and strategic way to ensure those funds drive meaningful impact.

Why KnowledgeLake for Government Digital Transformation?

Government agencies face increasing pressure to modernize outdated workflows, improve compliance, and enhance service delivery—all while managing limited resources. KnowledgeLake’s AI-powered automation platform is built to address these challenges by:

  • Transform Document Management (ECM) – Eliminate data silos and cumbersome document retrieval. With 24 years of expertise, we modernize agencies by consolidating legacy systems into one secure, scalable ECM solution, improving both staff and taxpayer experiences.
  • Automating Paper-Intensive Processes – Reduce manual data entry and improve efficiency in records management, licensing, permitting, and grant processing.
  • Enhancing Compliance & Security – Maintain compliance with federal and state regulations through secure, cloud-native document management.
  • Faster Service, Happier Citizens – Replace slow, paper-heavy processes with Gen-AI document processing. Our end-to-end automation further accelerates response times, reduces backlogs, and streamlines workflows for better citizen service.
  • Integrating Seamlessly with Microsoft Government Cloud – KnowledgeLake works with Microsoft GCC & GCC High, ensuring a secure and compliant digital transformation.

Act Now: Ensure Your ARPA Funds Deliver Maximum Impact

With the 2026 expenditure deadline fast approaching, state and local governments must act quickly to deploy their obligated funds effectively. Investing in KnowledgeLake’s government modernization solutions ensures that your agency achieves long-term efficiency, cost savings, and improved service delivery.

To help counties accelerate their modernization efforts, we’ve launched the Digital County Government Modernization Program. This program provides a proven roadmap to transform document management, automate workflows, and improve citizen services. Learn more about how your county can benefit by visiting Digital County Government Modernization Program.

Get Started Today

Don’t let your ARPA funding go unused. Contact KnowledgeLake today to learn how our AI-powered automation platform can help your government agency maximize efficiency, reduce administrative burdens, and enhance public services.

Let’s work together to modernize government operations and make the most of your ARPA investment!