Interest income surge fades as ARPA funds run out

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ADRIAN — Lenawee County finance officials say a surge in interest income helped boost the county’s year-end outlook in 2025, but that increase is not expected to continue.

During a recent Accounts Payable and reconciliation meeting, the county’s finance team reported interest earnings climbed from about $500,000 budgeted to roughly $2.1 million this year.

The increase was largely driven by temporarily unspent federal American Rescue Plan Act funds, which generated interest while awaiting allocation.

Finance staff told the committee those ARPA funds are now nearly exhausted, signaling the windfall is ending. As an example, the finance director noted the county’s November interest posting totaled just 66 cents, indicating little remaining balance to generate returns.

Officials cautioned that while the added interest revenue helped support a projected year-end surplus, it should not be viewed as a recurring source of funding.

The budget adjustments and financial reconciliation were unanimously approved by the committee and forwarded to the Lenawee County Board of Commissioners for consideration.