State and Local Fiscal Recovery Funds Disaster Response and Recovery (Treasury slide deck, October 30, 2024)
Summary
Treasury slide deck dated October 30, 2024, State and Local Fiscal Recovery Funds Disaster Response and Recovery. The slides say the SLFRF program, authorized by the American Rescue Plan, allocated $350 billion to states, territories, localities and Tribal governments, and that Treasury has disbursed 99.99% of SLFRF funds to more than 30,000 recipients. They report that as of June 30, 2024 states and the largest cities and counties have reported budgeting 95% of their SLFRF funds to specific projects, and that recipients reported $353 billion in lost revenue with nearly $136 billion budgeted to replace it. They explain that funds may only cover costs incurred by December 31, 2024, that funds must be expended by December 31, 2026, and what counts as an obligation. These are Treasury's own statements.
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“State and Local Fiscal Recovery Funds Disaster Response and Recovery (Treasury slide deck, October 30, 2024).”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-the-treasury-slide-deck-home-treasury-gov-system-files-1-672d7e89fb/
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October 30, 2024
State and Local Fiscal Recovery Funds
Disaster Response and Recovery
2
Today’s agenda
• Background on SLFRF
• Recently Released 2024 Reporting Data
• Public Data Demonstration
• Obligation Guidance – Revenue Replacement and
Interagency Agreements (IAA)
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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State and Local Fiscal Recovery Funds (SLFRF) Program Background
• The State and Local Fiscal Recovery Funds (SLFRF) program, authorized by the historic
American Rescue Plan, allocated $350 billion to states, territories, localities, and Tribal
governments to respond to the COVID-19 pandemic and build a strong, resilient, and
equitable recovery. Metropolitan cities were allocated $45.6 billion and non-
entitlement units of local government were allocated $19.5 billion.
• Treasury has disbursed 99.99% of SLFRF funds to more than 30,000 recipients.
• Funds used for pandemic recovery, fiscal management and future-looking initiatives
• Recipients used funds to respond to acute public health and negative economic
impacts of the pandemic
• Recipients also laid the foundation for future prosperity through investments in
affordable housing, workforce development, infrastructure, and small businesses
• Recipients choose how to spend the funds on eligible uses
• Additional information—including on the 7 eligible uses—at Treasury.gov/SLFRF
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Topline Findings: Q2 Reporting Cycle
• As of June 30, 2024:
• States and the largest cities and counties have reported
budgeting 95% of their total SLFRF funds to specific projects,
with the total number of reported projects growing 7% since the
previous reporting period.
▪ Among quarterly reporters, recipients have a 98% Submission Rate for their Recovery Plans
• SLFRF
▪ 84% Submission wererecipients reported
completed by July 31st $353 billion in lost revenue
resulting from the pandemic.
• More than 22,200 participating governments reported that
they are budgeting nearly $136 billion in SLFRF funds to help
replace this lost revenue, funding more than 83,000 projects to
provide fiscal stability in their jurisdictions.
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Q2 2024 SLFRF Data
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Data Dashboard Demonstration
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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What is an obligation?
• Statutory requirement that SLFRF funds may only be used to cover costs incurred by
December 31, 2024; a cost is considered incurred if a recipient has incurred an obligation by
that date.
• All recipients must expend their SLFRF funds by December 31, 2026, except for Surface
Transportation and Title I projects, which have an earlier deadline of September 30, 2026.
An obligation is:
1. An order placed for property and services and entry into contracts, subawards, and
similar transactions that require payment, which may include:
o An order placed for property or services
o Contract
o Subaward
o Similar transactions that require payment, which may include:
▪ Certain interagency agreements (including MOUs) (see FAQ 17.6)
▪ nder certain circumstances, payroll expenses for recipients’ employees (see FAQ 17.7)
2. A requirement under federal law or regulation or a provision of the SLFRF award terms
and conditions to which the recipient becomes subject as a result of receiving or
expending SLFRF funds.
Treasury released FAQs to provide additional clarifications on these items in
FAQs Section 17: https://home.treasury.gov/system/files/136/SLFRF-Final-Rule-FAQ.pdf
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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An obligation is NOT:
• An adopted budget or budget amendment
• An appropriation of SLFRF funds
• An executive order
• A resolution
• A written or oral intention to enter into a contract
• A grant of legal authority to enter into a contract
• Claiming funds under the revenue loss category
• Moving SLFRF funds to a general fund as revenue loss but not
further establishing an obligation with those funds by
12/31/24
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Aren’t revenue loss funds automatically obligated?
• NO. See FAQ 17.15.
• All SLFRF funds under any eligible use category are subject to the obligation
requirements – including funds used under the revenue loss category.
• This means that, when a recipient uses funds to provide government services,
those funds must be obligated via one of the pathways discussed on slide 7.
• If a recipient is utilizing revenue loss to pay for government services, the recipient
must report the use as project(s) under expenditure category 6.1.
• Recipients must enter a project description for any
project entered under 6.1. Revenue loss project
descriptions must summarize the project in sufficient
detail to provide an understanding of the major activities
that will occur. Descriptions should establish what the
project seeks to accomplish and should include enough
information to make clear how the recipient determined
the project’s eligibility
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Does an interagency agreement (IAA) count as an obligation?
• Yes, if it meets certain conditions.
• An interagency agreement finalized by 12/31/2024 can be used to obligate funds
that a government agency will expend in 2025 and 2026.
• Eligible agreements include memoranda of understanding (MOU) or agreement
(MOA). The agreement must meet these conditions:
ONE requirement from Column A: ALL requirements from Column B:
Imposes conditions on the use of funds by Has specific requirements (e.g., scope of
recipient agency, department, or part of work)
government
Governs provision of funds from one agency, Is signed by the parties or evidences assent of
department, or part of government to another parties
Governs the procurement of goods or services Does not disclaim binding effect or state that
it doesn’t create rights or obligations
• See FAQ 17.6 for more information.
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Frequently Asked Questions
Does Treasury allow for report extensions for recipients in
areas that are actively being affected by an ongoing natural
disaster?
Treasury is aware that some recipients have experienced natural
disasters in their area, which may cause delay in the report
submission process. Treasury will continue to accept reports
from communities experiencing hardship caused by Hurricanes
Helene and Milton, but all such outstanding reports should be
submitted as soon as possible.
Please refer to the SLFRF homepage “News and Program
Updates” section for our most up-to-date guidance and
resources.
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Frequently Asked Questions
How can my government use its allocated SLFRF funds?
It is ultimately up to the recipient to identify and spend their
SLFRF funds in accordance with program requirements and their
existing policies and procedures. There are seven eligible use
categories recipients can use listed below and on the website
www.treasury.gov/slfrf under Eligible Uses.
Recipients must obligate SLFRF funds by December 31, 2024,
and expend obligated funds by December 31, 2026 (with the
exception of projects under the Surface Transportation projects
and Title I eligible use categories, for which funds must be
expended by September 30, 2026).
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Frequently Asked Questions
How can my government use its allocated SLFRF funds? (continued)
Some examples of eligible SLFRF fund uses are:
• Replace lost public sector revenue, using this funding to provide government services up to the amount
of revenue loss due to the pandemic. (Please see the 2022 Final Rule, pages 9-11 of the Overview of the
2022 Final Rule, and Section 3 of the SLFRF FAQs)
• Support the COVID-19 public health and economic response by addressing COVID-19 and its impact on
public health as well as addressing economic harms to households, small businesses, nonprofits,
impacted industries, and the public sector. (Please see the 2022 Final Rule, pages 12-34 of the 2022
Overview of the Final Rule, and Section 2 of the SLFRF FAQs)
• Provide premium pay for eligible workers performing essential work, offering additional support to those
who have and will bear the greatest health risks because of their service in critical sectors. (See the 2022
Final Rule, pages 35-36 of the Overview of the 2022 Final Rule, and Section 5 of the SLFRF FAQs)
• Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access
to clean drinking water, to support vital wastewater and stormwater infrastructure, and to expand
affordable access to broadband internet. (Please see the 2022 Final Rule, pages 37-40 of the Overview
of the 2022 Final Rule, and Section 6 of the SLFRF FAQs).
• Provide emergency relief from the physical and economic impacts of natural disasters. (Please
see the 2023 Interim Final Rule and pages 4-8 of the Overview of the 2023 Interim Final Rule)
• Invest in surface transportation projects, utilizing funds for eligible projects through three pathways.
(Please see the 2023 Interim Final Rule and pages 9-15 of the Overview of the 2023 Interim Final Rule)
• Invest in Title I projects, in which includes eligible activities under the Community Development Block
Grant (CDBG) program and the Indian Community Development Block Grant (ICDBG) program, as
provided in section 105(a) of the Housing and Community Development Act of 1974. (Please see
the 2023 Interim Final Rule and pages 16-19 of the Overview of the 2023 Interim Final Rule)
PREDECISIONAL/INTERNAL ONLY
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Frequently Asked Questions
May recipients fund a project with both ARPA funds and other sources of
funding (e.g., blending, braiding, or other pairing funding sources),
including in conjunction with financing provided through a debt
issuance?
Generally, yes, provided that the costs are eligible costs under each source
program and are compliant with all related statutory and regulatory
requirements and policies, as applicable, including restrictions on use of funds
(e.g., Buy America Preference (see FAQs #6.18, #6.19), National
Environmental Policy Act (see FAQ #6.3)). See FAQ 4.8 for more on blending
and braiding funds.
May recipients use funds to satisfy non-federal matching requirements?
Under the specific circumstances described in FAQ 4.6, recipients may use
SLFRF funds to satisfy non-federal matching requirements. Otherwise,
recipients may not use SLFRF funds to meet the non-federal match or cost-
share requirement of other federal financial assistance programs.
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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For More Information about SLFRF:
lease visit reasury’s tate & Local website
at www.treasury.gov/SLFRF
Thank you. To share your stories:
Please email SLFRFstories@treasury.gov
For Media Inquiries:
Please contact the U.S. Treasury Press Office
at (202) 622-2960
For General Inquiries:
Please email SLFRF@treasury.gov
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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