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Home Source documents Overview of the State and Local Fiscal Recovery Funds 2023 (August 2023)

Overview of the State and Local Fiscal Recovery Funds 2023 (August 2023)

Summary

A Department of the Treasury slide presentation, Overview of the State and Local Fiscal Recovery Funds 2023 Interim Final Rule, dated August 2023. The agenda covers a discussion of eligible uses (Emergency Relief from Natural Disasters, Surface Transportation projects and Title I projects), a summary, a public comment period overview, and Q&A. The slides describe a two-step process for designing an eligible use under Emergency Relief from Natural Disasters: identify the natural disaster, then identify the emergency relief. The public comment slides state that comments may be submitted electronically through the Federal eRulemaking Portal, and that Tribal governments may provide feedback during the Tribal consultation on September 12, 2023.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials

Cite this document

“Overview of the State and Local Fiscal Recovery Funds 2023 (August 2023).” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-the-treasury-slide-presentation-home-treasury-gov-701ae3e96d/, SHA-256 c3a9daa4dcb061c3d7ef07e0c2769ae4fcd3703f646ff20afea5d04b50f77092.

Full text

Overview of the State and Local
Fiscal Recovery Funds 2023 Interim
Final Rule
August 2023
                                                                                   2



Housekeeping

GETTING STARTED

Before we begin, please have the following documents
available:

        •        Overview of the 2022 Final Rule
        •        2022 Final Rule Frequently Asked Questions
        •        Overview of the 2023 Interim Final Rule
        •        2023 Interim Final Rule

Links to each of these documents are available in the
announcement email and in the meeting invitation


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AGENDA

Session Overview

Discussion of eligible uses
     Emergency Relief from Natural Disasters
     Surface Transportation projects
                                                                                   Generally, the existing eligible
     Title I projects
                                                                                   uses, as discussed in the 2022
Summary                                                                            final rule, remain unchanged.
                                                                                   Recipients may continue to
Public Comment Period Overview                                                     use SLFRF funds in alignment
Q&A                                                                                with the 2022 final rule.




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AGENDA

Session Overview

Discussion of eligible uses
     Emergency Relief from Natural Disasters
     Surface Transportation projects
     Title I projects

Summary

Public Comment Period Overview

Q&A




U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters     Surface Transportation             Title I                      5



   Emergency Relief from Natural Disasters - Summary



                    In this section you will learn the following:


                    1. Newly available uses under the Emergency Relief
                       from Natural Disasters eligible use category
                    2. The two-step process for identifying an eligible use




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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   Emergency Relief from Natural Disasters - Overview

                                     Two-Step Process For Designing An Eligible Use




   1                                                                              2
                    Identify Natural Disaster                                         Identify Emergency Relief




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   Emergency Relief from Natural Disasters - Overview

                                     Two-Step Process For Designing An Eligible Use


       1                                                   Identify Natural Disaster

           Defining a natural disaster

           Natural disaster is defined as a hurricane, tornado, storm, flood,
           high water, wind-driven water, tidal wave, tsunami, earthquake,
           volcanic eruption, landslide, mudslide, snowstorm, drought, or
           fire, in each case attributable to natural causes, that causes or
           may cause substantial damage, injury, or imminent threat to
           civilian property or persons. A natural disaster may also include
           another type of natural catastrophe, attributable to natural
           causes, that causes, or may cause, substantial damage, injury, or
           imminent threat to civilian property or persons.
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   Emergency Relief from Natural Disasters - Overview

                                     Two-Step Process For Designing An Eligible Use


       2                                                  Identify Emergency Relief
           Identify emergency relief:
                    • Assistance needed to save lives and to protect property and public
                      health and safety, or to lessen or avert the threat of catastrophe
                    • Responds to the physical or negative economic impacts, or potential
                      physical or negative economic impacts, of a natural disaster
                    • Is related and reasonably proportional to the impact identified

                                       Two Scenarios For Providing Emergency Relief


           Natural Disaster Has Occurred Or Is                                            Natural Disaster Is Threatened
     A                                                                                B
             Expected To Occur Imminently                                                    To Occur In The Future
                    Assistance needed to save lives and to protect                         Assistance needed to lessen or avert the threat of
                        property and public health and safety                                                catastrophe

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                                                                                                          All emergency relief must
   Emergency Relief from Natural Disasters                                                                be related and reasonably
                                                                                                                 proportional


  A                  Natural Disaster Has Occurred Or is Expected To Occur Imminently

   1                Identify Natural Disaster                                         2         Identify Emergency Relief

       Event meets the definition of natural                                              Enumerated eligible uses:
       disaster and is, or was, the subject of                                            • Temporary emergency housing
       a declaration or designation in the                                                • Food assistance
       form of:                                                                           • Financial assistance for lost wages
       • Stafford Act declaration                                                         • Other immediate needs
       • Emergency declaration by the                                                         • Emergency protective
          Governor of a state                                                                    measures
       • Emergency declaration by a Tribal                                                    • Debris removal
          government
                                                                                              • Public infrastructure repair
       • Designation of an event as a
                                                                                              • Increased operational costs
          natural disaster by the chief
          executive of the recipient                                                          • Cash assistance
          government                                                                          • Home repairs

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                                                                                                           All emergency relief must
   Emergency Relief from Natural Disasters                                                                 be related and reasonably
                                                                                                                  proportional


  B                             Natural Disaster Is Threatened to Occur in the Future

   1                Identify Natural Disaster                                         2         Identify Emergency Relief

       • Document evidence of historical                                                  • Identify emergency relief that
         patterns or predictions of natural                                                 lessens or averts the threat of a
         disasters that reasonably                                                          natural disaster and its potential
         demonstrate the likelihood of                                                      physical or negative economic
         future occurrence of a natural                                                     impacts
         disaster                                                                         • Enumerated eligible uses:
                                                                                            mitigation activities




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                                                                                                        All emergency relief must
   Emergency Relief from Natural Disasters                                                              be related and reasonably
                                                                                                               proportional


  B                             Natural Disaster Is Threatened to Occur in the Future

   2                                                    Identify Emergency Relief

                      Mitigation Activities                                                    Written Justification
       • Mitigation activities may be:                                                • For mitigation activities with capital
          • Stand-alone projects that reduce                                            expenditures exceeding $1 million,
              or eliminate potential impacts of                                         recipients (except for Tribal
              the threat of a natural disaster                                          governments) must complete a
          • Incorporated into repair or                                                 Written Justification:
              reconstruction projects that                                                • Include description of emergency
              address the impacts of a natural                                              relief and threat or impact to be
              disaster                                                                      addressed
                                                                                          • Explain why a capital expenditure
                                                                                            is appropriate
                                                                                          • Compare proposed expenditure
                                                                                            against alternatives


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   Emergency Relief from Natural Disasters - Overview

                                                          Duplication of Benefits


     • If a recipient uses SLFRF funds to provide assistance for losses resulting from a
       natural disaster that is the subject of a Stafford Act declaration, the Stafford Act’s
       prohibition on duplication of benefits applies. See 5 U.S.C. 5155(a).




                                            Recipients may not provide financial
                                        assistance to a person, business concern, or
                                       other entity with respect to disaster losses for
                                         which the beneficiary will receive financial
                                        assistance under any other program or from
                                               insurance or any other source.


 *See IFR for more details on duplication of benefits requirements

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   Emergency Relief from Natural Disasters - Overview

                                                        Timeline for Use of Funds


            Funds may be used for                                                           Funds must be
             costs incurred from                                                        expended by December
             December 29, 2022                                                                31, 2026




                                                              Funds must be obligated
                                                               by December 31, 2024




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   Emergency Relief from Natural Disasters - Review


                    Key takeaways about the Natural Disaster
                                 eligible use:
                    1. Eligible uses
                    2. The two-step process for identifying an eligible use
                    3. Reminder that no pre-approval is required and
                       recipients may be able to engage in similar
                       activities in other existing eligible use categories
                       (ex. Revenue Loss)




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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AGENDA

Session Overview

Discussion of eligible uses
     Emergency Relief from Natural Disasters
     Surface Transportation projects
     Title I projects

Summary

Public Comment Period Overview

Q&A




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Natural Disasters       Surface Transportation           Title I                                                 16



      Statutory Requirements for Title I and Surface Transportation
      Projects

                    1                                                                 2

                                                                                      Requirements of Other
                        Cap on Use of Funds
                                                                                              Laws


                    3                                                                 4

                           Supplement, not                                                   Obligation and
                              Supplant                                                    Expenditure Deadline




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      Statutory Requirements for Title I and Surface Transportation
      Projects
  1                                                          Cap on Use of Funds

             • Recipients may only use the greater of 30% of their award and
               $10 million (not to exceed their total award) for Surface
               Transportation projects and Title I projects, taken together.




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      Statutory Requirements for Title I and Surface Transportation
      Projects
  2                                                  Requirements of Other Laws


             • Titles 23, 40, and 49 of the U.S. Code, and Title I of the Housing
               and Community Development Act of 1974 apply to the use of
               funds for Surface Transportation and Title I projects, as
               applicable, among other cross-referenced statutory
               requirements.




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      Statutory Requirements for Title I and Surface Transportation
      Projects
  3                                                    Supplement, not Supplant


             • Recipients using SLFRF funds for these uses must supplement,
               not supplant, other federal, state, territorial, Tribal, and local
               government funds (as applicable) that are otherwise available
               for these projects.




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Natural Disasters     Surface Transportation             Title I                                                    20



      Statutory Requirements for Title I and Surface Transportation
      Projects
  4                                             Obligation & Expenditure Deadline


          Funds may used for costs                                                     Most other eligible uses -
          incurred from December                                                      Funds must be expended by
                  29, 2022                                                               December 31, 2026




                                         Funds must be obligated                      Funds must be expended by
                                          by December 31, 2024                           September 30, 2026
                                                                                      3 months earlier than most
                                                                                             eligible uses


   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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AGENDA

Session Overview

Discussion of eligible uses
     Emergency Relief from Natural Disasters
     Surface Transportation projects
     Title I projects

Summary

Public Comment Period Overview

Q&A




U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters     Surface Transportation             Title I                      22



   Surface Transportation - Summary



                    In this section you will learn the following:


                    1. How to use funds for Surface Transportation
                       projects
                    2. Applicable statutory and regulatory requirements




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters       Surface Transportation           Title I                                                 23



    REMINDER: Statutory Requirements for Title I and Surface
    Transportation Projects

                    1                                                                 2

                                                                                      Requirements of Other
                        Cap on Use of Funds
                                                                                              Laws


                    3                                                                 4

                           Supplement, not                                                   Obligation and
                              Supplant                                                    Expenditure Deadline




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Natural Disasters     Surface Transportation             Title I                                         24



   Surface Transportation - Overview
      Recipients may use SLFRF funds for Surface Transportation projects, under the
      following pathways:


                       Pathway                                      Pathway              Pathway
                          11                                           22                   33

                                                                                       Satisfying non-
                                                                                        Federal share
                                                                   Surface
                      Surface                                                         requirements for
                                                               transportation
                  transportation                                                       certain surface
                                                                projects NOT
                projects receiving                                                     transportation
                                                              receiving funding
                funding from DOT                                                         projects, or
                                                                  from DOT
                                                                                       repaying TIFIA
                                                                                             loan


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   Surface Transportation - Overview

  1          Pathway One: Surface Transportation Projects Receiving Funding from the
                              Department of Transportation (DOT)

                                                                   Eligible Projects

      • Recipients may use funds for projects under 26 programs administered by DOT
        that currently receive funding from DOT or projects that will receive funding
        from DOT prior to December 31, 2024.
      • Recipients may:
              • Expand Existing DOT Projects
              • Cover Unexpected Costs of Existing DOT Projects
              • Fund Projects Not Currently Approved by DOT, but will be before 12/31/24
      • The Surface Transportation project must be subject to DOT’s oversight during the
        period that SLFRF funds are used for the project.


   PREDECISIONAL/INTERNAL ONLY


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   Surface Transportation - Overview

  1         Pathway One: Surface Transportation Projects Receiving Funding from DOT


                                                                   Requirements

      • Recipients must consult with DOT before using funds under Pathway One.
      • Recipients must comply with the requirements that would apply to the project as
        administered by DOT.
      • For some projects, SLFRF cannot be used to fund operating expenses. Preventive
        maintenance is not considered an operating expense.
      • For states - a project eligible under title 23 or that otherwise is subject to the
        requirements of title 23 must either demonstrate progress in achieving a state of
        good repair under 23 U.S.C. 119(e) or support the achievement of one or more
        performance targets under 23 U.S.C. 150.


   PREDECISIONAL/INTERNAL ONLY


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   Surface Transportation Projects Are Eligible Under These Programs
   within Pathway One
   ✓    Infra Grants                                                           ✓      Federal Lands Access Program (FLAP)
   ✓    National Highway Performance Program (NHPP)                            ✓      Rebuilding American Infrastructure with Sustainability and
                                                                                      Equity (RAISE) Grant Program
   ✓    Bridge Investment Program (BIP)
                                                                               ✓      Transportation Infrastructure Finance and Innovation Act
   ✓    Surface Transportation Block Grant Program (STBG)
                                                                                      (TIFIA)
   ✓    Highway Safety Improvement Program (HSIP)
                                                                               ✓      Urbanized Formula Grants
   ✓    Congestion Mitigation and Air Quality Improvement
                                                                               ✓      Fixed Guideway Capital Investment Grant
        Program (CMAQ)
                                                                               ✓      Formula Grants for Rural Areas
   ✓    Charging and Fueling Infrastructure Discretionary Grant
        Program (CFI Program)                                                  ✓      State of Good Repair Grants
   ✓    Territorial and Puerto Rico Highway Program                            ✓      Grants for Buses and Bus Facilities
   ✓    National Highway Freight Program (NHFP)                                ✓      National culvert removal, replacement, and restoration
                                                                                      grant program (Culvert AOP Program)
   ✓    Rural Surface Transportation Grant Program
                                                                               ✓      Bridge Replacement, Rehabilitation, Preservation,
   ✓    Carbon Reduction Program (CRP)
                                                                                      Protection, and Construction Program (Bridge Formula
   ✓    Promoting Resilient Operations for Transformative, Efficient,                 Program or BFP)
        and Cost-Saving Transportation (PROTECT)
                                                                               ✓      Activities to carry out metropolitan transportation planning
   ✓    Tribal Transportation Program (TTP)
                                                                               ✓      Projects that further the completion of a designated route
   ✓    Federal Lands Transportation Program (FLTP)                                   of the Appalachian Development Highway System (ADHS)

   PREDECISIONAL/INTERNAL ONLY


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   Surface Transportation - Overview

  2        Pathway Two: Using SLFRF for Surface Transportation Projects Not Receiving
                                      Funding from DOT
                         There are two ways to use SLFRF funds within Pathway Two:

                    Streamlined Framework                                              Non-Streamlined Framework
      • Recipients are not required to                                            • This pathway is for projects outside of
        obtain Treasury approval prior to                                           the streamlined framework
        using funds on Surface                                                    • Treasury will design a process for
        Transportation projects                                                     recipients seeking to fund these
      • NEPA environmental reviews are                                              projects
        not required                                                              • Recipients must satisfy NEPA
                                                                                    environmental review requirements’
                                                                                  • Treasury will design a process for
                                                                                    recipients seeking to fund these
                                                                                    projects; Treasury approval will be
                                                                                    required
   PREDECISIONAL/INTERNAL ONLY


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   Surface Transportation - Overview

  2        Pathway Two: Using SLFRF for Surface Transportation Projects Not Receiving
                                      Funding from DOT

                                          Eligible Projects: Streamlined Framework

      • Qualifies as a project under the RAISE program and satisfies the following
        criteria:
              • No more than $10 million in SLFRF is contributed to a project
              • The entire project scope is limited to the actions or activities deemed by
                DOT as meeting the criteria for NEPA Categorical Exclusion under 23 CFR
                771.116(c)(1)-(22), 771.117(c)(1)-(30), and 771.118(c)(1)-(16) and does not
                involve “unusual circumstances”




       The 2023 RAISE Grants Notice of Funding Opportunity can be viewed at
       https://www.transportation.gov/RAISEgrants/raise-nofo
   PREDECISIONAL/INTERNAL ONLY


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Natural Disasters     Surface Transportation             Title I                            30



   Surface Transportation - Overview

  2        Pathway Two: Using SLFRF for Surface Transportation Projects Not Receiving
                                      Funding from DOT

                                            Requirements: Streamlined Framework

      • Recipients generally must comply with the requirements of titles 23, 40, and 49
        as described in the interim final rule and DOT’s implementing regulations.
      • For some programs, SLFRF cannot be used to fund operating expenses.
        Preventive maintenance is not considered an operating expense.
      • For states –a project eligible under title 23 or that otherwise is subject to the
        requirements of title 23 must either demonstrate progress in achieving a state of
        good repair under 23 U.S.C. 119(e) or support the achievement of one or more
        performance targets under 23 U.S.C. 150.




   PREDECISIONAL/INTERNAL ONLY


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Natural Disasters     Surface Transportation             Title I                                        31



   Surface Transportation - Overview

  2        Pathway Two: Using SLFRF for Surface Transportation Projects Not Receiving
                                      Funding from DOT

                                                     Non-Streamlined Framework

      •    If recipients wish to pursue a project within Pathway Two, but outside of the streamlined
           approach, they may submit a notice of intent to Treasury.
      •    Treasury will evaluate the projects included in these notices of intent, along with
           comments to this IFR, to design and implement the framework for approving these types
           of projects.
      •    Projects submitted outside the streamlined framework via this process will be subject to
           Treasury approval.
      •    The notice of intent must be submitted to NOI-SLFRF@Treasury.gov and is due 30 calendar
           days after the end of the IFR comment period.
      •    For an example of what an ideal notice of intent would include, please see the 2023 IFR
           section titled “Pathway Two: Notice of Intent for Projects Outside Streamlined Framework.”


   PREDECISIONAL/INTERNAL ONLY


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Natural Disasters     Surface Transportation             Title I                          32



   Surface Transportation - Overview

  3         Pathway Three: Using SLFRF to Satisfy Non-Federal Share Requirements for
                                Certain Transportation Projects

                                                                   Eligible Projects

      • Can be used to repay a TIFIA loan
      • Can be used to satisfy non-federal cost share requirements under these four DOT
        programs:
              • INFRA Grants
              • Fixed Guideway Capital Investment Grants
              • Mega Grants
              • Projects eligible for credit assistance under the TIFIA program




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Natural Disasters     Surface Transportation             Title I                        33



   Surface Transportation - Overview

  3         Pathway Three: Using SLFRF to Satisfy Non-Federal Share Requirements for
                    Certain Transportation Projects or to Repay a TIFIA Loan

                                                                   Requirements

      • Recipients must consult with DOT prior to using funds under Pathway Three.
      • As with any use of funds to meet non-federal cost share requirements, the
        requirements associated with the project, as administered by DOT, continue to
        apply unless provided otherwise by DOT.




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Natural Disasters       Surface Transportation           Title I                                                 34



    REMINDER: Statutory Requirements for Title I and Surface
    Transportation Projects

                    1                                                                 2

                                                                                      Requirements of Other
                        Cap on Use of Funds
                                                                                              Laws


                    3                                                                 4

                           Supplement, not                                                   Obligation and
                              Supplant                                                    Expenditure Deadline




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters     Surface Transportation             Title I                                                    35



      Reminder: Statutory Requirements for Title I and Surface
      Transportation Projects
                                                Obligation & Expenditure Deadline


            Funds may be used for                                                      Most other eligible uses -
             costs incurred from                                                      Funds must be expended by
             December 29, 2022                                                           December 31, 2026




                                         Funds must be obligated                      Funds must be expended by
                                          by December 31, 2024                           September 30, 2026
                                                                                      3 months earlier than most
                                                                                             eligible uses


   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters     Surface Transportation             Title I                                      36



   “Supplement, Not Supplant” Example
   As a reminder, recipients may not:
   •    De-obligate funds and replace those previously obligated funds with SLFRF funds under this
        eligible use category or
   •    Use SLFRF to replace federal or non-federal funds identified in a federal commitment, such
        as an award agreement.


   Consider a municipal road project totaling $30 million:
   •    The recipient has not yet entered into an award agreement with DOT but is expecting that
        federal funds from DOT will make up $25 million of the project and plan on allocating local
        sources to satisfy the other $5 million required to satisfy cost-share requirements.
   •    Since the recipient has not yet entered into an award agreement with DOT, the recipient
        may choose to alter the funding mixture to include SLFRF funding.
   •    If the recipient had entered into an award agreement with DOT, then the funds for the
        project may not be replaced with SLFRF funds.
        • In this scenario, recipients would be able to use SLFRF funds to expand the scope of the
             project or to cover unexpected costs, after consulting with DOT.




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters     Surface Transportation             Title I                       37



   REMINDER: Other Resources

   • For more information, please see the following materials:
         • The 2023 Interim Final Rule
         • Overview of the 2023 Interim Final Rule
   • Reminder – revenue loss funds may be used to provide government services,
     which may include activities that are eligible under the Surface Transportation
     eligible use category




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters     Surface Transportation             Title I                      38



   Surface Transportation - Review



                    Key takeaways about the Surface Transportation eligible use:




                    1. Reviewed the three pathways for transportation
                       projects
                    2. Highlighted applicable requirements
                    3. Reviewed key difference from existing eligible uses




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
                                                                                   39



AGENDA

Session Overview

Discussion of eligible uses
     Emergency Relief from Natural Disasters
     Surface Transportation projects
     Title I projects

Summary

Public Comment Period Overview

Q&A




U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters        Surface Transportation          Title I                             40



   Title I - Summary



                    In this section you will learn the following:
                    1.     How to use funds for Title I projects, which are those eligible
                           in the Community Development Block Grant (CDBG) or Indian
                           Community Development Block Grant (ICDBG) programs
                           available through the Department of Housing and Urban
                           Development (HUD)
                    2.     Program administration
                    3.     Key differences from existing eligible uses and limitations on
                           use




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   Title I - Overview
               Eligible Uses: Illustrative List of Eligible Activities under CDBG and ICDBG
     Recipients may undertake projects under this eligible use that are eligible activities under the CDBG and ICDBG programs, as
     outlined in section 105(a) of Title I of the Housing and Community Development Act of 1974

     ✓    Acquisition of certain real property for a public purpose,              ✓   Rehabilitation and reconstruction of housing, conversion
          subject to certain limitations                                              of structures to housing, or construction of certain
     ✓    Disposition of certain property, subject to certain                         housing
          limitations and rules                                                   ✓   Homeownership assistance
     ✓    Acquisition, construction, reconstruction, rehabilitation,              ✓   Technical assistance to entities to increase capacity to
          or installation of public facilities and improvements,                      carry out CDBG-eligible projects
          clearance and remediation activities                                    ✓   Assistance to certain institutions of higher education to
     ✓    Public services, subject to the limitation as discussed                     carry out eligible activities
     ✓    Interim assistance where immediate action is required                   ✓   Administration activities including general management,
          for certain activities such as street repair, and costs to                  oversight, and coordination costs, fair housing activities,
          complete an urban renewal project under Title I                             indirect costs, and submission of applications for federal
     ✓    Relocation payments for relocated families, businesses,                     programs
          nonprofit organizations, and farm operations, under                     ✓   Planning activities including the development of plans
          certain conditions                                                          and studies, policy planning, and management and
     ✓    Payments to housing owners for loss of certain rental                       capacity building activities; and
          income                                                                  ✓   Satisfying the non-federal share requirements of a
     ✓    Certain housing services                                                    federal financial assistance program in support of
                                                                                      activities that would be eligible under the CDBG and
     ✓    Acquisition, construction, reconstruction, rehabilitation,                  ICDBG programs.
          or installation of privately owned utilities

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Natural Disasters     Surface Transportation             Title I                                                                                   42



   Title I - Overview
                                                         Applicable Requirements
       Recipients using SLFRF funds for Title I projects generally must comply with Title I requirements
                   and the associated regulations except as provided otherwise in the IFR

                          For all recipients                                               For non-Tribal governments only
     • The Primary Objective: Direct at least 70% of SLFRF                            • CDBG National Objectives: Each project undertaken
       funds used for Title I projects to projects that                                 under the Title I eligible use must satisfy at least one
       principally benefit low- and moderate-income                                     CDBG National Objective.
       persons.                                                                       • Labor Standards: Prevailing wage rate requirements in
     • Public Services Cap: Not more than 15% of SLFRF                                  accordance with the Davis-Bacon Act and other labor
       funds used for Title I projects may be spent under the                           standards applied by HUD to construction work under
       “public services” category of eligible activities.                               Title I apply.
     • Planning and Administrative Costs Cap: Not more
       than 20% of SLFRF funds used for Title I projects may
       be spent on planning and administrative costs.
     • BEAD Program Requirements: requirements of the
       Broadband Equity, Access, and Deployment (BEAD)
       program, as outlined in section 60102 of the
       Infrastructure Investment and Jobs Act, apply.
     • Environmental Review Requirements: Satisfy NEPA
       environmental review requirements



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Natural Disasters     Surface Transportation             Title I                            43



   Title I - Overview

                                                      Pre-Approval Requirements

         • Recipients generally must comply with environmental review requirements
           in HUD statutes and regulations, submit a project-level certification to
           Treasury, and receive Treasury approval prior to using SLFRF funds for Title I
           projects.
         • Recipients are not required to submit certifications or obtain Treasury
           approval for Title I projects that satisfy either of the criteria below.
           Additionally, they may begin using SLFRF funds for the project right away:
                    • Exempt Activities: as contemplated by 24 CFR 58.34(a).
                    • Categorically Excluded Activities Not Subject to 24 CFR 58.5, as
                      contemplated by 24 CFR 58.35(b), provided that the circumstances
                      described in 24 CFR 58.35(c) are not present.




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters       Surface Transportation           Title I                                                 44



      REMINDER: Statutory Requirements for Title I and Surface
      Transportation Projects

                    1                                                                 2

                                                                                      Requirements of Other
                        Cap on Use of Funds
                                                                                              Laws


                    3                                                                 4

                           Supplement, not                                                   Obligation and
                              Supplant                                                    Expenditure Deadline




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters     Surface Transportation             Title I                                       45



   “Supplement, Not Supplant” Example
   As a reminder, recipients may not:
   •    De-obligate funds and replace those previously obligated funds with SLFRF funds under this
        eligible use category or
   •    Use SLFRF to replace federal or non-federal funds identified in a federal commitment, such
        as an award agreement.


   Consider an ongoing project for the construction of a community garden:
   •    If a recipient had already obligated non-SLFRF funds to the project, the recipient could not
        terminate or renegotiate existing contracts for the construction of that garden in order to
        use SLFRF funds to replace the previously obligated funds.
   •    SLFRF funds could be used to:
         •    Provide additional resources to that project / expand the scope of the project
         •    Undertake a separate, eligible project (e.g., another community garden project)




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters     Surface Transportation             Title I                                                    46



      Reminder: Statutory Requirements for Title I and Surface
      Transportation Projects
                                                Obligation & Expenditure Deadline


            Funds may be used for                                                      Most other eligible uses -
             costs incurred from                                                      Funds must be expended by
             December 29, 2022                                                           December 31, 2026




                                         Funds must be obligated                      Funds must be expended by
                                          by December 31, 2024                           September 30, 2026
                                                                                      3 months earlier than most
                                                                                             eligible uses


   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters     Surface Transportation             Title I                            47



   REMINDER: Other Resources

   • For more information, please see the following materials:
         • The 2023 Interim Final Rule
         • Overview of the 2023 Interim Final Rule
   • Reminder – recipients are already able to undertake many eligible Title I activities
     under revenue loss and the public health and negative economic impacts eligible
     use.




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters     Surface Transportation             Title I                      48



   Title I - Review



                Key takeaways about the Title I eligible use:


                    1. Reviewed how to use funds for projects eligible
                       under the CDBG program
                    2. Highlighted applicable requirements
                    3. Reviewed key difference from existing eligible uses




   U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
                                                                                   49



AGENDA

Session Overview

Discussion of eligible uses
     Emergency Relief from Natural Disasters
     Surface Transportation projects
     Title I projects

Summary

Public Comment Period Overview

Q&A




U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
                                                                                   50



AGENDA

Session Overview

Discussion of eligible uses
     Emergency Relief from Natural Disasters
     Surface Transportation projects
     Title I projects

Summary

Public Comment Period Overview

Q&A




U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
                                                                                            51



Overview of Public Comment Period Process

Please submit comments electronically through the Federal eRulemaking Portal:
http://www.regulations.gov

Comments also can be mailed to:
        Office of Recovery Programs
        Department of the Treasury
        1500 Pennsylvania Avenue
        Washington, DC 20220

All comments should be captioned “Coronavirus State and Local Fiscal Recovery Funds 2023
Interim Final Rule Comments.” Please include your:
      •    Name
      •    Organization affiliation
      •    Address
      •    Email address
      •    Telephone number
Outside of the public comment process, Tribal governments may provide feedback during the
upcoming Tribal consultation on the SLFRF IFR on September 12, 2023 at 1:00 PM ET.



U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
                                                                                   52



AGENDA

Session Overview

Discussion of eligible uses
     Emergency Relief from Natural Disasters
     Surface Transportation projects
     Title I projects

Summary

Public Comment Period Overview

Q&A




U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
                                                                                                                                   53




                                                                                   For More Information about SLFRF, including
                                                                                   a link to the 2023 Interim Final Rule:
                                                                                   Please visit Treasury’s State & Local website
                                                                                   at www.treasury.gov/SLFRP
Thank you.
                                                                                   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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