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.
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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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
3
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.
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
4
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
Natural Disasters Surface Transportation Title I 6
Emergency Relief from Natural Disasters - Overview
Two-Step Process For Designing An Eligible Use
1 2
Identify Natural Disaster Identify Emergency Relief
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 7
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.
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 8
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 9
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 10
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 11
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 12
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 13
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 14
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
15
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 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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 17
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.
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 18
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.
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 19
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.
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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
21
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 25
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 26
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 27
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 28
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 29
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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.
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
Natural Disasters Surface Transportation Title I 41
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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
U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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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