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Department Of The Treasury Using Slfrf Funds To Replace Lost Revenue And Provide Governmen
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U.S. DEPARTMENT
OF THE TREASURY
State and Local Fiscal Recovery Funds
Quick Reference Guide:
Using SLFRF Funds to Replace Lost Revenue
and Provide Government Services
What can my community use SLFRF funds for How much of my community’s funds can be used
under revenue loss? for government services under revenue loss?
Under the revenue loss eligible use category, funds Under the standard allowance, recipients may claim up
can be used for any service traditionally provided by to $10 million in revenue loss, up to the amount of their
a government, unless Treasury has stated otherwise. SLFRF award, and spend those funds on government
These government services must be reported as services. Recipients may also calculate their revenue
projects to Treasury, as discussed below. loss (see here for more information).
All funds to replace lost revenue and provide How does my community report the use of
government services must been obligated by December revenue loss funds to Treasury?
31, 2024, and must be expended by December 31,
Recipients using SLFRF funds under the revenue
2026. Recipients are considered to have satisfied the
loss eligible use category must report two set of
obligation requirement for any SLFRF funds that were
information. Please see further information about
expended by December 31, 2024.
reporting below.
Recipients should report:
STEP 1
The revenue loss you
are claiming, including
whether claiming up to
$10 million in revenue
loss under the standard
allowance or calculating
revenue loss.
State and Local Fiscal Recovery Funds
STEP 2 This reporting will include these fields.
One or more projects
under Expenditure
Category 6. Each
project must include
the amount of SLFRF
funds budgeted (if
applicable), obligated,
and expended under the
revenue loss eligible use
category. Each project < Placeholder Image >
must also include a
project description
that summarizes the
project in sufficient
detail to provide an
understanding of the If you have not reported a revenue loss project using this interface, you have not reported obligating or
major activities that expending those funds to Treasury.
will occur.
Please see this video for a step-by-step reporting explanation.
When will my community submit this information to Treasury?
Quarterly reporters submitted their report covering obligations to Treasury between January 1 and January 31, 2025. Annual
reporters will submit their next report to Treasury between April 1 and April 30, 2025. This report will include all obligations
incurred through December 31, 2024. Any SLFRF funds that were not obligated by the deadline must be returned to Treasury.
The report is cumulative. If an annual reporter has obligations or expenditures from an earlier time that were not correctly
reported in an earlier report, the recipient may report that obligation or expenditure in the report due April 30.
***
State and Local Fiscal Recovery Funds
Common Issues Reporting Revenue Loss Projects
My government claimed our entire SLFRF award under the option to claim up to $10 million in Revenue Loss under
the standard allowance. Have we successfully reported to Treasury that we have satisfied the obligation deadline?
No. SLFRF recipients electing the standard allowance must also obligate those funds for project(s) and report those
project(s) under Expenditure Category 6 (“EC 6”) – Revenue Loss. Projects entered under EC 6 are required have a
sufficient project description and a dollar amount entered in the obligation field. If the funds are not reported as
obligated, the funds must be returned to Treasury.
We transferred our revenue loss funds to our government’s General Fund. Does that satisfy the obligation
requirement?
No, not in itself. Moving SLFRF funds to a general fund as Revenue Loss but not further establishing an obligation
with those funds is insufficient to satisfy the obligation requirement. An adopted budget, appropriation, executive
order, resolution, or intent to enter a contract also does not establish an obligation.
There are several ways recipients could have satisfied the obligation requirement by December 31, 2024. Please see
section 17 of the SLFRF FAQs for more information, including FAQ 17.15.
What are some common mistakes Treasury sees when recipients are using funds for Revenue Loss?
The most common mistake recipients make is claiming funds for Revenue Loss without reporting corresponding
projects in Expenditure Category 6 (“EC 6”). As discussed above, recipients must enter project(s) into EC 6 and enter
the amount obligated for that project.
For example: Cityville, USA received an SLFRF award of $500,000 and wishes to use the entire amount under the
Revenue Loss eligible use category to provide government services. Cityville elected the standard allowance, which
allows Cityville to use up to $10 million—their entire award—under that eligible use category. However, Cityville
has not entered any projects under EC 6. It is not possible to report the obligation of Revenue Loss funds without
entering at least one project under EC 6 and entering an obligation amount.
My government wants to use our full SLFRF award under the Revenue Loss eligible use category and
has claimed the standard allowance. However, the Treasury Award Management System still shows my
government’s funds as unobligated. Why is that? Does it need to be fixed?
The most likely reason you are seeing the funds listed as “unobligated” is that your government has not yet entered
a corresponding project(s) under the Revenue Loss eligible use category (EC 6). Annual reporters can resolve this
by adding project(s) under EC 6 in the annual report due April 30, 2025, and entering the amount obligated for the
project(s) in the obligation field along with a sufficient project description. The system will then update to show
your current obligations.
Recipients must return any amounts to Treasury that were not properly obligated by December 31, 2024.
State and Local Fiscal Recovery Funds
Is there a checklist that I can use to ensure that my government is reporting Revenue Loss projects correctly?
The following checklist may help your government when reporting funds you wish to use under the Revenue Loss
eligible use category. If you can answer “yes” to each question, then the funds you are using for Revenue Loss are
likely to be properly obligated.
☐ Has your government elected to take the standard allowance of $10 million OR entered in a manual calculation
for Revenue Loss?
☐ If selecting the standard allowance, has your government indicated how much of your award, up to $10 million,
it wishes to utilize under the Revenue Loss eligible use category?
☐ In the reporting portal, has your government entered projects under Expenditure Category (EC) 6?
☐ Has your government obligated SLFRF funds as described in FAQ 17.15?
☐ Has your government reported obligating SLFRF funds for each of its EC 6 projects in the reporting portal?
☐ Has your government entered a sufficient description of each project under EC 6? Please see page 52-53 of the
latest Project and Expenditure Report User Guide located on the SLFRF Reporting and Compliance page for
more information.
When can I update my report to fix a Revenue Loss reporting issue?
Annual reporters may update their reports in the Project and Expenditure Report due April 30, 2025. This will be the
final chance for annual reporters to report obligations made by the December 31, 2024 deadline. Quarterly reporters
were required to submit final obligation data by January 31, 2025.
My government is using Revenue Loss funds for a water or sewer infrastructure project and is reporting it under
Expenditure Category (EC) 5 – Infrastructure. Is that okay?
If a project is an eligible use under one of the Water and Sewer eligible use sub-categories, a recipient may choose to
carry out and report the project under EC 5. However, if the recipient does so, Treasury will not consider the project
to be under the Revenue Loss eligible use category. Accordingly, the project will be subject to the more detailed
requirements that apply to that eligible use category, and the recipient will have not be considered to have used any
portion of its Revenue Loss funds for that project.
If a recipient would like a project to be treated as a Revenue Loss project, it must be reported under EC 6. Note
also that every use that is eligible under other eligible use categories is also eligible under the Revenue Loss
eligible use category.
Does my government need to obligate SLFRF funds used under the Revenue Loss eligible use category before
the obligation deadline?
Yes. All SLFRF funds under any eligible use category are subject to the obligation deadline. Please see FAQ 17.15 for
more information.
Is a video tutorial available to walk us through how to report Revenue Loss?
Yes. Please see Treasury’s SLFRF Explainer on how to report obligations under the Revenue Loss eligible use category.
If you have additional questions on reporting obligations, you may find this video helpful: SLFRF Portal
Demonstration: How To Report Obligations.
State and Local Fiscal Recovery Funds