Final Rule: Coronavirus State & Local Fiscal Recovery Funds for Tribal Governments (Webinar, January 2022)
Summary
Slides for a U.S. Department of the Treasury webinar dated January 2022, "An Introduction to the Final Rule: Coronavirus State & Local Fiscal Recovery Funds for Tribal Governments." The slides state the Fiscal Recovery Funds deliver $350 billion for Tribal, state, local and territorial governments, including $20 billion allocated to Tribal governments with 99.9% of funds available disbursed. The slides note that the final rule takes effect on April 1, 2022, that the interim final rule remains in effect until then, and that Treasury does not pre-approve specific projects. The webinar reviews the four key eligible use categories and reporting requirements, including quarterly reports for Tribal governments that received more than $30 million.
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
Cite this document
“Final Rule: Coronavirus State & Local Fiscal Recovery Funds for Tribal Governments (Webinar, January 2022).”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/treas-slfrf-final-rule-webinar-tribal-governments-3102117a92/
, SHA-256 94ec21c22e39023aed6c85a247cc641c9cfed4c59252da2b7706bda57e15b55c.Full text
AN INTRODUCTION TO THE
Final Rule: Coronavirus State & Local
Fiscal Recovery Funds
FOR TRIBAL GOVERNMENTS
January 2022
2
About this Webinar
The U.S. Department of the Treasury is providing this webinar, the Fiscal Recovery Funds contact
channels, and other resources to Tribal, state, and local governments for informational purposes.
The descriptions provided in this document are non-exhaustive, do not describe all terms and
conditions associated with the use of Fiscal Recovery Funds, and do not describe all requirements
that may apply to this funding.
Any award from the Fiscal Recovery Funds will be subject to the terms and conditions of the
agreement entered into by Treasury and the respective jurisdiction, which incorporate the
provisions of the Final Rule and guidance that implements this program.
Recipients should note that Treasury does not pre-approve specific projects under the Fiscal
Recovery Funds; each recipient should review the final rule to make its own assessment of
whether its intended projects meets the eligibility criteria in the rule.
U.S. Department of the Treasury
3
Overview: Key Objectives of This Funding
The Fiscal Recovery Funds deliver $350 billion for Tribal, state, local, and territorial
governments to respond to the COVID-19 emergency and lead a strong, resilient, and
equitable recovery.
Key objectives of this funding:
• Fight the pandemic and support families and businesses struggling with its public health
and economic impacts
• Maintain vital public services, even amid declines in revenue resulting from the crisis
• Build a strong, resilient, and equitable recovery by making investments that support long-
term growth and opportunity
U.S. Department of the Treasury
4
Overview: Early Program Implementation
The Fiscal Recovery Funds deliver $20 billion to Tribal governments to respond to the COVID-19
emergency and lead a strong, resilient, and equitable recovery.
Early program implementation:
• $20 billion allocated to Tribal governments, with 99.9% of funds available disbursed
• Recipients have used SLFRF funds to meet immediate pandemic needs and make investments
in long-term growth and opportunity for their communities, with examples including:
– Supporting the public health response: testing and vaccination clinics, vaccination
incentive programs, distribution of PPE
– Strengthening the economic recovery: investments in small business development,
workforce development, and creation and preservation of affordable housing
– Making longer term investments: expanding high-speed broadband access to unserved
and underserved communities
• Treasury has carefully considered feedback from Tribal governments, including 5 Tribal
consultations held in March and April of 2021, which included attendance from White House
and Interior officials, with over 1,400 total participants and over 150 written comments
U.S. Department of the Treasury
5
Important Note: Projects Already Underway in FRF Program
• The final rule takes effect on April 1, 2022
• If a use of funds complies with the final rule, Treasury will not take action to enforce the
interim final rule, regardless of when the funds were used (e.g., if the IFR would not permit
that use of funds); recipients can take advantage of the expanded flexibilities in the final rule
now
• Until April 1, the interim final rule remains in effect; funds used consistently with the IFR while
it is in effect are in compliance with the FRF program
For more, please see the Statement Regarding Compliance with the
Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule
U.S. Department of the Treasury
6
Reminder: Four Key Eligible Use Categories
The American Rescue Plan provides four major categories of eligible uses to tackle the broad range of
public health and economic challenges caused or exacerbated by the COVID-19 emergency.
• Providing government services up to the amount of revenue
Public Sector
1 Revenues
loss due to the pandemic
Public Health & • Responding to COVID-19’s public health impact, along with its
2 Economic Response economic harms
Premium Pay for • Offering additional support to workers who bear the greatest
3 Essential Workers health risks because of their service in critical sectors
Water, Sewer & • Providing funding to critical water and sewer projects, along
4 Broadband with high-speed broadband infrastructure
Infrastructure
Recipients have requested greater flexibility, simplicity & clarity in the final rule
to respond to new pandemic needs and make transformative investments
U.S. Department of the Treasury
7
Approach to the Final Rule
Treasury’s final rule provides greater flexibility and simplicity for recipients to turn the tide
on the pandemic, maintain vital public services amid revenue shortfalls, and build a strong,
resilient, and equitable recovery.
KEY NEW FEATURES IN THE FINAL RULE
• Major simplification for thousands of recipients through the
Public Sector
1 Revenues
$10 million revenue loss standard allowance
• Providing a broader set of eligible uses for impacted and
Public Health & disproportionately impacted populations
2 Economic Response • Clarifying that reasonably proportional capital expenditures may be
allowable (e.g., affordable housing, hospitals)
Premium Pay for • Streamlining options to provide premium pay by broadening
the share of essential workers who can receive premium pay
3 Essential
without a written justification
Workers
Water, Sewer & • Expanding water and sewer projects that are eligible
• Broadening eligible broadband investments to allow recipients to
4 Broadband
address access, affordability & reliability challenges
Infrastructure
U.S. Department of the Treasury
8
Public Sector
1
Replace Public Sector Revenue Loss Revenues
Recipients may use these funds to provide government services, up to the amount of
revenue loss experienced due to the COVID-19 public health emergency.
1• Determine revenue loss, using one of two available options:
–
A Elect “standard allowance” of up to $10 million to spend on government services
through the life of the program, which greatly simplifies the program for small localities NEW
–
B Calculate actual revenue loss according to Treasury formula
» Calculate revenue loss either on a calendar or fiscal year basis NEW
» Must adjust actual revenue totals for the effect of tax cuts and tax increases that are
adopted after January 6, 2022, to more accurately reflect revenue loss due to the
pandemic NEW
2• Spend on government services up to the revenue loss amount
– Government services generally include any service traditionally provided by a
government unless Treasury has stated otherwise, such as:
✓ Construction of schools and ✓ Environmental remediation
hospitals ✓ Provision of police, fire, and other
✓ Road building and maintenance, public safety services (including
and other infrastructure purchase of fire trucks and police
✓ Health and other services vehicles)
U.S. Department of the Treasury
9
Public Health and
2
Respond to COVID-19’s Public Health and Economic Impacts Economic Response
Recipients may use these funds to respond to a broad range of public health and economic
impacts of the pandemic for households, communities, businesses, and the public sector.
• Public health impacts
• Negative economic impacts, including assistance to:
Eligible Use ✓ Households ✓ Impacted industries
1 Categories ✓ Small businesses ✓ Public sector capacity and
✓ Non-profits workforce
• To identify eligible uses of funds, recipients should generally:
1. Identify a public health or economic impact to an individual or
a class
2. Design a related and reasonably proportional response (e.g., a
program, service, or capital expenditure)
Determining
2 Eligible Uses • For convenience, Treasury has provided a non-exhaustive list of
eligible uses and populations presumed eligible to receive these
services
• Recipients may identify additional eligible uses beyond those
enumerated by Treasury based on the standards provided in the rule
U.S. Department of the Treasury
10
Public Health and
2
Support the Public Health Response Economic Response
Recipients may use these funds to support their COVID-19 public health response.
• A very broad range of services and programming that are
COVID-19 Mitigation needed to contain COVID-19, including vaccination and testing
1 & Containment
programs and other COVID mitigation tactics
• May include certain capital expenditures, such as medical
facilities generally dedicated to COVID-19 treatment & mitigation
• Expenses to households, medical providers, or others that
incurred medical costs due to the pandemic
2 Medical Expenses
• Includes unreimbursed expenses for COVID-19 testing or
treatment & emergency medical response expenses
• A broad range of prevention, treatment, harm reduction, and
Behavioral recovery services that may be needed to meet mental health,
3 Healthcare
substance use, and other behavioral health needs
• May include certain capital expenditures, such as behavioral
health facilities & equipment
Preventing & • Responses to communities that experienced an increase in
violence, particularly gun violence
4 Responding
• Includes community violence intervention programs &
to Violence enforcement efforts to reduce gun violence
U.S. Department of the Treasury
11
Public Health and
2
Provide Assistance to Households Economic Response
Recipients may use these funds to respond to the negative economic impacts of the
COVID-19 public health emergency on households and communities.
The final rule presumes that all households receiving services from Tribal governments are
disproportionately impacted by the pandemic and eligible for all responsive services on this page
Disproportionately Impacted
Impacted Households
Households
Over a dozen eligible uses, including: Many additional eligible uses, including:
✓ Food assistance ✓ Financial services for ✓ Addressing health ✓ Addressing educational
unbanked and disparities: e.g., disparities: e.g., enhanced
✓ Re-employment and underbanked NEW community health funding to high-poverty
job training workers, lead schools & educational
✓ Affordable housing remediation, health facilities
✓ Rent, mortgage, or development and facilities
utility assistance & permanent supportive ✓ Improvements to
Internet subsidies housing ✓ Investments in vacant and abandoned
neighborhoods to property NEW
✓ Cash assistance ✓ Childcare, early promote health outcomes
learning, and addressing
✓ Health insurance NEW
learning loss for K-12
coverage expansion and
students
paid sick & family leave
U.S. Department of the Treasury
12
Public Health and
2
Provide Assistance to Small Businesses Economic Response
Recipients may use these funds to respond to the negative economic impacts of the
COVID-19 public health emergency on small businesses.
Disproportionately Impacted
Impacted Small Businesses
Small Businesses
✓ To assess which small businesses were ✓ SB presumed disproportionately impacted:
impacted, recipients may consider:
✓ Operating in QCTs
✓ Decreased revenue or gross receipts
✓ Operated by Tribal governments or on
✓ Financial insecurity Tribal lands
✓ Increased costs NEW ✓ Operating in the U.S. territories NEW
✓ And more
✓ Eligible uses include: NEW
✓ Eligible uses include:
✓ Rehabilitation of commercial properties,
✓ Loans or grants to mitigate financial storefront & façade improvements
hardship, such as by supporting payroll
and benefits ✓ Technical assistance, business incubators
& grants for start-up or expansions
✓ Technical assistance, counseling or
other services to support business ✓ Support for microbusinesses (e.g.,
planning childcare, transportation)
U.S. Department of the Treasury
13
Public Health and
2
Provide Assistance to Non-Profits Economic Response
Recipients may use these funds to respond to the negative economic impacts of the
COVID-19 public health emergency on non-profits.
Disproportionately Impacted
Impacted Non-Profits
Non-Profits
✓ To assess which nonprofits were impacted, ✓ Non-profits presumed disproportionately
recipients may consider: impacted:
✓ Decreased revenue (e.g., lower donations ✓ Operating in QCTs
or fees)
✓ Operated by Tribal governments or on
✓ Financial insecurity Tribal lands
✓ Increased costs (e.g., uncompensated ✓ Operating in the U.S. territories NEW
increases in service need) NEW
✓ And more ✓ Eligible uses include:
✓ Eligible uses include : ✓ Responses that are related and
reasonably proportional to addressing
✓ Loans or grants to mitigate financial disparities that led to disproportionate
hardship impacts
✓ Technical or in-kind assistance or other
services to mitigate negative economic
impact
U.S. Department of the Treasury
14
Public Health and
2
Provide Aid to Impacted Industries Economic Response
Recipients may use these funds to provide aid to impacted industries.
1• Designating an impacted industry
– If industry is in the travel, tourism, or hospitality sectors (including Tribal development
districts), the industry is impacted.
– If industry is outside the sectors above, the industry is impacted if it either:
» Experienced at least 8 percent employment loss from pre-pandemic levels, or NEW
» Is experiencing comparable or worse economic impacts as the national travel,
tourism, and hospitality sectors as of the date of the Final Rule and the impacts
resulted from the COVID-19 public health emergency
2• Provide eligible aid to the impacted industry
– Many eligible uses, including:
✓ Aid to mitigate financial hardship, ✓ Technical assistance, counseling or
such as supporting payroll costs other services to support business
✓ COVID-19 mitigation and infection planning
prevention measures
– Aid limited to entities operating prior to the pandemic and affected by required
closures and other efforts to contain the pandemic
U.S. Department of the Treasury
15
Public Health and
2
Restore and Bolster Public Sector Capacity Economic Response
Recipients may use these funds to restore and bolster public sector capacity, which
supports governments’ ability to deliver critical COVID-19 services.
1• Public safety, public health, and human services staff
– Payroll and covered benefits for public safety, public health, health care, human services and
similar employees of a recipient government through the period of performance
– Limited to the portion of the employee’s time spent responding to COVID-19, though public
health and safety staff primarily dedicated to COVID-19 response may be fully covered;
recipients can use reasonable estimates to determine share of employee time
2• Government employment & rehiring public sector staff
✓ Restoring employment by hiring up to ✓ Maintaining current compensation
7.5% above pre-pandemic baseline levels to prevent layoffs NEW
✓ Funding for employees who ✓ Worker retention incentives, including
experienced pay reductions or were reasonable increases in compensation NEW
furloughed NEW
3• Effective service delivery
✓ Supporting use of evidence, program ✓ Address administrative needs caused or
evaluation, data, and outreach exacerbated by the pandemic (e.g.,
✓ Providing administrative expenses for backlogs from pandemic shutdowns,
administration of programs that adapting government operations to the
respond to COVID-19 pandemic)
U.S. Department of the Treasury
16
Public Health and
2
Invest in Capital Expenditures Economic Response
The final rule provides clarity for recipients to use FRF funds to invest in capital
expenditures as part of their public health or economic response.
1• Overall eligibility requirements
− Capital expenditures subject to same Tribal governments are exempt from the
eligibility standard as other uses: must be requirement to complete a written
“related and reasonably proportional” to justification for capital expenditures.
addressing a pandemic impact
2 Presumptions for capital expenditures
Capital projects presumed eligible, provided Capital projects generally presumed to
the above requirement is met: be ineligible:
✓ Testing labs and equipment × Construction of new correctional
✓ Emergency operations center & facilities as a response to an
equipment increase in rate of crime
✓ Affordable housing × Construction of new congregate
✓ Childcare facilities facilities to decrease spread of
✓ For Disproportionately Impacted COVID-19 in facility
communities, including Tribal: × Construction of convention centers,
• Schools stadiums, or other large projects for
• Primary care health clinics and general economic development or
hospitals aid to impacted industries
U.S. Department of the Treasury
17
Public Health and
2
Invest in Eligible Uses Beyond Those Enumerated Economic Response
Recipients may use these funds to invest in eligible uses beyond those specifically
listed as eligible by Treasury.
1 2
Step: Identify COVID-19 public health or Design a response to address the
economic impact identified impact
Analysis: • Can identify impact to a specific • Response should be related and
household, business or non- reasonably proportional to the
profit – or to a class (e.g., group) harm
• Can also identify • Response should also be
disproportionate impacts, or reasonably designed to benefit
more severe impacts, to a impacted individual or class
specific beneficiary or to a class
U.S. Department of the Treasury
18
Premium Pay for
3
Provide Premium Pay for Essential Employees Essential Workers
Recipients may use this funding to provide premium pay to eligible workers performing
essential work, either in public sector roles or through grants to third-party employers.
1 • Eligible workers are those in critical Example professions and sectors eligible:
infrastructure sectors ✓ Tribal, state, and local government workforce
✓ Staff at nursing homes, hospitals,
2 • Essential work involves regular in-person and home-care settings
interactions or physical handling of items
✓ Public health, safety, and emergency response
handled by others
✓ Workers at food production facilities, grocery
3 • Pay must respond to worker needs: stores, restaurants, and food delivery services
– Serves workers who: ✓ Janitors and sanitation workers
» Earn at or below 150 percent of ✓ Truck drivers, transit staff, and warehouse
their state or county’s average workers
annual wage, or ✓ Public health and safety staff
» Are not exempt from Fair Labor
Standards Act overtime rules NEW ✓ Childcare workers, educators, and school staff
– Or recipient provides written ✓ Social service and human services staff
justification of how it meets needs ✓ Additional sectors designated by recipients
Pay can be flexibly awarded up to $13 per hour in installments or lump sums to hourly, part time, or
salaried/non-hourly workers, and may not exceed $25,000 for any single worker during the program
U.S. Department of the Treasury
19
Water, Sewer &
4 Broadband
Build Water and Sewer Infrastructure Infrastructure
Recipients may use these funds to make a broad range of necessary investments in water and
sewer infrastructure.
1 • Projects eligible under the EPA’s State Revolving 2 • Additional projects eligible under Final Rule
Funds, including: include: NEW
✓ Construction of publicly owned treatment works ✓ Broad suite of additional lead remediation
✓ Decentralized wastewater treatment systems activities, including lead testing and lead
construction, upgrades & repair service line replacement (including
replacement of faucets, fixtures, and
Examples of ✓ Management & treatment of stormwater or internal plumbing in schools and childcare
Clean Water subsurface drainage water facilities)
State
✓ Water conservation, efficiency, or reuse ✓ Additional stormwater infrastructure,
Revolving
Fund Projects measures including culvert repair, resizing and
✓ Reuse or recycling of wastewater, stormwater, or removal, and replacement of storm sewers
subsurface drainage water ✓ Residential wells
✓ New facilities to improve drinking water quality ✓ Certain dam and reservoir rehabilitation
✓ New sources to replace contaminated drinking
Examples of water or increase drought resilience
Drinking Water ✓ Green infrastructure
State
Revolving ✓ Storage of drinking water
Fund Projects ✓ New community water systems
✓ Lead service line replacement
U.S. Department of the Treasury
20
Water, Sewer &
4 Broadband
Build Broadband Infrastructure Infrastructure
Recipients may use these funds to make a broad range of necessary investments in broadband
infrastructure, in order to meet access, affordability, and other challenges.
1• Identify an eligible area for investment
– Recipients are encouraged to invest in locations without reliable wireline service of at least
100/20 Mbps speed, but are broadly able to invest in locations where recipient has identified
need for additional investment NEW
– Such need can include lack of access to high speeds, affordability & reliability
2• Design project to meet high-speed technical standards
– Deliver reliable high-speed service of minimum 100 Mbps symmetrical speeds unless
impracticable
3• Require enrollment in a low-income subsidy program NEW
– Recipients must require service providers for a broadband project that provides service to
households to either:
✓ Participate in the FCC’s Affordable ✓ Provide access to a broad-based,
Connectivity Program low-income affordability program
commensurate to the Affordable
Connectivity Program
Flexibility in eligible areas for investment complements IIJA broadband funding; recipients are also
able to invest in cybersecurity for broadband infrastructure regardless of service delivery standards
U.S. Department of the Treasury
21
Restrictions on Use
The final rule maintains the IFR’s restrictions on use with additional clarifications.
For states and territories:
Net Reduction in • SLFRF may not be used to directly or indirectly offset a reduction in
1 Tax Revenue net tax revenue resulting from a change in state or territory law, as
required by the American Rescue Plan
For all recipients except for Tribal governments:
• SLFRF may not be used for deposits into pension funds, as required by the
American Rescue Plan
Deposits into
2 Pension Funds • A “deposit” is defined as an extraordinary contribution to a pension fund
for the purpose of reducing an accrued, unfunded liability
• Recipients may use funds for routine payroll contributions to pensions of
employees whose wages and salaries are an eligible use
For all recipients:
• Funds may not be used for debt service, replenishing rainy day
Other funds/financial reserves, or satisfaction of a settlement or judgment
3 Restrictions • Uses of funds may not undermine COVID-19 mitigation practices in line
on Use with CDC guidance and recommendations
• Uses of funds may not violate Uniform Guidance conflict-of-interest
requirements or other applicable laws
U.S. Department of the Treasury
22
Non-Federal Match and Cost-Share Requirements
The final rule provides clarity on use of FRF funds to meet non-federal match and cost-
sharing requirements of other federal programs.
• Generally, funds available under the “revenue loss” eligible
use category can be used to meet the non-federal cost-
“Revenue Loss” share or matching requirements of other federal programs
1 Eligible Use
Category • Except that funds may not be used as the non-federal share
for a state’s Medicaid and CHIP programs, even under the
“revenue loss” eligible use category
• Generally, funds in other eligible use categories beyond
“revenue loss” cannot be used to meet the non-federal
Other cost-share or matching requirements of other federal
2 Eligible Use programs
Categories • Except when a federal statute specifically and/or expressly
permits FRF to be used as match (e.g., IIJA permits FRF as
match on certain broadband deployment projects and
authorized Bureau of Reclamation projects)
U.S. Department of the Treasury
23
Note on Reporting
Recipients should consult Treasury’s reporting guidance and user guide for their reporting.
Recipients Requirements
Quarterly Recipients required to submit quarterly reports: • Recipients should rely on reporting
Reports Due • Tribal governments that received an award of guidance and user guide issued by
January 31 more than $30 million Treasury
• States and territories • Portal will reflect certain final rule
• Metropolitan cities and counties with changes, including information on
population over 250,000 capital expenditures as part of public
• Metropolitan cities and counties with health and economic response, fiscal
population less than 250,000 that received an year revenue loss calculation, standard
award of more than $10 million allowance election, & expanded
flexibility in premium pay
Quarterly and All recipients above, who are required to submit • Treasury will issue additional reporting
Annual quarterly reports, as well as recipients required to guidance ahead of reports due April 30
Reports Due submit annually, which include:
• Tribal governments that received an award less
April 30 than $30 million
• Metropolitan cities and counties with
population less than 250,000 that received an
award less than $10 million,
• Nonentitlement units of government
U.S. Department of the Treasury
24
For More Information:
Please visit Treasury’s website at
https://home.treasury.gov/policy-
issues/coronavirus/assistance-for-state-local-
and-tribal-governments/state-and-local-fiscal-
Thank you, and recovery-fund/tribal-governments
time for Q&A. To Request Funding:
Please visit www.treasury.gov/funding
For Media Inquiries:
Please contact the U.S. Treasury Press Office at
(202) 622-2960
For General Inquiries:
Please email SLFRP@treasury.gov
U.S. Department of the Treasury
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