U.S. Department of the Treasury, State and Local Fiscal Recovery Funds: "Tribal government fact sheet for the 2023 Interim Final Rule"
Summary
A Treasury fact sheet dated August 10, 2023 on the State and Local Fiscal Recovery Funds Interim Final Rule for Tribal governments, noting the program allocates $20 billion for Tribal governments. It explains that the Consolidated Appropriations Act, 2023 amended the program in December 2022 and that the IFR sets a framework for emergency relief from natural disasters, under which Tribal governments may cite Indigenous Traditional Ecological Knowledge for mitigation projects. The fact sheet describes three pathways for surface transportation projects and rules for Title I projects, which must direct at least 70% of funds to projects that principally benefit low- and moderate-income persons. Funds for the new uses may cover costs incurred beginning December 29, 2022 and must be obligated by December 31, 2024.
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“U.S. Department of the Treasury, State and Local Fiscal Recovery Funds: ‘Tribal government fact sheet for the 2023 Interim Final Rule.’”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-state-and-local-fiscal-recovery-funds-t-0da8d9f163/
, SHA-256 3f28cb63c0c1b41281ebfbae581c7ea8f9f30f3233a9b4f2a4938a518ce3cc5b.Full text
DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220
State and Local Fiscal Recovery Funds Interim Final Rule
Tribal Government Fact Sheet
August 10, 2023
The State and Local Fiscal Recovery Funds program (SLFRF), authorized in the American
Rescue Plan, allocates $20 billion for Tribal governments to support their response to and
recovery from the COVID-19 public health emergency. In December 2022, Congress amended
the SLFRF program through the Consolidated Appropriations Act, 2023, providing additional
flexibility for recipients to use SLFRF funds to respond to natural disasters, build critical
infrastructure, and support community development. The existing eligible uses, as discussed in
the 2022 final rule, remain unchanged. Recipients may continue to use SLFRF funds in
alignment with the 2022 final rule.
Treasury issued an interim final rule (IFR) implementing the amendments to the SLFRF
program. Treasury also published a user-friendly overview of many of the major provisions of
the IFR.
Emergency Relief from Natural Disasters
The IFR provides a framework for using SLFRF funds to provide emergency relief from natural
disasters or their negative economic impacts. The IFR defines “natural disaster” and provides a
standard for providing emergency relief from natural disasters, using a two-step process.
Recipients must first identify a natural disaster that has occurred or is expected to occur
imminently, or a natural disaster that is anticipated to occur in the future, and then identify
emergency relief that responds to the physical or negative economic impacts, or potential
physical or negative economic impacts, of the natural disaster. The emergency relief must be
related and reasonably proportional to the impact identified.
• Tribal governments may respond to a natural disaster that has occurred or is expected to
occur imminently. The natural disaster must be, or have been, the subject of an
emergency declaration, which may include a declaration made by a Tribal government.
• If providing assistance in the form of mitigation activities to lessen or avert the threat of a
future natural disaster, Tribal governments may cite Indigenous Traditional Ecological
Knowledge to satisfy the requirement to document evidence of historical patterns or
predictions of natural disasters that would reasonably demonstrate the likelihood of future
occurrence of a natural disaster in their communities.
• For mitigation projects with total expected capital expenditures of $1 million or greater,
Tribal governments do not need to complete and meet the substantive requirements of a
Written Justification for their capital expenditure.
DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220
Surface Transportation Projects
The IFR specifies three pathways for using SLFRF funding for projects that are eligible under 26
surface transportation programs administered by the Department of Transportation. Pathway
One outlines how recipients may use SLFRF funds for projects receiving funding from DOT,
Pathway Two outlines how recipients may use SLFRF funds for projects that are not receiving
funding from DOT, and Pathway Three outlines how recipients may use SLFRF funds to satisfy
non-federal share requirements for certain Surface Transportation projects or to repay a TIFIA
loan.
• Under Pathway One, the Tribal Transportation Program (TTP) is a program under which
Tribal governments may use SLFRF to fund eligible projects.
• Pathway Two provides a streamlined framework for recipients to use SLFRF funds to
conduct a project that would be eligible under the RAISE grant program and that meets
certain additional criteria.
Title I Projects
The IFR outlines how recipients may use SLFRF funds for activities that are eligible under
section 105(a) of the Housing and Community Development Act of 1974 (referred to as Title I
projects), which align to eligible activities under the Indian Community Development Block
Grant (ICDBG) program.
• Recipients using SLFRF funds for Title I projects generally must comply with Title I
requirements and the associated regulations. Where applicable, program requirements of
the ICDBG Single Purpose Grants will apply to Tribal government SLFRF recipients.
• The following requirements apply to the total amount of SLFRF used towards Title I
projects:
o The Primary Objective: SLFRF recipients must direct at least 70% of SLFRF
funds used for Title I projects to projects that principally benefit low- and
moderate-income persons.
o Public Services Cap: Not more than 15% of SLFRF funds used for Title I
projects may be spent under the “public services” category of eligible activities.
o 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.
IFR Effective Date and Timeline of Use of Funds
DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220
The IFR was submitted for publication on August 9, 2023 and will become effective when
published. Recipients may use SLFRF funds for the new eligible uses for costs incurred
beginning December 29, 2022. Consistent with the existing eligible uses discussed in the 2022
final rule, recipients must obligate SLFRF funds for the new eligible uses by December 31, 2024.
Recipients must expend SLFRF funds obligated to provide emergency relief from natural
disasters by December 31, 2026. Recipients must expend SLFRF funds obligated for Surface
Transportation projects and Title I projects by September 30, 2026.
File and source
- File
- TREAS-2023-Interim-Final-Rule-Tribal-Government-Fact-Sheet.pdf
- Size
- 145,940 bytes
- SHA-256
- 3f28cb63c0c1b41281ebfbae581c7ea8f9f30f3233a9b4f2a4938a518ce3cc5b
- Original
- home.treasury.gov