U.S. Department of the Treasury, State and Local Fiscal Recovery Funds: "Tribal government fact sheet"

Summary

A Treasury fact sheet for Tribal governments on the State and Local Fiscal Recovery Funds Final Rule adopted on January 6, 2022, under a program that allocates $20 billion for Tribal governments. It describes a $10 million standard allowance for revenue loss and presumptions that households and communities served by Tribal governments, and small businesses operated by Tribal governments or on Tribal lands, were disproportionately impacted by the pandemic. Tribal governments are exempt from the written justification requirement for capital expenditures, and Tribal development districts are listed among impacted industries. The fact sheet states that the final rule takes effect on April 1, 2022 and permits hiring public sector staff up to 7.5% above pre-pandemic workforce levels.

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                              DEPARTMENT OF THE TREASURY
                                       WASHINGTON, D.C. 20220



                 State and Local Fiscal Recovery Funds Final Rule
                          Tribal Government Fact Sheet
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. After carefully considering feedback
through Tribal consultations and written comments from Tribal governments, the U.S.
Department of the Treasury has made the following revisions to the SLFRF program in a Final
Rule adopted on January 6, 2022. Treasury also published a user-friendly overview of many of
the major provisions of the final rule.
Replacing Lost Public Sector Revenue
   •   The final rule provides a standard allowance for revenue loss of $10 million, allowing
       recipients to select between a standard amount of revenue loss or complete a full revenue
       loss calculation. Recipients that select the standard allowance may use those funds for
       government services, with streamlined reporting requirements.
Public Health and Negative Economic Impacts
   •   Households and communities served by Tribal governments are presumed to be
       disproportionately impacted by the public health and negative economic impacts of the
       pandemic, thereby allowing Tribal governments to provide them with a wide range of
       services without requiring additional analysis.

          o Eligible uses include, but are not limited to, cash and food assistance, health
            insurance coverage expansion and paid sick and family leave, financial services
            for the unbanked and underbanked, affordable housing development and
            permanent supportive housing, childcare, early learning services, addressing
            learning loss for K-12 students, and improvements to vacant or abandoned
            property.

   •   The final rule clarifies that recipients can use funds for capital expenditures that support
       an eligible COVID-19 public health or economic response. For example, recipients may
       build certain affordable housing, childcare facilities, schools, hospitals, and other projects
       consistent with final rule requirements.

          o Tribal governments are exempt from the requirement to complete a written
            justification for capital expenditures.
   •   The final rule simplifies administration so small businesses operated by Tribal
       governments or on Tribal lands are presumed to be disproportionately impacted by the
       public health and negative economic impacts of the pandemic. This means that Tribal
       businesses may receive loans or grants to mitigate financial hardship, as well as technical
       assistance and other business planning help, as well as access a broader set of capital
       expenditures and support services – from rehabilitation of commercial properties to
       support for microbusinesses.

   •   Treasury includes Tribal development districts – which are the commercial centers for
       Tribal hospitality, gaming, tourism, and entertainment industries – in the list of impacted
       industries eligible to receive aid that responds to those impacts.

   •   The final rule allows recipients to cover payroll and covered benefits for public safety,
       public health, and human services staff for the portion of time spent responding to
       COVID-19. The rule also provides a broader menu of options for recipients to restore and
       support their public sector workforce – such as:

           o hiring public sector staff, up to 7.5% above their pre-pandemic workforce levels
             to make up for underinvestment since the Great Recession;
           o providing funds to employees that experienced pay cuts or furloughs;
           o avoiding layoffs; and
           o providing retention incentives.

Premium Pay

   •   The final rule delivers more streamlined options to provide premium pay, by broadening
       the share of eligible workers who can receive premium pay without a written justification
       while maintaining a focus on lower-income and frontline workers performing essential
       work.

           o The Tribal government workforce is identified as eligible workers in critical
             infrastructure sectors.
Water, Sewer & Broadband Infrastructure
   •   The final rule significantly broadens eligible broadband infrastructure investments to
       address challenges with broadband access, affordability, and reliability, and adds
       additional eligible water and sewer infrastructure investments, in recognition of the
       unique challenges facing many recipients in delivering clean water and high-speed
       broadband to their communities.


Final Rule Effective Date
The final rule takes effect on April 1, 2022. Recipients can choose to take advantage of the final
rule’s flexibilities and simplifications now, even ahead of the effective date. Treasury will not
take action to enforce the interim final rule to the extent that a use of funds is consistent with the
terms of the final rule, regardless of when the SLFRF funds were used.
Recipients should consult the Statement Regarding Compliance with the Coronavirus State and
Local Fiscal Recovery Funds Interim Final Rule and Final Rule, which can be found on
Treasury’s website, for more information on compliance with the interim final rule and the final
rule. Please send all questions related to SLFRF to SLFRP@treasury.gov.


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