Background
The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) (Assistance Listing No. 21.027), which the U.S. Department of the Treasury (Treasury) administers, was part of the American Rescue Plan Act that delivered $350 billion to state, local, and tribal governments to help respond to and recover from the COVID-19 pandemic. Many recipients, including small governments, who have historically received little to no federal funding, received SLFRF awards of $750,000 or more and are now subject to a single audit or a program-specific audit.
Final Rule Frequently Asked Questions (FAQs)
In an effort to assist the recipients of the SLFRF funds, Treasury has issued Treasury’s Interim Final Rule, Final Rule, and FAQs to the Interim Final Rule to help implement the SLFRF funds.
Additionally, in April 2023, Treasury released FAQs regarding the Final Rule, which took effect April 1, 2022. The new FAQs include the FAQs from the Interim Final Rule that are still relevant to recipients and their subrecipients. The FAQs contain a table that shows the FAQs that have been retained with slight changes to Treasury’s responses and also includes which FAQs are new or have been significantly updated.
FAQ 4.11 discusses how the end of the COVID-19 National Emergency impacts the SLFRF program. The SLFRF program continues to be available to recipients after the National Emergency concerning COVID-19 was terminated on April 10, 2023. The SLFRF funds final rule provides that recipients can use SLFRF funds to offer premium pay to eligible workers performing essential work during the COVID-19 public health emergency. However, recipients may not use SLFRF funds for work conducted after the end of the National Emergency. They may continue to use SLFRF funds under the public health and negative economic impacts eligible use category. Additionally, the end of the National Emergency does not affect how recipients calculate revenue loss and does not affect how recipients may use SLFRF funds under the water, sewer, and broadband infrastructure eligible use category. Other new and substantial updates include:
- Additional information on the way revenue loss funds can be used and calculated.
- Eligible requirements for funding.
- New or updated eligible uses of funds.
- Clarifications regarding premium pay.
- Procurement and bidding guidance.
- Requirements of the Uniform Guidance that apply to revenue loss.
- Use and disposition requirements for assets purchased with SLFRF funds.
| Practical Consideration: The FAQs can be accessed at https://home.treasury.gov/system/files/136/SLFRF-Final-Rule-FAQ.pdf |
