Final Rule for ARPA State and Local Fiscal Recovery Funds Program Issued by the U.S. Treasury
The much-anticipated final rule which governs spending guidelines for the American Rescue Plan Fiscal Recovery Funds Program was issued January 6, 2022 by the United States Treasury. The final rule provides much more flexibility and simplicity in the program. Among other things, the final rule:
- Allows recipients to select between a standard allowance for revenue loss of up to $10 million over the life of the program or completion of a full revenue loss calculation each year. Recipients that select the standard allowance may use that amount, in many cases their full award, for government services, with streamlined reporting requirements.
- Clarifies that recipients can use funds for capital expenditures that support an eligible COVID-19 public health or economic response.
- Provides an expanded set of households and communities that are presumed to be impacted by the pandemic.
- Expands the list of allowable uses for recipients to respond to COVID-19 and its economic impacts to make affordable housing, childcare, early learning and services to address learning loss more readily available to all communities impacted by the pandemic.
- Allows for a broader set of uses to restore and support government employment
- Provides more streamlined options to provide premium pay for essential workers
- Broadens eligible water, sewer and broadband infrastructure investments that can be funded under the program
The final rule is effective April 1, 2022. Until that time, the interim final rule remains in effect. However, recipients can take actions and use funds in accordance with the final rule prior to that date and the Treasury will not take action to enforce the interim final rule if the use of funds is consistent with the terms of the final rule, regardless of when the funds were used under the program.