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Treasury releases statement on process for releasing a Final Rule for Fiscal Recovery Fund

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    Treasury releases statement on process for releasing a Final Rule for Fiscal Recovery Fund

    Earlier this month, the U.S. Department of Treasury (Treasury) released a statement on the process for finalizing the Interim Final Rule (IFR) for the American Rescue Plan’s (ARP) Coronavirus State and Local Fiscal Recovery Fund (Recovery Fund).

    Most notably, Treasury states that until a Final Rule is adopted and becomes effective, the IFR is, and will remain, binding and effective. This means that if counties use Recovery Funds in a manner consistent with the IFR, while the IFR is effective, they will not be subject to recoupment.

    Other updates in Treasury’s statement include:

    • Treasury is in the process of reviewing the over 1,000 public comments in response to the Interim Final Rule (IFR).
    • Treasury expects its review of comments to continue into the fall. Therefore, the Final Rule will not be published until this fall or after.
    • Until Treasury adopts a Final Rule and the Final Rule becomes effective, the IFR is, and will remain, binding and effective. This means that counties can and should rely on the IFR to determine whether uses of funds are eligible under the Recovery Fund.
    • Funds used in a manner consistent with the Interim Final Rule while the Interim Final Rule is effective will not be subject to recoupment
    • Counties may use the IFR to interpret whether their use of fund meet the criteria of what is eligible (beyond the eligible uses listed on page two of Treasury’s recent statement)
    • Counties can use State and Local Fiscal Recovery Funds, up to their amount of revenue loss due to COVID-19, with broad discretion to provide government services
    • Counties may also consider FAQs issued by Treasury to help assess whether a project or service would be an eligible use of Coronavirus State and Local Fiscal Recovery Funds.

    To read Treasury’s full statement on the Final Rule process, click here. You can also find Treasury’s statement on their State and Local Fiscal Recovery Fund main site here.

    NACo will continue to monitor updates in regard to the Fiscal Recovery Fund program and provide updates as needed.

    Earlier this month, the U.S. Department of Treasury (Treasury) released a statement on the process for finalizing the Interim Final Rule (IFR) for the American Rescue Plan’s (ARP) Coronavirus State and Local Fiscal Recovery Fund (Recovery Fund).
    2021-09-29
    Blog
    2021-10-06

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