Local Government Leaders Urge Congress to Protect Recovery Fund Flexibility

“We respectfully urge Congress to reject this resolution, preserve practical flexibility, and uphold a strong intergovernmental partnership in our ongoing recovery efforts.” 

WASHINGTON – The National Association of Counties, the National League of Cities and the Government Finance Officers Association issued a statement urging Congress to oppose a Congressional Review Act joint resolution being voted on today.

The resolution would strip flexibilities established by the U.S. Treasury Obligation Interim Final Rule (IFR) in November 2023. The IFR was designed to enable local leaders to invest State and Local Fiscal Recovery Fund (SLFRF) resources from the American Rescue Plan Act in ways that best address community needs. The organizations, which represent local governments that received SLFRF funds, said:

“On behalf of cities, counties and public finance officers responsible for delivering critical services and operations, we urge Congress to oppose this proposal to cut key flexibilities in the deployment of American Rescue Plan resources.

“The $350 billion SLFRF provided $65.1 billion to every city and county in America, and since 2021, localities have used these crucial resources to meet the unique needs of residents and support long-term economic prosperity.

“The U.S. Treasury recognized the importance of flexibility to facilitate the effective rollout of recovery funds, including our ability to use funds for certain personnel costs and to re-obligate funds where necessary.  

“To change the rules midstream would present unreasonable challenges in implementation and reporting for localities that are making significant investments in strengthening our communities today and for generations to come.  

“We respectfully urge Congress to reject this resolution, preserve practical flexibility, and uphold a strong intergovernmental partnership in our ongoing recovery efforts.”