Local Government Leaders Urge Congress to Protect Recovery Fund Flexibility
Upcoming Events
Related News
“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.”
Media Contact
Nicole Weissman
Featured Initiative
American Rescue Plan Resource Hub
House releases clean Continuing Resolution to fund the government through November 21
On September 16, the U.S. House released the text of the Continuing Appropriations and Extensions Act, 2026 to extend government funding at current levels through November 21.
County Countdown – September 9, 2025
Every other week, NACo's County Countdown reviews top federal policy advocacy items with an eye towards counties and the intergovernmental partnership. This week features FEMA reform bill advancement, a major reorganization of the USDA and more.
White House to halt federal funds to jurisdictions using cashless bail
On August 25, the White House announced an EO ordering an end to cashless bail and threatening to suspend or terminate federal funds to jurisdictions that do not comply with the order.
White House issues Executive Order to change federal grantmaking process
On August 7, President Trump issued an Executive Order (EO) titled “Improving Oversight of Federal Grantmaking,” aiming to strengthen accountability, coordination and oversight in the federal grantmaking process.
NACo sends letter to congressional appropriations committees urging federal investments in county government activities
On July 9, NACo sent a letter to leaders of the U.S. House and U.S. Senate Appropriations Committees urging them to adequately fund key federal programs of importance to counties in the Fiscal Year (FY) 2026 discretionary appropriations bills.
U.S. Congress passes reconciliation bill: What it means for counties
On July 3, the U.S. Congress passed sweeping budget reconciliation legislation.
Inside Washington: County Impacts from the White House & Congress, September 18
Join NACo’s Government Affairs team for week eight of a biweekly series on key developments from the White House and Congress. Discussions will focus on policies and actions that directly impact counties — from federal funding and regulatory changes to intergovernmental partnerships. Tune in for an inside look at how these evolving federal dynamics may shape county priorities, responsibilities and operations.
Inside Washington: County Impacts from the White House & Congress, October 2
Join NACo’s Government Affairs team for week nine of a biweekly series on key developments from the White House and Congress. Discussions will focus on policies and actions that directly impact counties — from federal funding and regulatory changes to intergovernmental partnerships. Tune in for an inside look at how these evolving federal dynamics may shape county priorities, responsibilities and operations.
Inside Washington: County Impacts from the White House & Congress, October 16
Join NACo’s Government Affairs team for week ten of a biweekly series on key developments from the White House and Congress. Discussions will focus on policies and actions that directly impact counties — from federal funding and regulatory changes to intergovernmental partnerships. Tune in for an inside look at how these evolving federal dynamics may shape county priorities, responsibilities and operations.
Inside Washington: County Impacts from the White House & Congress, October 30
Join NACo’s Government Affairs team for week eleven of a biweekly series on key developments from the White House and Congress. Discussions will focus on policies and actions that directly impact counties — from federal funding and regulatory changes to intergovernmental partnerships. Tune in for an inside look at how these evolving federal dynamics may shape county priorities, responsibilities and operations.
Inside Washington: County Impacts from the White House & Congress, November 13
Join NACo’s Government Affairs team for week twelve of a biweekly series on key developments from the White House and Congress. Discussions will focus on policies and actions that directly impact counties — from federal funding and regulatory changes to intergovernmental partnerships. Tune in for an inside look at how these evolving federal dynamics may shape county priorities, responsibilities and operations.
Inside Washington: County Impacts from the White House & Congress, December 11
Join NACo’s Government Affairs team for week thirteen of a biweekly series on key developments from the White House and Congress. Discussions will focus on policies and actions that directly impact counties — from federal funding and regulatory changes to intergovernmental partnerships. Tune in for an inside look at how these evolving federal dynamics may shape county priorities, responsibilities and operations.