U.S. House Passes the Build Back Better Act

Treasury Issues Final Rule for Fiscal Recovery Funds Program

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On January 6, 2022, the U.S. Department of Treasury issued the final rule for the State and Local Fiscal Recovery Funds (SLFRF) Program. The final rule created additional clarification, flexibility, and simplification of the program. The final rule takes effect on April 1, 2022. Until that date, the interim final rule is in effect; however, the final rule’s flexibility and simplification may be used even ahead of the effective date.

The final rule includes the following significant changes or clarifications from the interim final rule:

  • Calculation of revenue loss – recipients may elect an allowance of up to $10 million without performing a revenue loss calculation. For many government entities, the entire SLFRF award can be covered by this election. Governments may use the revenue loss allowance on any services the government traditionally provides, unless specifically prohibited by Treasury, allowing for maximum flexibility.
  • Clarifies what capital expenditures are allowable under the public health and economic impact provision.
  • Broadens the share of workers eligible for premium pay without written justification.
  • Expands the water, sewer, and infrastructure eligible uses.

Read the Treasury’s Overview of the Final Rule and the complete Final Rule.

Please contact a member of Yeo & Yeo’s Government Services Group if you need assistance.

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