American Rescue Plan Final Rules and Reporting The U.S. Treasury Department has issued the Final Rule on uses and guidance for the American Rescue Plan (ARPA) funds. Among other changes, the final rule allows local governments to take a revenue loss allowance of up to $10 million without using the specified revenue loss calculation formula, and provides increased flexibility to pursue a broader range of uses. The Final Rule takes effect on April 1, but local governments can begin taking advantage of the expanded flexibility now. Some changes included in the Final Rule are: • Expanded the list of uses that recipients can use to respond to COVID-19 and its economic impacts. This clarifies that recipients can use funds for certain capital expenditures to respond to public health and economic impacts and making services like childcare, early education, addressing learning loss and affordable housing development available • Expanded support for public sector hiring and capacity • Streamlined options to provide premium pay for essential workers • Broadened eligible water, sewer, and broadband infrastructure In addition to these expansions, Treasury has simplified the process for a standard allowance for revenue loss of up to $10 million, allowing recipients to select between a standard amount of revenue loss or complete a total revenue loss calculation. Recipients that select the standard allowance may use up to that amount – in many cases their full award – for government services, with streamlined reporting requirements. The U.S. Treasury Department has various resources, guidelines and webinars to assist in their reporting process. The reporting requirements can be found at home.treasury. gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds/recipient-compliance-and-reporting-responsibilities. You can read the final rule here, home.treasury.gov/system/files/136/SLFRF-Final-Rule-Overview.pdf. Check out the League’s ARPA resources page to stay informed on current information www.iowaleague.org/resource/american-rescue-plan-resources 12 | February 2022 | Cityscape
Cityscape February 2022: Page 12
