WIN FOR COUNTIES IN NEW TREASURY ARPA GUIDANCE
On March 29, the U.S. Treasury Department released new FAQs related to the Obligation Interim Final Rule (IFR) for the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Fund (SLFRF). These updates directly incorporated recommendations provided by NACo and grant additional flexibilities for county SLFRF investments.
Major wins for counties in the new guidance include:
- Extended personnel costs coverage for any SLFRF eligible position through December 31, 2026 that was established prior to the December 31, 2024 obligation deadline
- Subrecipients are not subject to the December 31, 2024 obligation deadline, providing relief and flexibility in project timeline
- New flexibility to reclassify excess funds for SLFRF eligible uses after the December 31, 2024 obligation deadline
The release of these new FAQs follows NACo's advocacy efforts to address county concerns and secure clarifications and flexibilities from Treasury. Understanding the complexities of county budgeting processes, NACo successfully urged Treasury to provide counties with the necessary guidance to navigate SLFRF obligations effectively.
Looking ahead, we encourage counties to incorporate these new flexibilities in preparing to submit Project and Expenditure (P&E) report by April 30, 2024.
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