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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4395 <br /> in all sections of the public health and recipients to identify other public health Treasury Response:In the final rule, <br /> negative economic impacts eligible use or negative economic impacts to Treasury is maintaining the approach <br /> category,including in impacted and additional households, small under the interim final rule that general <br /> disproportionately impacted businesses, or nonprofits,including infrastructure projects,including roads, <br /> communities. The proposed additional classes of these entities, and pursue streets, and surface transportation <br /> uses included general categories of programs and services that respond to infrastructure,would generally not be <br /> services (e.g.,legal and social services, those impacts.Treasury also notes that eligible,unless the project responded to <br /> long-term investments to remediate some populations are presumed to be a specific pandemic public health need <br /> long-term disparities,response to impacted or disproportionately or a specific negative economic impact. <br /> natural disasters). Other suggested uses impacted by the pandemic,and thus The ARPA expressly includes <br /> of funds respond to needs widely eligible for responsive services;these infrastructure if it is"necessary" and in <br /> experienced across the country(e.g., presumed eligible populations may water,sewer,or broadband, suggesting <br /> access to and affordability of health encompass many individuals in the that the statute contemplates only those <br /> insurance). Finally, other suggested uses specific populations for whom types of infrastructure. Further, <br /> of funds were highly specific (e.g., commenters recommended services.For responding to the public health and <br /> healthcare equipment for a specific details on these issues, see section negative economic impacts of the <br /> health condition, fire hydrants,weather General Provisions: Structure and pandemic requires identifying whether, <br /> alert systems) or most applicable to the Standards. and the extent to which,there has been <br /> particularized needs to certain Infrastructure,Community a harm that resulted from the COVID— <br /> populations or geographic areas of the Development,and General Economic 19 public health emergency and <br /> United States (e.g., senior citizens, Development whether, and the extent to which,the <br /> immigrants,formerly incarcerated use would respond or address this <br /> individuals,responding to Some potential additions to harm. Uses of funds intended to <br /> environmental issues in certain enumerated eligible uses were also generally grow the economy and <br /> geographic regions). Other commenters recommended by several commenters therefore enhance opportunities for <br /> generally requested a high degree of each but are not included as enumerated workers and businesses would not be an <br /> flexibility to respond to the particular eligible uses in the final rule. eligible use,because such assistance is <br /> needs of their communities. Public Comment:Infrastructure:In not reasonably designed to impact <br /> Treasury Response:Given the large the interim final rule,Treasury noted individuals or classes that have been <br /> number and diversity of SLFRF that a"general infrastructure project,for identified as having experienced a <br /> recipients,Treasury has aimed to example,typically would not be negative economic impact.In other <br /> include as enumerated eligible uses included [in this eligible use category] words,there is not a reasonable <br /> programs, services, and capital unless the project responded to a connection between the assistance <br /> expenditures that respond to public specific pandemic public health need." provided and an impact on the <br /> health and negative economic impacts Numerous commenters requested that beneficiaries. Such an activity would be <br /> of the pandemic experienced widely in Treasury permit investments in attenuated from and thus not reasonably <br /> many jurisdictions across the country, infrastructure as a response to the designed to benefit the households that <br /> making it clear and simple for recipients public health and negative economic experienced the negative economic <br /> to pursue these enumerated eligible uses impacts of the pandemic.While these impact. <br /> under the final rule. This provides comments most commonly Note,however,that Treasury has <br /> enumerated eligible uses that many recommended that constructing and clarified that capital expenditures that <br /> recipients may want to pursue,while maintaining roads and surface are related and reasonably proportional <br /> including uses that are responsive to the transportation infrastructure be eligible, to responding to the public health and <br /> pandemic's impacts across the diverse the proposed uses for infrastructure economic impacts of the pandemic are <br /> range of SLFRF recipients.In the final ranged widely and included parking eligible uses of funds,in addition to <br /> rule,Treasury has clarified several lots,bridges,traffic management programs and services;for details on <br /> additional uses that generally respond infrastructure, solid waste disposal eligibility criteria for capital <br /> to pandemic impacts experienced facilities,and utility infrastructure expenditures, see section Capital <br /> broadly across jurisdictions and (outside of water, sewer,and Expenditures in General Provisions: <br /> populations. broadband). Other. <br /> Treasury has not chosen to include as Many commenters argued that Public Comment:Community <br /> enumerated uses all uses proposed by infrastructure development and Development Block Grant:Several <br /> commenters;given the significant range, maintenance is a pressing need in their commenters recommended that <br /> and in some cases highly specific communities and that their Treasury enumerate as eligible uses <br /> nature, of the proposed uses Treasury communities had less need for water, those eligible under the Department of <br /> was not able to assess that the proposed sewer,and broadband infrastructure or Housing and Urban Development's <br /> uses would respond to negative other eligible uses to respond to the Community Development Block Grant <br /> economic impacts experienced public health and negative economic (CDBG) or the Housing and Community <br /> generally across the country,supporting impacts of the pandemic. Other Development Act of 1974,which <br /> an enumerated eligible use available to commenters argued that these uses established the CDBG program. <br /> all recipients presumptively. would stimulate the economy,attract Commenters requested that these uses <br /> However,Treasury emphasizes that businesses, or allow for tourist be eligible either to respond to the <br /> the enumerated eligible uses are non- movement;these commenters argued negative economic impacts of the <br /> exhaustive and that other uses,beyond that,by generally supporting a stronger pandemic, or in the alternate the <br /> those enumerated, are eligible.Treasury economy or facilitating conditions that disproportionate negative economic <br /> recognizes that the impacts of the are more conducive to business activity impacts of the pandemic in certain <br /> pandemic vary over time,by and tourism,these uses respond to the communities. Under the CDBG program, <br /> jurisdiction,and by population;as such, negative economic impacts of the recipient governments may undertake a <br /> the final rule provides flexibility for pandemic. wide range of community and economic <br />