Agenda - Council Work Session - 03/08/2022

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U.S. DEPARTMENT OF THE TREASURY RESPONDING TO NEGATIVE ECONOMIC IMPACTS The pandemic caused severe economic damage and, while the economy is on track to a strong recovery, much work remains to continue building a robust, resilient, and equitable economy in the wake of the crisis and to ensure that the benefits of this recovery reach all Americans.While the pandemic impacted millions ofAmerican households and businesses, some ofits most severe impacts fell on low-income and underserved communitiesl where pre-existing disparities amplified the impact of the pandemic and where the most work remains to reach a full recovery. The final rule recognizes that the pandemic caused broad-based impacts that affected many communities, households, and small businesses across the country;for example, many workers faced unemployment and many small businesses saw declines in revenue.The final rule describes these as "'impacted" households, communities,small businesses, and nonprofits. At the same time,the pandemic caused disproportionate impacts, or more severe impacts, in certain communities. For example, low-income and underserved communities have faced more severe health and economic outcomes like higher rates of[OVID'19 mortality and unemployment, often because pre- existing disparitiesexacerbatedtheimpacioythepandemlc.Thefina| ru|edescribestheseas "'disproportionately impacted" households, communities, small businesses, and nonprofits. To simplify administration of the program,the final rule presumes that certain populations were "impacted" and "disproportionately impacted" by the pandemic; these populations are presumed to be eligible for services that respond to the impact they experienced.The final rule also enumerates a non- exhaustive UstofeUgibleusesthetarenecognizedasresponsivetotheimpactsordisproportionate impacts ofCOV(D-19. Recipients providing enumerated uses to populations presumed eligible are clearly operating consistently with the final rule. As discussed further in the section Framework for Eligible Uses Beyond Those Enumerated, recipients can also identify other pandemic impacts, impacted or disproportionately impacted populations or classes, and responses. However, note that the final rule maintains that general infrastructure projects, including roads, streets,, and surface transportation infrastructure, would generally not be eligible under this eligible use category, unless the project responded to a specific pandemic public health need or a specific negative economic impact. Similarly, general economic development or worl(force development—activities that do not respond to negative economic impacts of the pandemic but rather seek to more generally enhance the jurisdiction's business climate—would generally not be eligible under this eligible use category. Coronavirus State&Local Fiscal Recovery Funds:Overview of the Final Rule <1S. Department q/the Treasury 16