Agenda - Council Work Session - 03/08/2022

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AUTHENTICATED U.S.GOVERNMENT INFORMATION GPO 4338 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations DEPARTMENT OF THE TREASURY makes several changes to the provisions exceeded its pre-pandemic size 8 and of the interim final rule, summarized unemployment had fallen below 5 31 CFR Part 35 below in the section Executive percent,9 but despite this progress,too RIN 1505—AC77 Summary of Major Changes. many Americans remain unemployed, Since Treasury issued the interim out of the labor force, or unable to pay Coronavirus State and Local Fiscal final rule in May 2021,both the public their bills,with this pain particularly Recovery Funds health and economic situations facing acute among lower-income Americans AGENCY: .Department of the Treasur the country have evolved. On the public and communities of color.Again, p y health front,the United States has made moving forward, state,local, and Tribal ACTION: Final rule. tremendous progress in the fight against governments will remain on the SUMMARY: The Secretary of the Treasury COVID-19,including a historic frontlines of the economic response and (Treasury)is adopting as final the vaccination campaign that has reached rebuilding a stronger economy in the interim final rule published on May 17, over 80 percent of adults with at least aftermath of the pandemic. 2021,with amendments. This rule one dose and is reaching millions of However,as state,local, and Tribal implements the Coronavirus State Fiscal children as well.4 However,the disease governments continue to face Recovery Fund and the Coronavirus continues to present an imminent threat substantial needs to respond to public Local Fiscal Recovery Fund established to public health,especially among health and economic conditions,they under the American Rescue Plan Act. unvaccinated individuals. As the Delta have also experienced severe impacts DATES: The provisions in this final rule variant spread across the country this from the pandemic and resulting are effective April 1, 2022. summer and fall,the United States faced recession. State,local,and Tribal governments cut over 1.5 million jobs in FOR FURTHER INFORMATION CONTACT: another severe wave of cases, deaths, the early months of the pandemic amid Katharine Richards,Director, and strain on the healthcare system, sharp declines in revenue and remain Coronavirus State and Local Fiscal with the risk of hospitalization and over 950,000 jobs below their pre- Recovery Funds, Office of Recovery mortality exponentially greater to pandemic levels.10 As the Great Programs,Department of the Treasury, unvaccinated Americans. COVID-19 has Recession demonstrated,austerity (844) 529-9527. now infected over 50 million and killed among state,local,and Tribal SUPPLEMENTARY INFORMATION: over 800,000 Americans since January governments can hamper overall 2020;tens of thousands of Americans economic growth and severely curtail I.Introduction continue to be infected each day.5 Even the ability of governments to serve their Overview as the nation recovers,new and constituents. Since the first case of coronavirus emerging COVID-19 variants may Recognizing these imperatives,the disease 2019 (COVID-19)was continue to pose threats to both public SLFRF program provides vital resources discovered in the United States in health and the economy. Moving for state, local,and Tribal governments forward state,local and Tribal to respond to the pandemic and its January 2020,the pandemic has caused governments will continue to playa economic effects and to replace revenue severe,intertwined public health and major role in responding through p economic crises. In March 2021, as p g g lost due to the public health emergency, these crises continued,the American vaccination campaigns,testing,and preventing cuts to government services. Rescue Plan Act of 2021 (ARPA)1 other services. Specifically,the ARPA provides that established the Coronavirus State and The economic recovery similarly has SLFRF funds 11 may be used: Local Fiscal Recovery Funds (SLFRF)to made tremendous progress but faces (a)To respond to the public health provide state,local, and Tribal continued risks from the disease and the emergency or its negative economic governments 2 with the resources disruptions it has caused. In the early impacts, including assistance to p households,small businesses,ande o s onthf the pandemic,the United needed to respond to the pandemic and m nonprofits,or aid to impacted industries its economic effects and to build a States experienced the sharpest non p p stronger,more equitable economy economic downturn on record,with such as tourism,travel,and hospitality; during the recovery. The U.S. unemployment spiking to 14.8 percent (b) To respond to workers performing Department of the Treasury(Treasury) in April 2020.E The economy has essential work during the COVID-19 issued an interim final rule gradually added back jobs,with growth accelerating in the first half of 2021. 8 U.S.Bureau of Economic Analysis,Real Gross implementing the SLFRF program on g Domestic Product[GDPC1],retrieved from FRED, May 10, 20213 and has since disbursed However,as the Delta variant spread, Federal Reserve Bank of St.Louis,https://fred. over$240 billion to state,local,and the intensified health risks and renewed st1ouisfed.org/series/GDPC1(last visited December disruptions slowed growth, 7,2021). Tribal governments and received over p g 9 U.S.Bureau of Labor Statistics,supra note 6. 1,500 public comments on the interim demonstrating the continued risks from p the virus. B fall 2021 the economy had 10 U.S.Bureau of Labor Statistics,All Employees, final rule. Treasury is now issuing this y y State Government[CES9092000001]and All final rule which responds to public Employees,Local Government[CES9093000001], comments,implements the ARPA 4 Centers for Disease Control and Prevention, retrieved from FRED,Federal Reserve Bank of St. p COVID Data Tracker:COVID-19 Vaccinations in the Louis,https://fred.stlouisfed.org/series/ statutory provisions on eligible and United States,https://covid.cdc.govlcovid-data- CES9092000001 and https://fred.stlouisfed.org/ ineligible uses of SLFRF funds,and tracker/#vaccinations(last visited December 31, series/CES9093000001(last visited December 7, 2021). 2021). 'Public Law 117-2.https://www.congress.govl 5 Centers for Disease Control and Prevention, 11 The ARPA adds section 602 of the Social 117/p1aws/pub12/PLAW-117pub12.pdf. COVID Data Tracker,http://www.covid.cdc.govl Security Act,which creates the State Fiscal 2 covid-data-tracker/#datatracker-home(last visited Recovery Fund,and section 603 of the Social Throughout this Supplementary Information, Security Act,which creates the Local Fiscal Treasury uses"state,local,and Tribal December 7,2021). Recovery Fund(together,SLFRF).Sections 602 and governments"or"recipients"to refer generally to 6 U.S.Bureau of Labor Statistics,Unemployment 603 contain substantially similar eligible uses;the governments receiving SLFRF funds;this includes Rate[UNRATE],retrieved from FRED,Federal primary difference between the two sections is that states,territories,Tribal governments,counties, Reserve Bank of St.Louis;https://fred. section 602 establishes a fund for states,territories, metropolitan cities,and nonentitlement units of stlouisfed.org/series/UNRATE(last visited and Tribal governments and section 603 establishes local government. December 7,2021). a fund for metropolitan cities,nonentitlement units 3 86 FR 26786(May 17,2021). 7Id, of local government,and counties.