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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4339
<br /> public health emergency by providing Executive Summary of Major Changes significantly broadens eligible
<br /> premium pay to eligible workers; and Clarifications broadband infrastructure investments to
<br /> (c)For the provision of government The final rule provides broader address challenges with broadband
<br /> services to the extent of the reduction in flexibility and greater simplicity in the access,affordability,and reliability, and
<br /> revenue due to the COVID-19 public program,in response to public adds additional eligible water and sewer
<br /> health emergency relative to revenues comments. Among other clarifications infrastructure investments,including a
<br /> broad range of lead remediation and
<br /> collected in the most recent full fiscal and changes,the final rule provides for
<br /> year prior to the emergency;and the following: stormwater management projects.
<br /> (d) To make necessary investments in • Public Health and Negative Structure of the Supplementary
<br /> water,sewer, or broadband Economic Impacts:In addition to Information
<br /> infrastructure. programs and services,the final rule In addition to this Introduction,this
<br /> In addition,Congress specified two clarifies that recipients may use funds Supplementary Information is organized
<br /> types of ineligible uses of funds:funds for capital expenditures that support an into four sections: (1)Eligible Uses, (2)
<br /> may not be used for deposit into any eligible COVID-19 public health or Restrictions on Use, (3)Program
<br /> pension fund or, for states and economic response. For example,
<br /> p recipients may build certain affordable Administration Provisions, and(4)
<br /> territories only,to directly or indirectly Regulatory Analyses.
<br /> offset a reduction in net tax revenue housing,childcare facilities, schools, The Eligible Uses section describes
<br /> resulting from a change in law, hospitals, and other projects consistent the standards to determine eligible uses
<br /> regulation,or administrative with the requirements in this final rule of funds in each of the four eligible use
<br /> interpretation. and the Supplementary Information. categories:
<br /> In addition,the final rule presumes 1 Responding to the public health
<br /> Issued May 10, 2021,Treasury's that an expanded set of households and ( ) P g
<br /> p and negative economic impacts of the
<br /> interim final rule provided further detail communities are"impacted" or g p
<br /> on eligible uses of funds within the four << p pandemic (which includes several sub-
<br /> disproportionately impacted by the categories)
<br /> statutory categories,ineligible uses of pandemic,thereby allowing recipients g )
<br /> funds,and administration of the p y g p (2)Providing premium pay to
<br /> program. The interim final rule to provide responses to a broad set of essential workers
<br /> provided state,local,and Tribal households and entities without (3)Providing government services to
<br /> requiring additional analysis.Further, the extent of revenue loss due to the
<br /> governments substantial flexibility to
<br /> determine how best to use payments the final rule provides a broader set of pandemic,and
<br /> from the SLFRF program to meet the enumerated eligible uses available for (4)Making necessary investments in
<br /> needs of their communities.The interim these communities as part of COVID-19 water,sewer,and broadband
<br /> final rule aimed to facilitate swift and public health and economic response, infrastructure.
<br /> including making affordable housing, Each eligible use category has
<br /> effective implementation by establishing childcare,and early learning services separate and distinct standards for
<br /> a framework for determining the types eligible in all impacted communities assessing whether a use of funds is
<br /> of programs and services that are and making certain community eligible. Standards,restrictions, or other
<br /> eligible under the ARPA along with development and neighborhood provisions in one eligible use category
<br /> examples of eligible uses of funds that revitalization activities eligible for do not apply to the others. Therefore,
<br /> state,local, and Tribal governments may disproportionately impacted recipients should first determine which
<br /> consider. communities. eligible use category a potential use of
<br /> State,local,and Tribal governments Further,the final rule allows for a funds fits within,then assess whether
<br /> are already deploying SLFRF funds to broader set of uses to restore and the potential use of funds meets the
<br /> make an impact in their communities. support government employment, eligibility standard or criteria for that
<br /> The SLFRF program ensures that state, including hiring above a recipient's pre- category. In the case of uses to respond
<br /> local,and Tribal governments have the pandemic baseline,providing funds to to the public health and negative
<br /> resources needed to fight the pandemic, employees that experienced pay cuts or economic impacts of the pandemic,
<br /> sustain and strengthen the economic furloughs, avoiding layoffs, and recipients should also determine which
<br /> recovery,maintain vital public services, providing retention incentives. sub-category the eligible use fits within
<br /> and make investments that support . Premium Pay:The final rule offers (i.e.,public health, assistance to
<br /> long-term growth, opportunity,and more streamlined options to provide households,assistance to small
<br /> equity.Treasury looks forward to premium pay,by broadening the share businesses,assistance to nonprofits,aid
<br /> supporting and engaging with state, of essential workers who can receive to impacted industries, or public sector
<br /> local,and Tribal governments as they premium pay without a written capacity and workforce),then assess
<br /> use these funds to make transformative justification while maintaining a focus whether the potential use of funds
<br /> investments in their communities.Finally,with so many pressing and on lower-income and frontline essential meets the eligibility standard for that effective ways to use SLFRF funds,there workers. sub-category. Treasury does not pre-
<br /> . Revenue Loss:The final rule offers approve uses of funds;recipients are
<br /> is no excuse for waste,fraud, or abuse a standard allowance for revenue loss of advised to review the final rule and may
<br /> of these funds. up to$10 million,not to exceed a pursue eligible projects under it.
<br /> Treasury received over 1,500 recipient's SLFRF award amount, In some sections of the rule,Treasury
<br /> comments spanning nearly all aspects of allowing recipients to select between a identifies specific uses of funds that are
<br /> the interim final rule. The final rule standard amount of revenue loss or eligible, called"enumerated eligible
<br /> considers and responds to comments, complete a full revenue loss calculation. uses"; for example,Treasury provides
<br /> provides clarification to many aspects of Recipients that select the standard many enumerated eligible uses of funds
<br /> the interim final rule,and makes several allowance may use that amount for to respond to the public health and
<br /> changes to eligible uses under the government services. negative economic impacts of the
<br /> program, summarized immediately • Water, Sewer, and Broadband pandemic. Uses of funds that are not
<br /> below. Infrastructure:The final rule specifically named as eligible in this
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