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4342 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations
<br /> presumed to be disproportionately certain services provided in Qualified regarding the broad flexibility provided
<br /> impacted,it also empowered recipients Census Tracts (QCTs),to individuals under the interim final rule to pursue
<br /> to identify other disproportionately living in QCTs, or by Tribal additional programs that respond to the
<br /> impacted households,populations, governments are responsive to public health or negative economic
<br /> communities,or small businesses. The disproportionate impacts of the impacts of the pandemic or the process
<br /> interim final rule provided that,in pandemic.In addition to the for doing so.
<br /> identifying these disproportionately populations presumed to be impacted or Treasury Response:Treasury
<br /> impacted communities,recipients disproportionately impacted,under the recognizes that many commenters felt
<br /> should be able to support their interim final rule,recipients could the structure of the interim final rule
<br /> determination that the pandemic identify other impacted households or could be clarified. These comments are
<br /> resulted in disproportionate public classes, as described above,as well as consistent with many of the questions
<br /> health or economic outcomes to the other populations,households,or that Treasury has received from
<br /> specific populations,households, or geographic areas that are recipients,which requested clarification
<br /> geographic areas to be served. disproportionately impacted by the regarding the category their desired
<br /> Throughout this final rule,Treasury pandemic. response fits into. Treasury observes
<br /> refers to those households, Third,as mentioned previously,the that these comments and questions
<br /> communities,small businesses,and interim final rule included a non- generally fall into four categories: (1)
<br /> nonprofits that experienced exhaustive list of uses of funds that How to identify the correct public
<br /> disproportionate public health or Treasury identified as responsive to the health or negative economic impact
<br /> negative economic impacts of the impacts or disproportionate impacts of category for a particular response, (2)
<br /> pandemic as "disproportionately the pandemic. Treasury refers to these how to identify whether a particular use
<br /> impacted."The third category in the as "enumerated eligible uses." is eligible, (3)how to identify an
<br /> interim final rule under this eligible use To summarize,the interim final rule impacted or disproportionately
<br /> included public health responses and identified certain populations that are impacted class,and (4)whether an
<br /> responses to the negative economic presumed to be impacted by the enumerated use can be provided to a
<br /> impacts for these disproportionately pandemic (and specific enumerated class other than those presumed
<br /> impacted classes. uses of funds that are responsive to that impacted or disproportionately
<br /> The interim final rule provided impact) and populations that are impacted. In response to comments,
<br /> significant flexibility for recipients to presumed to be disproportionately Treasury is adjusting the structure of the
<br /> determine which households, impacted by the pandemic (and specific public health and negative economic
<br /> populations,communities,or small enumerated uses of funds that are impacts eligible use section of the final
<br /> businesses have been impacted and/or responsive to those disproportionate rule to improve clarity and make it
<br /> disproportionately impacted by the impacts). In addition,the interim final easier for recipients to interpret and
<br /> pandemic and to identify appropriate rule provided standards for recipients to apply the final rule.
<br /> responses. The interim final rule assess whether additional uses of funds, Specifically,Treasury is restructuring
<br /> included several provisions to provide beyond the enumerated eligible uses, the rule to aid recipients in determining
<br /> simple methods for recipients to are eligible for impacted and whether a particular response is eligible
<br /> identify impacts and design programs to disproportionately impacted and how the particular response might
<br /> address those impacts.First,the interim populations and permitted recipients to be eligible under a particular category.
<br /> final rule allowed recipients to identify other households or classes that This restructuring reinforces the
<br /> demonstrate a negative economic experienced impacts of the pandemic or fundamental criteria that a use of funds
<br /> impact on a population or class and disproportionate impacts of the is eligible based on its responsiveness to
<br /> provide assistance to households or pandemic. a public health or negative economic
<br /> small businesses that fall within that Rule Structure impact experienced by individuals,
<br /> population or class. In such cases,the households,small businesses,
<br /> recipient need only demonstrate that an Public Comment:Many commenters
<br /> individual household or business is expressed concern regarding the nonprofits, or impacted industries
<br /> within the class that experienced a structure of the eligible uses,indicating (together"beneficiaries").18 This
<br /> negative economic impact,rather than they found the structure of the public restructuring is intended to make the
<br /> requiring a recipient to demonstrate that health and negative economic impacts rule easier to navigate and to
<br /> each individual household or small section of the interim final rule to be implement,including any criteria or
<br /> business experienced a negative confusing or difficult to navigate. Other conditions on particular uses of funds.
<br /> economic impact,because the impact commenters indicated that they The reorganization of the public
<br /> was already identified for the class. understood the enumerated uses to be health and negative economic impacts
<br /> Second,in the interim final rule, the only eligible uses and/or the section of the final rule is also intended
<br /> Treasury presumed that certain presumed eligible populations to be the to clarify the enumerated eligible uses
<br /> populations have been impacted or only eligible populations. Several described in the interim final rule. The
<br /> disproportionately impacted and are commenters expressed frustration about reorganization itself is not intended to
<br /> thus eligible for services that respond to the number of eligible uses specifically change the scope of the enumerated
<br /> these impacts or disproportionate enumerated in the interim final rule, uses that were included in the interim
<br /> impacts. Specifically,the interim final which they considered too few, and final rule or that were allowable under
<br /> rule permitted recipients to presume commenters proposed a wide range of the interim final rule.In some cases,
<br /> that households that experienced additional enumerated eligible uses (for specific enumerated uses are being
<br /> unemployment,increased food or further discussion, see the section altered, and those changes are discussed
<br /> housing insecurity,or are low-or Public Health and section Negative
<br /> moderate-income experienced a Economic Impacts). Commenters 18 Note that small businesses,nonprofits,and
<br /> negative economic impact from the expressed concern with pursuing uses industries may also function as subrecipients.For
<br /> pandemic.The interim final rule also of funds not explicitly enumerated in additional information on these distinctions seesection Distinguishing Subrecipients versus
<br /> permitted recipients to presume that the eligible use section or uncertainty Beneficiaries.
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