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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4343
<br /> as changes within the section on that consider the two eligibility use is reasonably proportional,
<br /> enumerated use. requirements discussed below. These recipients should consider relevant
<br /> The final rule streamlines and aligns standards apply to all proposed public factors about the harm identified and
<br /> services and standards that are generally health uses. the response. For example,recipients
<br /> applicable or are provided for public First,there must be a negative public may consider the size of the population
<br /> health purposes. Under this approach, health impact or harm experienced by impacted and the severity,type, and
<br /> eligible uses to respond to the public an individual or a class. For ease of duration of the impact.Recipients may
<br /> health emergency are organized based administration,the interim final rule also consider the efficacy, cost,cost-
<br /> on the type of public health problem: (1) allowed,and the final rule maintains effectiveness,and time to delivery of the
<br /> COVID-19 mitigation and prevention, the ability for,recipients to identify a response.
<br /> (2)medical expenses, (3)behavioral public health impact on a population or If a recipient intends to fund capital
<br /> health care,and (4)preventing and group of individuals,referred to as a expenditures in response to the public
<br /> responding to violence. Under this "class,"and to provide assistance to health impacts of the pandemic,
<br /> approach, eligible uses to respond to the that class. In determining whether an recipients should refer to the section
<br /> negative economic impacts of the public individual is eligible for a program Capital Expenditures for details about
<br /> health emergency are organized based designed to address a harm experienced the eligibility of capital expenditures.
<br /> on the type of beneficiary: (1)Assistance by a class,the recipient need only Standards:Designating a Negative
<br /> to households, (2) assistance to small document that the individual is within Economic Impact
<br /> businesses, and (3) assistance to the class that experienced a public
<br /> nonprofits, alongside a fourth health impact,see section Standards: Public Comment:Many commenters
<br /> expressed uncertainty about how to
<br /> standalone eligibility category for aid to Designating Other Impacted Classes. In
<br /> travel,tourism,hospitality,and other the case of some impacts,for example determine whether uses of funds,
<br /> beyond those specifically enumerated as
<br /> impacted industries. The first three impacts of COVID-19 itself that are
<br /> categories,assistance to households, addressed by providing prevention and eligible,might be eligible responses to
<br /> negative economic impacts.For
<br /> small businesses, and nonprofits, mitigation services,such a class could
<br /> include enumerated eligible uses for reasonably include the general public. example,many commenters submitted
<br /> questions asking whether specific uses
<br /> impacted and disproportionately Second,the program, service, or other
<br /> impacted beneficiaries. This change in intervention must address or respond to of funds would be eligible. Others
<br /> structure is intended to provide a the identified impact or harm.The final described what they considered to be
<br /> impacts of the pandemic and argued
<br /> framework that clearly identifies the rule maintains the interim final rule
<br /> that uses of funds to respond to these
<br /> intended beneficiaries of uses of funds requirement that eligible uses under this
<br /> and provides clarity about what types of category must be in response to the issues should be eligible. Some
<br /> assistance are "responsive to the disease itself or other public health commenters requested that Treasury
<br /> provide additional detail to guide their
<br /> pandemic or its negative economic harms that it caused.19
<br /> impacts" for these beneficiaries. Responses must be reasonably assessments of eligible uses of funds.
<br /> designed to benefit the individual or These comments ranged in their
<br /> a. Standards for Identifying a Public class that experienced the public health specificity and covered the full range of
<br /> Health or Negative Economic Impact impact or harm. Uses of funds should be eligible uses to respond to negative
<br /> Standards:Designating a Public Health assessed based on their responsiveness economic impacts. Several commenters
<br /> asked for clarification about what types
<br /> Impact to their intended beneficiaries and the
<br /> ability of the response to address the of food assistance would be considered
<br /> Public Comment:Many commenters eligible.Another commenter requested
<br /> expressed uncertainty about how to impact or harm experienced by those that the establishment of outdoor dining
<br /> determine whether a use of funds, beneficiaries. be eligible. Many commenters inquired
<br /> beyond those specifically enumerated as Responses must also be related and about homeless shelters as an eligible
<br /> eligible,might be an eligible public reasonably proportional to the extent use of SLFRF funds.
<br /> health response. For example,many and type of public health impact or Commenters also expressed
<br /> commenters submitted questions asking harm experienced. Uses that bear no uncertainty about the ability to establish
<br /> whether specific uses of funds would be relation or are grossly disproportionate classes,including geographic areas,that
<br /> eligible. Others described what they to the type or extent of harm experienced a negative economic impact
<br /> considered to be impacts of the experienced would not be eligible uses. or disagreed with the requirement that
<br /> pandemic and argued that uses of funds Reasonably proportional refers to the an individual entity be impacted by the
<br /> to respond to these issues should be scale of the response compared to the pandemic in order to receive assistance.
<br /> eligible. Some commenters requested scale of the harm.It also refers to the For example,a commenter argued that
<br /> that Treasury provide additional detail targeting of the response to beneficiaries interventions should not be limited to
<br /> to guide their assessments of eligible compared to the amount of harm they individuals or businesses that
<br /> uses of funds.For example,a experienced. In evaluating whether a experienced an economic impact and
<br /> commenter requested more clarification should instead be used broadly to
<br /> around exactly what and whose medical 19In designing an intervention to mitigate support economic growth.These
<br /> COVID-19,the recipient should consider guidance pp g
<br /> expenses can be covered. These from public health authorities,particularly the commenters argued that an expenditure
<br /> comments ranged in their specificity Centers for Disease Control and Prevention(CDC), that supports a more robust economy
<br /> and covered the full range of the in assessing appropriate COVID-19 mitigation and may help combat the pandemic's
<br /> enumerated eligible uses. prevention strategies(see Centers for Disease negative economic impacts,and it can
<br /> Control and Prevention,COVID-19,https://
<br /> Treasury Response:Treasury is www.cdc.gov/coronavirus/2019-ncov/index.html). do so even if funding is provided to
<br /> clarifying that when assessing whether A program or service that imposes conditions on individuals or entities that did not
<br /> a program or service is an eligible use participation in or acceptance of the service that themselves experience a negative
<br /> would undermine efforts to stop the spread of
<br /> to respond to the public health impacts economic impact during the pandemic.
<br /> of the COVID-19 public health in line with CDC guidance for stopping the spread Treasury Response:The final rule
<br /> emergency,the Department will of COVID-19 is not a permissible use of funds. maintains the standard articulated in
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