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4354 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations
<br /> use of funds so long as such costs are equipment(e.g.,emergency response Treasury Response:These are
<br /> reasonably proportional to the expected radio systems); permissible uses of funds under the
<br /> public health benefit."75 This use of • Installation and improvements of interim final rule and remain eligible
<br /> funds remains permissible under the ventilation systems; under the final rule.
<br /> final rule. • Costs of establishing public health Assistance to Businesses and Nonprofits
<br /> Capital Expenditures data systems,including technology To Implement COVID-19 Mitigation
<br /> infrastructure; ies
<br /> Public Comment:Many commenters e Adaptations to congregate living Strategies
<br /> requested clarification around the types facilities,including skilled nursing Background:As detailed above,
<br /> and scope of permissible capital facilities, other long-term care facilities, Treasury received many public
<br /> investments in public facilities to meet incarceration settings,homeless comments describing uncertainty about
<br /> pandemic operational needs;ventilation shelters,residential foster care facilities, which eligible use category should be
<br /> improvements in congregate settings, residential behavioral health treatment, used to assess different potential uses of
<br /> health care settings, or other key and other group living facilities, as well funds.As a result,Treasury has re-
<br /> locations;and whether support for as public facilities and schools categorized some uses of funds in the
<br /> prevention and mitigation in congregate (excluding construction of new facilities final rule to provide greater clarity,
<br /> facilities could include facilities for the purpose of mitigating spread of consistent with the principle that uses
<br /> renovations,improvements, or COVID-19 in the facility); and of funds should be assessed based on
<br /> construction of new facilities, or if the • Mitigation measures in small their intended beneficiary. For example,
<br /> facilities must solely be used for businesses,nonprofits, and impacted COVID-19 mitigation and prevention
<br /> COVID-19 response. industries (e.g., developing outdoor serves the general public or specific
<br /> Treasury Response:For clarity, populations within the public.
<br /> Treasury has addressed the eligibility spaces). However,in the interim final rule,
<br /> standard for capital expenditures,or Other clarifications on COVID-19 assistance to small businesses,
<br /> investments in property,facilities, or mitigation:Medical care, supports for nonprofits,and impacted industries to
<br /> equipment,in one section of this vulnerable populations, data systems, implement COVID-19 mitigation and
<br /> Supplementary Information; see section carceral settings.Based on public prevention strategies was categorized in
<br /> Capital Expenditures in General comments and questions received from the respective sections within Negative
<br /> Provisions:Other. In recognition of the recipients following the interim final Economic Impacts. The final rule
<br /> importance of capital expenditures in rule,Treasury is making several further consolidates all COVID-19 mitigation
<br /> the COVID-19 public health response, clarifications on enumerated eligible and prevention within Public Health.
<br /> Treasury enumerates that the following uses in this category. Public Comment:Treasury has
<br /> projects are examples of eligible capital Public Comment.Several commenters received multiple comments and
<br /> expenditures,as long as they meet the requested clarification on eligible uses questions about which eligible use
<br /> standards for capital expenditures in of funds for medical care; Treasury permits the recipient to provide
<br /> section Capital Expenditures in General addresses those comments in the section assistance to businesses and nonprofits
<br /> Provisions:Other: Medical Expenses below. to address the public health impacts of
<br /> • Improvements or construction of Public Comment:Recipients posed COVID-19.
<br /> COVID-19 testing sites and laboratories, questions on the type and scope of Treasury Response:In the final rule,
<br /> and acquisition of related equipment; activities eligible as "supports for these services have been re-categorized
<br /> • Improvements or construction of vulnerable populations to access under COVID-19 mitigation and
<br /> COVID-19 vaccination sites; medical or public health services." prevention to reflect the fact that this
<br /> • Improvements or construction of Treasury Response:Enumerated assistance responds to public health
<br /> medical facilities generally dedicated to eligible uses should be considered in impacts of the pandemic rather than the
<br /> COVID-19 treatment and mitigation the context of the eligible use category negative economic impacts to a small
<br /> (e.g., emergency rooms,intensive care or section where they appear;in this business,nonprofit, or impacted
<br /> units,telemedicine capabilities for case, "supports for vulnerable industry. When providing COVID-19
<br /> COVID-19 related treatment); populations to access medical or public mitigation and prevention services,
<br /> • Expenses of establishing temporary health services"appears in the section recipients can identify the impacted
<br /> medical facilities and other measures to COVID-19 Mitigation and Prevention. entity as small businesses,nonprofits, or
<br /> increase COVID-19 treatment capacity, As such,these eligible uses should help businesses in impacted industries in
<br /> including related construction costs; vulnerable or high-risk populations general. As with all enumerated eligible
<br /> • Acquisition of equipment for access services that mitigate COVID-19, uses,recipients may presume that all
<br /> COVID-19 prevention and treatment, for example,transportation assistance to COVID-19 mitigation and prevention
<br /> including ventilators, ambulances, and reach vaccination sites,mobile programs and services are reasonably
<br /> other medical or emergency services vaccination or testing programs, or on- proportional responses to the harm
<br /> equipment; site vaccination or testing services for identified unless a response is grossly
<br /> • Improvements to or construction of homebound individuals,those in group disproportionate to the type or extent of
<br /> emergency operations centers and homes,or similar settings. harm experienced. Note that capital
<br /> acquisition of emergency response Public Comment:Some commenters expenditures are not considered
<br /> asked whether"enhancement of public "programs and services"and are not
<br /> 75 Coronavirus State and Local Fiscal Recovery health data systems"could include presumed to be reasonably proportional
<br /> Funds,Frequently Asked Questions,as of July 19, investments in software, databases, and responses to an identified harm except
<br /> 2021.https:llhome,.treasury.gov/system/files/1361
<br /> SLFRPFAQ.pdf.Note that programs may provide other information technology resources as provided in section Capital
<br /> incentives to individuals who have already received that support responses to the COVID-19 Expenditures in General Provisions:
<br /> a vaccination if the incentive is reasonably expected public health emergency but also Other.In other words,recipients can
<br /> to increase the number of people who choose to get provide benefits for other use cases and provide any COVID-19 prevention or
<br /> vaccinated or motivate people to get vaccinated
<br /> sooner and the costs are reasonably proportional to long-term capacity of public health mitigation service to small businesses,
<br /> the expected public health benefit. departments and systems. nonprofits,and businesses in impacted
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