Agenda - Council - 09/13/2022 - Laserfiche WebLink

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The final rule makes two adjustments for operational purposes. First, the final rule provides that Treasury expects to make all second tranche payments to states available beginning 12 months from the date that funding was first made available by Treasury (May 10, 2021) regardless of when each individual state submitted its initial certification. This should increase clarity and consistency on the timing of second tranche payments for both states and Treasury. Second, also to ease recipient states' administrative burden, the final rule strikes a requirement from the interim final rule that states must certify for their second tranche payments and file all required reports at least 30 days prior to the date on which their second payment is made available. The final rule simply requires that states certify for their second tranche payment and file all required reports before receiving their second tranche payment, with no 30 day wait period required. B. PAYMENTS TO NONENTITLEMENT UNITS OF LOCAL GOVERNMENT (NEUs) AND UNITS OF LOCAL GOVERNMENT (UGLGs) WITHIN NoN-UGLG COUNTIES The interim final rule established requirements related to distributions of SLFRF funds by states and territories to NEUs and UGLGs within non-UGLG counties. Specifically, the interim final rule provided that the total distribution to an NEU cannot exceed 75 percent of the most recent budget for the NEU (the 75 percent budget cap); a requirement set forth in section 603(b)(2)(C)(iii) of the Social Security Act. The interim final rule Supplementary Information defined the NEU's budget for purposes of calculating the 75 percent budget cap as the NEU's "most recent annual total operating budget, including its general fund and other funds, as of January 27, 2020." The interim final rule further provided that states and territories must permit 350