Laserfiche WebLink
effective way to mitigate declines in jobs and output during an economic downturn.391 Absent <br />such fiscal relief, fiscal austerity among state, local, and Tribal governments could exert a <br />prolonged drag on the overall economic recovery, as occurred following the 2007-2009 <br />recession.392 <br />This final rule provides benefits across several areas by implementing the four eligible <br />use categories, as defined in statute: strengthening the response to the COVID-19 public health <br />emergency and its negative economic impacts; replacing lost revenue to ease fiscal pressure on <br />state, local, and Tribal governments that might otherwise lead to harmful cutbacks in <br />employment or government services; providing premium pay to essential workers; and making <br />necessary investments in water, sewer, and broadband infrastructure. <br />These benefits are achieved in the final rule through a broadly flexible approach that sets <br />clear guidelines on eligible uses of SLFRF funds and provides state, local, and Tribal <br />government officials discretion within those eligible uses to direct SLFRF funds to areas of <br />greatest need within their jurisdiction. While preserving recipients' overall flexibility, the final <br />rule includes several provisions that implement statutory requirements and will help support use <br />of SLFRF funds to achieve the intended benefits. Preserving flexibility for recipients not only <br />serves an important public policy goal by allowing them to meet particularized and diverse needs <br />of their local communities but also enhances the economic benefits of the final rule by allowing <br />recipients to choose eligible uses of funds that provide the highest utility in their jurisdictions. <br />In implementing the ARPA, Treasury has also prioritized supporting underserved <br />communities that have been disproportionately impacted by the pandemic. The SLFRF program <br />391 See, e.g., Gabriel Chodorow-Reich et al., Does state Fiscal Relief During Recessions Increase Employment? <br />Evidence from the American Recovery and Reinvestment Act, 4 American Economic Journal 118-145 (2012) <br />http://dx.doi.org/10.1257/pol.4.3.118. <br />392 See, e.g., Fitzpatrick, supra note 262. <br />382 <br />