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up new programs and reporting mechanisms to meet reporting and compliance requirements. For <br />example, Treasury has permitted recipients to use "categorical eligibility" when delivering <br />assistance to particular groups, such as impacted or disproportionately impacted households. <br />In making implementation choices, Treasury has hosted numerous consultations with a <br />diverse range of direct recipients— states, cities, counties, and Tribal governments along with <br />various communities across the United States, including those that are underserved. Furthermore, <br />Treasury has made clear in guidance that SLFRF funds may be used to cover certain expenses <br />related to administering programs established using SLFRF funds.397 <br />Executive Order 13132 <br />Executive Order 13132 (entitled Federalism) prohibits an agency from publishing any <br />rule that has federalism implications if the rule either imposes substantial, direct compliance <br />costs on state, local, and Tribal governments, and is not required by statute, or preempts state <br />law, unless the agency meets the consultation and funding requirements of section 6 of the <br />Executive Order. This final rule does not have federalism implications within the meaning of the <br />Executive Order and does not impose substantial, direct compliance costs on state, local, and <br />Tribal governments or preempt state law within the meaning of the Executive Order. The <br />compliance costs are imposed on state, local, and Tribal governments by sections 602 and 603 of <br />the Social Security Act, as enacted by the ARPA. Notwithstanding the above, Treasury has <br />engaged in efforts to consult and work cooperatively with affected state, local, and Tribal <br />government officials and associations in the process of developing the interim final rule and this <br />' See Coronavirus State and Local Fiscal Recovery Funds, Frequently Asked Questions, 10.2, as of July 19, 2021; <br />https://home.treasury.gov/system/files/1 3 6/SLFRPFAQ.pdf. <br />400 <br />