Understanding the State & Local Fiscal Recovery Funds Final Rule
On January 6, 2022, the U.S. Department of the Treasury (Treasury) issued the final rule to implement the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, which was established under the American Rescue Plan Act of 2021 (ARPA). This final rule replaces the interim rule released on May 10, 2021, and goes into effect April 1, 2022.
The SLFRF program was created to provide state, local, county, and tribal governments with resources to support families and businesses struggling due to the pandemic, maintain public services, and build strong recovery efforts. These particular ARPA funds could be used to:
- Replace lost public sector revenue
- Respond to the public health and negative economic impacts of the pandemic
- Provide premium pay for essential workers
- Invest in water, sewer, and broadband infrastructure
The final rule was released in response to comments received about the interim final rule to provide clarity and additional guidance. However, Treasury’s 437-page document can be a bit intimidating. SLFRF recipients have a lot of questions about what the final rule means for them and how it affects their federal funds.
For a high-level summary of some of the main differences between the interim rule and the final rule of the SLFRF program, click below.
You also can sign up for BKD’s complimentary, CPE-eligible webinar that can offer more details.
Note that these resources are not intended to cover all aspects of the final rule. Readers are encouraged to study the official final rule and seek help as necessary.
If you need assistance, please contact your advisor or submit the Contact Us form below.