Coronavirus State and Local Fiscal Recovery Funds: Final Rule Summary

On January 6, 2022, The U.S. Department of the Treasury (Treasury) adopted a Final Rule implementing the Coronavirus Fiscal Recovery Funds (FRF). As a part of the American Rescue Plan Act (“ARPA”), the FRF delivers $350 billion to state, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency.

On August 11, 2021 we issued a guidance memorandum providing an overview of the Interim Final Rule. Now that the Final Rule has been published, this update will provide a summary of its most salient provisions, as well as highlighting any changes from the Interim Final Rule.

Recipients of FRF must comply with the Final Rule beginning on its effective date of April 1, 2022.

Counties can choose to either use funds according to the Interim Final Rule or the Final Rule until April 1. After that date, the Final Rule must be followed. Recipients may continue to obligate and expend funds in a manner consistent with the Interim Final Rule before April 1, 2022 or obligate and expend funds in a manner consistent with the Final Rule. Treasury will not enforce the Interim Final Rule to the extent that the recipient changes its planned uses of FRF funds in a manner consistent with the Final Rule.

Read the full February 4, 2022 Final Rule Summary by WCA General Counsel Attolles Law, s.c. here.