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Weekly Update: January 10 – News and Resources for State Leaders

This week’s newsletter includes recent developments that every state leader needs to know regarding the American Rescue Plan, the Infrastructure Investment and Jobs Act and the development of the federal budget.

New This Week:

The U.S. Department of the Treasury issues Final Rule for State and Local Fiscal Recovery Funds program that allows state and local governments to meet immediate pandemic needs as well as invest in long-term recovery.

The State and Local Fiscal Recovery Fund is designed to ensure state and local governing bodies can sustain important services during the pandemic, including providing health care and vaccines, mitigating economic impacts, supporting families and building a strong recovery. As part of this program, the Department of the Treasury has distributed more than $245 billion. The Final Rule provides governments with simpler rules providing greater discretion in the use of funds:  

  • Establishes a “standard allowance” of up to $10 million states may spend on government services instead of using the Treasury formula to calculate revenue loss. The Treasury formula can still be used and has been revised from the Interim Final Rule to be more flexible.
  • Provides broader discretion in determining households, communities, small businesses and industries impacted and disproportionately impacted by the COVID-19 health emergency and expands the eligible use of funds.
  • Provides a broader menu of options for states to restore and bolster public sector capacity.
  • Provides clarity for recipients regarding use of funds to invest in capital expenditures as part of their public health or economic recovery response.
  • Expands the way states can provide premium pay for essential employees.
  • Broadens the use of funds for investments in water and sewer infrastructure.
  • Expands eligible use of funds to build broadband infrastructure and to ensure equitable access.
  • Maintains the Interim Final Rule’s restrictions on use in other areas with additional clarifications.

The full text of the Final Rule can be found here, and a more user-friendly overview can be found here.

The Department of the Treasury is hosting webinars to provide an overview and answer questions on the Final Rule. A recording of the webinar will be posted online. Interested individuals can register to attend a webinar, which will be held Jan. 10 at 4 p.m. EST and again Jan. 12 at 1 p.m. EST.

  • Before the holidays, the Senate indefinitely postponed action on President Biden’s Build Back Better Act — a series of measures related to education, health care, employment, the environment and taxation. The bill passed the House on Nov. 19. In the absence of Republican support, all 50 Senate Democrats must support the bill’s passage. Two Democratic senators currently do not. Talks continue among the Biden administration and Senate leadership. No vote is currently scheduled.
  • One of the components of Build Back Better is an extension of increases to federal child tax credits. The American Rescue Plan Act increased the existing credit from $2,000 per child to $3,000 per child for children over the age of six and from $2,000 to $3,600 for children under the age of six. These increases expired in December.   

News, Updates and Resources

U.S. Department of the Treasury publishes State and Local Fiscal Recovery Funds reports

State and local government Interim Reports and Recovery Plan Performance Reports on the use of State and Local Fiscal Recovery Funds can be found here. The Interim Reports reflect the reported obligations and expenditures. The Recovery Plan Performance Reports provide more context on the planned use of funds to achieve a strong and equitable economic recovery. The next project and expenditure reports are to be submitted to the U.S. Department of the Treasury by Jan. 31, 2022.

INFRASTRUCTURE INVESTMENT AND JOBS ACT

ENERGY

U.S. Department of Energy creates Office of Clean Energy Demonstrations

This new office was established to assist rural areas and disadvantaged communities with clean energy initiative development and implementation. More information can be found here.

INTERIOR

Bureau of Land Management will host a webinar on remediating orphaned wells

The new program provides $250 million to revive orphaned wells on federal lands. The webinar will cover the plan in general and the implementation plan in particular. More information about the webinar is available here.

FEDERAL COMMUNICATIONS COMMISSION

FCC launches Affordable Connectivity Program and provides guidance

The $14.2 billion Affordable Connectivity Program replaces the Emergency Broadband Benefit Program and will provide low-income households with subsidies for broadband service and related devices. The new program was launched Dec. 31, 2021. The guidance from the FCC makes clarifications such as households enrolled in the program may receive a support amount of $30 or up to $75 for those on qualifying Tribal lands.

COVID-19

COMMERCE

Economic Development Administration announces $5 million in American Rescue Plan Act funding will support territory-wide economic development planning

These funds will assist with economic recovery and incentivize business growth. More information about the grants and the territories that received them can be found here.

EDUCATION

U.S. Department of Education approves more American Rescue Plan Act Elementary and Secondary School Emergency Relief Plans

The plans provide information on how states intend to use these funds. Also updated:

Department of Education seeks comments on proposal to require each state to post maintenance of equity information for each applicable local education agency on each state’s educational agency website

Comments on this proposed requirement are due Feb. 2. The full proposal can be found here

Biden administration extends student loan pause through May 1, 2022

This pause includes student loan repayment, interest and collections. The Department of Education press release can be found here.

Department of Education Office of Inspector General publishes review of state plans for use of governor’s emergency education relief funds

The report covers how states plan to use funds within three authorized categories: local educational agencies, institutions of higher education and educated-related entities. The report can be found here.

Department of Education publishes template for addendums to the Every Student Succeeds Act

The template is for state educational agencies to amend their Every Student Succeeds Act plan to incorporate one-year’s changes due to COVID-19 emergency. The template can be found here.

HEALTH

Centers for Medicare and Medicaid Services publishes guidance on community-based mobile crisis intervention services

Projects may receive an increased match of 85% for expenditures on qualifying community-based mobile crisis intervention services. The higher match would be available for the first 12 fiscal quarters within the five-year period if states meet the qualifying conditions outlined in statute. More guidance can be found here.

Department of Health and Human Services releases Week One state allocations of two new oral antiviral drugs to treat COVID-19

State allocations of molnupiravir can be found here and allocations of paxlovid can be found here.

HUMAN SERVICES

Administration for Children and Families releases American Rescue Plan Act Child Care Stabilization Grant report and instructions

The form will facilitate collection of provider-level data for states and territories. The first reports are due Jan. 31. The electronic report, as well as resources and instructions, can be found here.

The U.S. Department of Health and Human Services announces $48 million in ARPA funding to expand public health capacity in rural and tribal lands

This funding will go toward health care job development, training and placement. The press release with more information on the funding can be found here.

HHS provides guidance on preventing discrimination in COVID-19 vaccine programs

These guidelines intend to ensure equitable distribution of vaccines and prohibit discrimination based on race, color or national origin. The guidance can be found here.

HOMELAND SECURITY

Administration issues directive to expand or create COVID-19 state testing sites at 100% federal share

States, tribes and territories can submit a request to the Federal Emergency Management Agency for COVID-19 testing sites. FEMA will then issue an assignment to HHS to establish a testing site and FEMA will reimburse for all expenses. The memorandum with more information can be found here.

HOUSING

U.S. Department of Housing and Urban Development announces availability of Community Planning and Development waivers to help prevent the spread of COVID-19

The programs covered include:

  • Continuum of Care
  • Emergency Solutions Grants Program
  • Youth Homelessness Demonstration Program
  • Housing Opportunities for Persons with AIDS

More information regarding the requirements and notification process can be found here.

HUD amends the process to define high performing public housing agencies for Fiscal Year 2021 capital fund formula grant awards

The Coronavirus Aid, Relief and Economic Security Act provides HUD with broad authority to waive or establish alternative requirements for public housing programs. This authority is described here.

NUTRITION

Food and Nutrition Services gives update and tips for Child and Adult Care Food Program flexibilities for virtual monitoring and supply chain disruptions
Some tips include planning ahead, developing a standard process and considering a hybrid approach. You can find more guidance and tips here.

TREASURY

Office of Inspector General publishes audit of the Community Development Financial Institution Fund’s implementation of the CDFI Rapid Response Program

The audit covers the award term and condition for recipient integrity and performance and can be found here.

INDEPENDENT AGENCIES

Federal Communications Commission publishes more awards for COVID-19 telehealth Round 2

The FCC approved 68 more applications for funding, bringing the total commitment to $42,702,383 for Round 2. The news release and public notice can be found here.

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