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Weekly Update: February 21 – 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:

In partnership with the Levin Center, CSG analyzed ARPA reporting websites in 11 states to evaluate oversite in the allocation of these federal funds in the blog, Oversight of ARPA Spending in the States” and highlights approaches to publishing the information online for public view.

Recent Update Every State Leader Should Know

As noted in the Feb. 7 newsletter, the Infrastructure Investment and Jobs Act was signed by President Joe Biden Nov. 15, 2021. It contains a total investment of $1.2 trillion, including $550 billion in new funding. The U.S Department of Transportation is managing allocations of available funds for roads, bridges, broadband and other infrastructure. CSG analysts have developed written briefs on a number of initiatives in the infrastructure act. Some $40 billion in allocations to states and localities are unavailable because they are tied to the enactment of a federal budget for Fiscal Year 2021-22. Congress has yet to do so, instead sustaining federal operations through a series of continuing resolutions. The current continuing resolution lapses March 11 as negotiations continue in Congress on a budget for the current fiscal year. Until Congress enacts a budget, those infrastructure funds remain unavailable.

News, Updates and Resources

INFRASTRUCTURE INVESTMENT AND JOBS ACT

General

Army Corps of Engineers publishes Fiscal Year 2022 spending plan of $22.8 billion

The Army Corps of Engineers announces studies, projects and programs with funding provided by the Infrastructure Investment and Jobs Act and the 2022 Disaster Relief Supplemental Appropriations Act. The spending plan directs funds to strengthen the national supply chain, support and invest in communities impacted by climate change and advance environmental justice.

White House announces Infrastructure School webinars

Each of the 12 webinars covers major program areas in the IIJA Guidebook. February registration links are listed below. Links for the March sessions will be available later in the month.

  • Public Transportation – Feb. 24, 4-5 p.m. ET |  Register
  • Railroads – Feb. 28, 4-5 p.m. ET | Register
  • Roads, Bridges and Major Projects – March 3, 4-5 p.m. ET
  • Safety – March 8, 4-5 p.m. ET
  • Clean Energy – March 10, 4-5 p.m. ET
  • Water – March 15, 4-5 p.m. ET 
  • Resilience – March 17, 4-5 p.m. ET
  • Environmental Remediation – March 22, 4-5 p.m. ET
  • Broadband – March 24, 4-5 p.m. ET

Commerce

National Telecommunications and Information Administration host infrastructure act technical assistance webinars

These webinars will provide technical assistance for the five broadband programs funded by Infrastructure Investment and Jobs Act:

  • Broadband Equity, Access, and Deployment Program
  • Enabling Middle Mile Broadband Infrastructure Program
  • Digital Equity Act Programs:
    • State Digital Equity Planning Grant Program
    • State Digital Equity Capacity Grant Program
    • Digital Equity Competitive Grant Program

Webinars will be hosted March 9, March 23, April 6, April 27 and May 11. More information about the webinars can be found here and registration here.

Energy

Department of Energy new organizational structure to implement Infrastcuture Investment and Jobs Act programs

This will boost the department’s ability to advance clean energy breakthroughs, accelerate clean infrastructure nationwide and support market-ready solutions to fight the climate crisis. The new structure establishes two undersecretaries: one focused on science and clean energy innovation and the other on clean infrastructure. More information can be found here.

Energy publishes notice of intent and Request for Information on civil nuclear credit program

The program will allow nuclear power plants to stay open if their owners/operators provide sufficient evidence that closing them will increase air pollution. The Request for Information is designed to inform the program’s structure and execution. More information can be found here.

Department of Energy issues Request for Information on the design, construction and operation of new rare earth elements demonstration facility

The rare earth elements demonstration facility would convert fossil fuel waste into a domestic source of critical materials and is supported by $140 million in infrastructure act funding.

Department of Energy requests comments on two information collections for new hydrogen programs

The first is looking for input on the Regional Clean Hydrogen Hubs provisions and requirements, the solicitation process, implementation strategies, equity environmental and energy justice priorities and market adoption and sustainability of the hubs. Comments are due March 8. The second is looking for input on the Clean Hydrogen Electrolysis Program and Clean Hydrogen Manufacturing and Recycling initiatives. Comments are due March 29.

Environment

Environmental Protection Agency gives Congress report on Clean School Bus Program initial implementation

Title XI of Infrastructure Investment and Jobs Act provides $5 billion over five years to replace existing school buses with clean and zero-emission school buses. The report covers applicant eligibility, application prioritization and reporting requirements.

EPA announces $14 million in infrastructure act pollution prevention grants

These grants will help provide states and businesses with information, training and tools to help them implement pollution prevention practices. This funding is the first time the EPA has offered these grants without a match requirement. Proposals are due April 11 and more information can be found here.

Independent Agencies

Federal Communications Commission proposed rule to require internet access service providers to disclose prices, network speed and other information at the point of sale

The FCC published this rule in the Federal Register and comments will be accepted through March 9. More information about the rule can be found here and comments can be made here.

FCC adopts Affordable Connectivity Program Final Rule

The program was established by the Infrastructure Investment and Jobs Act and provides subsidies to low-income households for broadband services and devices. The Final Rule discusses participating providers, verifying applicants, household eligibility and more.

FCC solicits comments on proposed Affordable Connectivity Program outreach and enhanced benefits for those in high cost areas

This proposed rule asks for comments on structuring an outreach grant program, establishing a pilot program that increases awareness and enrollment of eligible households and finding a method for determining the application of the enhanced benefit for those in high cost areas.

Interior

Department of the Interior announces $725 million for abandoned mine land reclamation

Allocation of $11.3 billion in funding to 22 states will be distributed over 15 years. This funding is part of the infrastructure act and is intended to create well-paying jobs and economic opportunities for mining communities.

Transportation

Federal Highway Administration publishes updated Eligibility Guidance and Special Rules Guidance for the Highway Safety Improvement Program

The updated Eligibility Guidance covers eligibility requirements and the Federal Highway Administration priority of reducing fatalities and replaces the Feb. 26, 2016, Highway Safety Improvement Program guidance. The Special Rules Guidance provides insight on the implementation of the High-Risk Rural Roads Special Rule, the Older Drivers and Pedestrians Special Rule and the Vulnerable Road User Safety Special Rule.

Federal Transit Administration publishes partial 2022 Fiscal Year appropriation tables

Although most of the funding is provided at Fiscal Year 2021 levels under the current federal budget Continuing Resolution, funding includes $950 million for State of Good Repair Grants and $50 million for Enhanced Mobility of Seniors and Individuals with Disabilities formula grants financed by the Infrastructure Investment and Jobs Act. The tables can be found here.

Department of Transportation publishes toolkit to aid rural communities in building electric vehicle charging infrastructure

The Infrastructure Investment and Jobs Act provided $7.5 billion for building a nationwide network of electric vehicle chargers. The toolkit for rural communities covers best practices for planning charging networks and how to navigate federal funding.

Transportation publishes report on infrastructure programs that must follow Build America, Buy America provisions in the infrastructure act

The report lists the federal financial assistance programs for infrastructure administered by the Department of Transportation, the domestic content preference laws and requirements that apply to those programs and the programs not currently consistent with the requirements of Section 70914 of Build America, Buy America. The report can be found here.

Federal Railroad Administration requests information for the Corridor Identification and Development Program

The Corridor Identification and Development Program createsa new structure to aid in the development of new, enhanced and restored intercity passenger rail corridors. The Federal Railroad Administration is seeking comments on how it can serve stakeholders and the public. The notice can be found here.

Federal Highway Administration announces Fiscal Year 2022 National Electric Vehicle Formula Program appropriations and resources

The Infrastructure Investment and Jobs Act provided $5 billion over five years and $615 million will be available in Fiscal Year 2022. This funding will go toward creating and maintaining electric vehicle infrastructure. The announcement can be found here

Federal Transit Administration abolishes Equitable Economic Recovery and Workforce Development through Construction Hiring Pilot Program

The rescission was effective Feb. 10 because a provision in the infrastructure act allows funding recipients to establish particular hiring practices. More information can be found here.

Highway administration publishes notice of transition from the Enhancing Highway Workforce Development Opportunities Contracting Initiative

The initiative permitted recipients to establish particular hiring preferences. However, since the infrastructure act provides similar discretion to all recipients, the Federal Highway Administration is transitioning effective immediately. More information can be found here.

CORONAVIRUS                                                                                  

Agriculture

U.S. Department of Agriculture submits information collection request for Emergency Rural Health Care Grant

The request seeks comments on the information included in the Notice of Funding Availability for the $500 million supplied by the American Rescue Plan Act. Comments on the information collection request are due March 4.

USDA announces members of the new Equity Commission required by the American Rescue Plan Act

The Equity Commission and its Subcommittee on Agriculture will recommend policies, programs and actions needed to address equity issues within USDA.

USDA announces $50 million in grants to support the seafood industry

The Seafood Processors Pandemic Response and Safety block program will help seafood processing facilities and vessels respond to COVID-19. More information about the program can be found here and a list of grantees can be found here.

USDA announces $6.5 billion Pandemic Cover Crop program

Pandemic Cover Crop program will provide support for producers impacted by COVID-19 during 2022. It will focus on strengthening outreach to underserved producers and communities and medium agriculture operations.

USDA Food and Nutrition Service releases proposed Final Rule on transitional child nutrition standards for milk, whole grains and sodium

This Final Rule will establish standards to support the provision of nutritious school meals as schools recover from the pandemic. Comments are due March 24. USDA-FNS published a fact sheet on the proposal and an infographic to demonstrate the process. The rule will become effective July 1 and will continue through the school year 2023-24. The Food and Nutrition Service plans to propose long-term standards in Fall 2022 that will take into effect for the 2024-25 school year.

Commerce

Economic Development Administration publishes update on American Rescue Plan programs

The Economic Development Administration is no longer accepting application for the Travel, Tourism, and Outdoor Recreation program due to the number of applications received. Applicants for the Economic Adjustment Assistance and Indigenous Communities Program should contact their economic development representative. The administration has received few Research and Networks Program applications that address critical aspects of research. The update can be found here. The Economic Development Administration also published video recordings from the Build Back Better Regional Challenge virtual conference.

Education

Department of Education issues notices for two ARPA higher education grants

The department announced $198 million available for new grants for Supplemental Support Under the American Rescue Plan to support higher education institutions with the greatest unmet need related to the pandemic. Applications are due and the public comment period ends April 4.

The Department of Education has reopened the application for higher education institutions eligible for Higher Education Emergency Relief Fund and is accepting applications on a rolling basis through March 7.

Department of Education updates Maintenance of Effort Guidance

This guidance is consistent with the Final Rule and allows states to include the Coronavirus Relief Fund and the Coronavirus State Fiscal Recovery Fund to count toward state Maintenance of Effort requirements.

ED updates ARPA materials including:

Health and Human Services

Centers for Medicare and Medicaid Services highlights ARPA Medicaid home and community-based services spending

The document is an overview of upcoming state activities based on spending plans. It includes commonly proposed state initiatives and spending amounts per beneficiary and by state.

Health Resources and Services Administration awards American Rescue Plan funds to community outreach efforts to increase COVID-19 vaccinations

ARPA funding totaling $66.5 million will go to eight grantees to expand vaccination outreach efforts in 38 states. Efforts include mobile vaccination clinics for farmworkers, working with Black churches to bolster vaccine confidence and implementing culturally appropriate outreach campaigns. A list of award recipients and the states they serve can be found here.

Health Resources and Services Administration awards almost $55 million in ARPA funding to increase access to virtual health care through community health centers

This funding will go toward telehealth, remote patient monitoring, digital patient tools and health information technology platforms. More information about the funding can be found here and a list of recipients can be found here.

Department of Health and Human Services publishes Federal Economic Stimulus Report

The report found that federal and state economic stimulus reduced poverty rates by 45% and child poverty rates by 56% in 2021. These reductions were larger for communities with historically high poverty rates.

CMS publishes new Medicaid state plan amendment templates          

Three of these templates are regarding American Rescue Plan COVID-19 coverage mandates and two others relate to Medicaid beneficiaries in clinical trials.

Administration for Children and Families publishes Low-Income Household Water Assistance Program intake benefits toolkit

This Low-Income Household Water Assistance Program toolkit supports recipients by providing procedural considerations related to applications, intake of possible program clients, eligibility determination and benefit determination.

Administration for Children and Families publishes brief on the use of Pandemic Emergency Assistance Funds for Utility Assistance

The Pandemic Emergency Assistance Funds for Utility Assistance provides critical support to children, families and communities. The brief covers the potential for the Pandemic Emergency Assistance Fund to help families affected by COVID-19 and by unusually high heating costs this winter.

Housing

Department of Housing and Urban Development issues guidance on Coronavirus Aid, Relief and Economic Security Act Waiver Expiration

HUD provides guidance documents for Public Housing Authorities on options to help navigate the expiration of the CARES Act Waivers. Each guide covers specific aspects of Public Housing Authority operations like verification, inspection, occupancy, community service and much more.

HUD issues notice on return of Public Housing Assessment Systems

CARES Act waivers allowed HUD to delay Public Housing Assessment Systems assessment and carry over a public housing agency’s last assessment score. The last wavier notice extended most CARES Act waivers through Dec. 31, 2021. This period was not extended.

Independent Agencies

The Federal Communications Commission commits nearly $126 million in Emergency Connectivity Fund support to connect students, schools and libraries to internet services

The FCC is committing approximately $126 million to the Emergency Connectivity Fund program as a ninth wave of funding, bringing the total committed through the program to more than $4.5 billion.

Labor

Department of Labor awards grants to Guam and Maine for pandemic-related employment, workforce and training programs

The Department of Labor announces an incremental award of $1.7 million to the Government of Guam and an initial release of $800,000 to Coastal Counties Workforce Inc. in Maine.

Labor department provides instructions for recovery of overpayments

The Department of Labor letter outlines for state workforce agencies circumstances in which they may waive recovery of overpayments received under the CARES Act Unemployment Compensation program and how states should collect overpayments not eligible.

Transportation

Federal Motor Carrier Safety Administration issues notice of termination of waiver regarding third party commercial driver’s license skills test examiners

The termination went into effect Feb. 3. The Federal Motor Carrier Safety Administration has amended its guidance. Now a state may allow third parties to administer commercial driver’s license knowledge tests if the state adheres to current knowledge test standards and requirements.

Treasury

The Federal Reserve issues report to Congress on the Municipal Liquidity Facility

The Municipal Liquidity Facility was established to help state and local governments better manage cash flow pressures in order to serve households and businesses in their communities. A periodic report to Congress was published Feb. 11, which includes a spreadsheet of facility transaction-specific disclosures.

The Department of the Treasury updates the status of payments to states for distribution to Non-Entitlement Units of local government

The updated table can be found here.

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