This week’s fiscal policy e-newsletter from The Council of State Governments includes recent developments that every state leader needs to know regarding infrastructure funding for environmental resilience, opioid settlements, updated treasury guidance and new grant announcements.
New This Week:
- The latest issue of CSG Capitol Ideas includes an article on the various investments states are making using ARPA funds and the top issues state policymakers will face in the months ahead.
- The Infrastructure Investment and Jobs Act contains $1.2 trillion in federal funding for various infrastructure purposes. In the most recent analysis, CSG breaks down the $131 billion in funding for environmental resilience, which includes $63 billion for water infrastructure and $21 billion for pollution remediation.
Recent Update Every State Leader Should Know
- President delivers State of the Union address. In his March 1 State of the Union address to a joint session of Congress, President Joe Biden presented a number of policy plans and proposals. CSG analysts took a quick look at some of the portions of the president’s remarks most resonant with state policymakers.
- State and local government participation determined sufficient for opioid settlement of $26 billion to proceed. Three pharmaceutical companies involved in the multi-state opioid settlement determined that there was sufficient state and local government participation to proceed with the terms of the settlement on Feb. 25, 2022. The settlement is unique as it distributes funds directly to state and local governments for relief programs and to counter the impact of the opioid epidemic. Payments to state and local governments from the escrow account could begin as early as May 2022. Many states already have started the planning process for the expenditure of funds over the next 18 years.
- State and local leaders urge Congress to increase flexibility for COVID-19 relief funds. The Council of State Governments joined with other six organizations in a letter to Congress asking for increased flexibility in investing ARPA funds to allow it to be directed to infrastructure and disaster relief. The letter also called for the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act be included in the appropriations package for Fiscal Year 2022.
News, Updates and Resources
INFRASTRUCTURE INVESTMENT AND JOBS ACT
GENERAL
White House announces expansion of funds for clean transit buses, school buses and trucks
Today, the Biden-Harris administration released the Clean Transit Fact Sheet that describes accelerated approach to improve connectivity and air quality with increased funding and proposed rule change to reduce heavy-duty vehicle emissions. Using resources from the infrastructure act and ARPA, federal agencies will provide additional support using various means to electrify buses, reduce emissions and clean port operations.
- $1.1 billion of the Low- and No-Emission Transit Vehicle Program.
- $372 million additional for the Bus and Bus Facilities program.
- $2.2 billion from ARPA to 35 transit agencies in 18 states.
- $17 million electric zero- and low-emission school buses for rebates and replace old diesel school buses.
Registration links available for upcoming White House Infrastructure Investment and Jobs Act webinars
The webinars cover 12 major program areas in the Infrastructure Investment and Jobs Act Guidebook; registration is open for March sessions:
- Safety – March 8, 4-5 p.m. ET
- Clean Energy and Power – 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
$277 million in grants awarded by the National Telecommunication and Information Administration
Funded by the 2021 Consolidated Appropriations Act, 13 grants to state and local governments will be used to service over 133,000 households.
ENVIRONMENT
Environmental Protection Agency to invest $1 billion to restore Great Lakes
The EPA will use the majority of this funding to restore severely deteriorated areas to provide clean water and other environmental and health benefits to citizens in the area. This investment will allow the EPA to complete work in 22 of 25 remaining Areas of Concern by 2030. A comprehensive list of projected work completion and delisting dates can be found here.
EPA Local Government Advisory Committee espouses recommendations for investments in communities, climate and environmental justice
Information regarding recommendations can be found here.
HEALTH AND HUMAN SERVICES
Report on financial assistance programs relating to infrastructure shared by Department of Health and Human Services
Federal awarding agencies are required by the infrastructure act to recognize and alert Congress to federal financial assistance programs for infrastructure conducted by the awarding agency. More information can be found here.
INTERIOR
Spend plans submitted by bureaus in the Department of the Interior for Fiscal Year 2022
Departments submitted plans for executing the Infrastructure Investment and Jobs Act. This effort will help address pollution, generate jobs and improve local economies. Spending plans mapping efforts to plug and reclaim abandoned oil and gas wells as well as rehabilitate ecosystems also were submitted. Further information regarding spending plans can be found here.
LABOR
Compliance Webinar provided by the Department of Labor for contractors, stakeholders and workers
An interactive webinar regarding labor standards for infrastructure projects was presented by the Department of Labor. The Presentation on Davis-Bacon Act and Infrastructure law projects intended to help stakeholders understand responsibilities and compliance requirements.
TRANSPORTATION
$1 billion grant opportunity issued by Federal Aviation Administration
A $5 billion pool of funds is now available for airport terminal development projects to address outdated infrastructure. The first $1 billion will be used to fund projects that enhance airfield safety. Applications are due March 28.
Request for nominations for Alternative Fuel Corridors for designation
The Federal Highway Administration is designating a national network of plug-in electric vehicle charging and hydrogen, propane and natural gas fueling along national highway system corridors. The Alternative Fuel Corridors will be determined by nominations that end May 13. The Infrastructure Investment and Jobs Act funds two programs that will focus investments on alternative fuel ($2.5 billion over five years) and electric vehicle charging infrastructure ($5 billion over five years). Read more from CSG analysts about funding for electric vehicles here.
Department of Transportation announces grant opportunity of $450 million for Port Infrastructure Development Program
The Department of Transportation will award $450 million annually on a competitive basis for coastal seaports, inland river ports and Great Lakes ports. Applications are due May 16 and more information can be found here.
Webinar regarding changes to Public Transportation Agency Safety Plan hosted by the Federal Transit Administration
A letter detailing information covered in the webinar held March 1 can be found here.
Eno Center for Transportation hosts webinar on electric vehicle charging networks
Electric Vehicle Charging Networks: Strategies, Data and Models for States Webinar addressed state policy implications of the infrastructure act and plans for an electric future and is available for review.
Memorandum of Understanding regarding electric vehicle infrastructure deployment signed
This MOU lays out a structure for collaboration among federal and state agencies to guarantee investments in charging station infrastructure are carried out efficiently and equitably. This MOU was signed by the American Association of State Highway and Transportation Officials, National Association of State Energy Officials and Joint Office of Energy and Transportation.
INDEPENDENT AGENCIES
Federal Communications Commission announces public hearing on broadband consumer labels
The purpose of the hearing is to determine the effectiveness of the current transparency rule and provide necessary background information for the new label requirement. The first hearing will be on March 11, 1:30 p.m. ET. The news brief regarding this hearing can be found here. It can be streamed for free at FCC.gov/live. Questions can be submitted to the email [email protected]. These meetings are required by the Infrastructure Investment and Jobs Act.
CORONAVIRUS
National Emergency regarding COVID-19 continues
The national public health emergency designated in March 2020 due to the global COVID-19 pandemic is continuing in effect past the projected deadline of March 1, 2022.
TREASURY
State and Local Fiscal Recovery Fund guidance updated
Guideline updates for Compliance and Reporting take effect for the next Project and Expenditure Report due April 30.
Guidance on Homeowner Assistance Fund updated
The Homeowner Assistance Fund update touches on usage of program income, administrative expenses, household income verification, housing counseling services, and eligible use of funds.
Emergency Rental Assistance demographics and monthly spending posted
Quarterly data and 2021 information can be found here and the press release can be found here.
Historic Equity Measurements for American Business Investments Program launched
A demographic information collection effort to measure equity outcomes for small businesses supported by the State Small Business Credit Initiative has been launched. This information will be used to strengthen the program’s dedication to increasing access to capital for businesses operated by socially and economically disadvantaged individuals.
Deadline for technical assistance applications extended for State Small Business Credit Initiative
The State Small Business Credit Initiative deadline has been extended to June 30 and guidelines are to be published soon.
Non-entitlement Units payment status updated
A status update has been posted regarding the extension for states to provide non-entitlement units with distributions from their Coronavirus State and Local Fiscal Recovery Fund.
Coronavirus Relief Fund Closeout Procedures Guide published by Office of Inspector General
The Closeout Procedures Guide addresses prime recipient quarterly grant solutions submissions. The deadline for quarterly reports has been extended to Sept. 30 and final reports are due Dec. 31.
Frequently Asked Questions addressing reporting requirements for Homeowner Assistance Fund updated
FAQs and guidance on the Required Interim Reports have been updated and a user guide was released.
Capital Projects Fund Webinar addresses challenges due to COVID-19
This webinar focused on challenges in rural America, tribal communities and low-to-moderate income communities. The webinar recording and presentation material are available.
AGRICULTURE
U.S. Department of Agriculture requests comments regarding information collection for Farm and Food Workers Relief grant program
This $665 million grant program would provide funding to food processors, distributors and producers to address the impact of COVID-19. The USDA requests information from state and local governments regarding Farm and Food Workers Relief grant program by March 25, which can be made here. Applications are due March 10 and more information regarding the program can be found here.
USDA commits $215 million to strengthen food supply chain
Of this funding, $150 million in grants for the Meat and Poultry Processing Expansion program will be available: $40 million for training and workforce development will be provided by the National Institute of Food and Agriculture, and $25 million will be allocated by the Agricultural Marketing Service for technical assistance for grant applications and other purposes. Register here for a webinar regarding this funding March 7 at 2:00 p.m. ET.
Formula Shortage Guidance for waivers with Special Supplemental Nutrition Program for Women, Infants, and Children
Food and Nutrition Service provides guidelines in the context of shortages due to recalls of infant formula and supply chain issues due to COVID-19. Information can be found regarding vendor exchanges, maximum monthly allowances and medical documentation.
Information regarding Child Tax Credit and Earned Income Tax Credit released by Food and Nutrition Service
Communication to promote the Child Tax Credit and Earned Income Tax Credit has been sent to state agencies asks Supplemental Nutrition Assistance Program offices to share with SNAP recipients as both credits were expanded by the ARPA to support low-income families.
COMMERCE
Good Jobs Challenge applicant list shared by the Economic Development Administration
The Good Jobs Challenge was designed to develop holistic workforce systems that will result in good-paying jobs. The Economic Development Administration has received over 500 applications and expects to choose 25-50 projects.
EDUCATION
Internal Revenue Service updates Higher Education Emergency Grant FAQs
The Higher Education Emergency Relief Fund III provides $39.6 billion in funding to support institutions of higher education during the COVID-19 pandemic. The HEERF III Fact Sheet has new FAQs that include a notation that higher education institutions do not have reporting requirements when using funds to pay students’ overdue balances for tuition and fees. These payments are not included in a students’ gross income.
State Elementary and Secondary School Emergency Relief plans, materials and links for ARPA updated by Department of Education
Updated state plans can be found here and awards for ARPA’s Emergency Assistance to Non-Public Schools can be found here.
FAQs address effects of COVID-19 on accountability systems
This document is required under the Elementary and Secondary Education Act and can be found here.
Fact Sheet highlights services to be provided to students with disabilities during the COVID-19 pandemic.
The Office of Civil Rights published this fact sheet to remind public schools of their responsibilities under the Rehabilitation Act to provide evaluations to students and resulting compensatory services.
Fact Sheet outlines how states use ARPA funds on career and technical education
This fact sheet released by the Department of Education highlights how states and school districts are using ARPA funds to enhance learning by expanding CTE which will increase rates of on-time graduation.
Elementary and Secondary School Emergency Relief maintenance of effort waiver request materials and links updated by the education department
An updated list of awards and links can be found here and additional details and resources can be found here.
Department of Education to host webinar regarding COVID-19 assistance for higher education
This webinar for Supplemental Support under the American Rescue Plan funding will be held March 8. Contact [email protected] for more information.
HEALTH AND HUMAN SERVICES
Updates regarding antigen testing in long-term care facilities published by the Centers for Disease Control
The timeline for confirmatory testing was clarified and guidance was streamlined. Details and resources can be found here.
Department of Health and Human Services provides $560 million in Provider Relief Funds to health care providers affected by COVID-19.
This funding will add to the $19 billion already distributed from the Provider Relief Fund since November 2021.
Low Income Household Energy Assistance Program reporting and data collection altered by the Office of the Administration of Children and Families
A letter containing draft changes to the Low Income Household Energy Assistance Program quarterly and annual report forms was posted by the ACF. Changes made in response to public feedback are highlighted. Notice of a new Federal Register has been issued and comments are due within 30 days of publication.
White House provides Fact Sheet to address needs of people with disabilities and older adults in response to COVID-19
This document details eight strategies to keep equity and accessibility for COVID-19 response and recovery for individuals with disabilities and older adults.
Guidance on Navigating Coronavirus Aid, Relief, and Economic Security Act waiver expiration posted by Department of Housing and Urban Development
Guidelines outline planning considerations, other available options and instructions on how to proceed as the CARES Act waiver expires.
TRANSPORTATION
INDEPENDENT AGENCIES
$86 million in Emergency Connectivity Funding provided by Federal Communications Commission
This is the 10th wave of funding provided to students and libraries for broadband services, bringing the total to over $4.6 billion. The date by which recipients must use this funding was extended by one year to June 30, 2023.