January 7, 2022
U.S. Treasury Issues Final Rule for State and Local Fiscal Recovery Funds: Overview of the Final Rule
The Final Rule becomes effective on April 1, 2022.
On January 6, 2022, the U.S. Department of the Treasury (Treasury) issued its Final Rule regarding the State and Local Fiscal Recovery Funds (SLFRF) program funded by the American Rescue Plan Act (ARPA). The Final Rule adopts and amends the Interim Final Rule that was issued on May 17, 2021. Treasury describes the Final Rule as delivering “broader flexibility and greater simplicity in the program, responsive to feedback in the comment process.”
Effective Date; Applicability. The Final Rule becomes effective on April 1, 2022. Funds spent consistent with the requirements of the Interim Final Rule are compliant so long as the Interim Final Rule is in effect, and funds spent consistent with the Final Rule also are compliant regardless of when the funds were spent.