Treasury Issues Final Rule for State and Local Fiscal Recovery Funds Program to Support the Ongoing COVID Response

The US Department of the Treasury issued the Final Rule for the State and Local Fiscal Recovery Funds (SLFRF) program, enacted as a part of the American Rescue Plan, which delivers $350 billion to state, local, and Tribal governments to support their response to and recovery from the COVID-19 pandemic. The final rule – which takes effect on April 1, 2022 – provides state and local governments with increased flexibility to pursue a wider range of uses, as well as greater simplicity so governments can focus on responding to the crisis in their communities and maximizing the impact of their funds. The Treasury has broadened eligible broadband infrastructure projects – understanding the unique challenges facing each state and locality in delivering high-speed broadband to their communities. Recipients may pursue investments in broadband infrastructure meeting certain technical standards as well as an expanded set of cybersecurity investments. In addition, the final rule determines affordability programs are an appropriate eligible use to respond to the negative economic impacts of the pandemic and the Treasury is maintaining the enumerated eligible use for assistance to households for internet access and digital literacy programs.