Program
COVID-19 Federal Assistance e311Topics
Compliance & Reporting, Fund Planning & AllocationFunding Source
American Rescue Plan ActUnder the American Rescue Plan Act (“ARP”), what factors will be utilized to determine the amount of funds available to pay public sector staff in a municipality’s response to COVID-19? What documentation will be required?
According to the U.S. Department of the Treasury’s (“Treasury”) Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Final Rule, eligible uses include “payroll and covered benefits for public safety, public health, health care, human services, and similar employees of a recipient government, for the portion of the employee’s time that is spent responding to COVID-19.”[1] Municipalities may also consider pursuing the Federal Emergency Management Agency (“FEMA”) Public Assistance (“PA”) program for overtime costs incurred to respond to the COVID-19 pandemic from January 20, 2021 through December 31, 2021.[2]
The Final Rule also identifies the following regarding documentation:
Recipients should maintain records on how they developed these estimates and need not track staff hours. Treasury notes that records retained can include payroll records (e.g., the number and type of staff in various positions), attestations from supervisors or staff (e.g., self-attestation of share of time spent on COVID-19), or regular work product or correspondence (e.g., calendars, e-mail correspondence, documents, and other electronic records).[3]
A municipality’s allocation of CSLFRF and the roles held by public sector staff dictate the amount of funds available for this use. For example, the Final Rule permits usage of CSLFRF for “public health and safety staff primarily dedicated to responding to COVID-19.”[4] Treasury's Frequently Asked Questions ("FAQ") provide additional information.[5] In addition, Treasury encourages municipalities to consider the guidance issued in the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule.[6]
Last Revised: January 31, 2022
[1] Treas. Reg. 31 CFR 35 at 172, available at: https://home.treasury.gov/system/files/136/SLFRF-Final-Rule.pdf.
[2] FEMA, FEMA Advisory FEMA Extends Full Funding for COVID-19 Emergency Costs, available at: https://content.govdelivery.com/attachments/USDHSFEMA/2021/08/17/file_attachments/1908569/FEMA_Advisory_FEMA_Extends_Full_Funding_for_COVID-19_Emergency_Costs_20210817.pdf.
[3] Treas. Reg. 31 CFR 35 at 175, available at: https://home.treasury.gov/system/files/136/SLFRF-Final-Rule.pdf.
[5] Coronavirus State and Local Fiscal Recovery Funds, Frequently Asked Questions (January 2022), available at: https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf.
[6] U.S. Department of the Treasury, Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule, available at: https://home.treasury.gov/system/files/136/SLFRF-Compliance-Statement.pdf.