Coronavirus State and Local Fiscal Recovery Funds for Tribal Governments

The Coronavirus State and Local Fiscal Recovery Funds delivers $20 billion in funding for Tribal governments.

These funds represent an historic investment in Indian Country and provide a substantial infusion of resources to

  • Fight the pandemic and support households and businesses in Indian Country struggling with its economic impacts
  • Maintain vital public services, even amid declines in revenue for Tribal governments resulting from the crisis
  • Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity

ELIGIBLE USES FOR CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS

The Coronavirus State and Local Fiscal Recovery Funds provide eligible state, local, territorial, and Tribal governments with a substantial infusion of resources to meet pandemic response needs and rebuild a stronger and more equitable economy as the country recovers. Recipients may use SLFRF funds to:

  • Replace lost public sector revenue, using this funding to provide government services up to the amount of revenue loss experienced due to the pandemic
  • Respond to the far-reaching public health and negative economic impacts of the pandemic, by supporting the health of communities, and helping households, small businesses, impacted industries, nonprofits, and the public sector recover from economic impacts
  • Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical sectors
  • Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, to support vital wastewater and stormwater infrastructure, and to expand affordable access to broadband internet 

The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction to meet local needs within these four separate eligible use categories.

Within these categories of eligible uses, Tribal governments have broad flexibility to decide how best to use this funding to meet the needs of their local communities. Further, in recognition of the pandemic's disproportionate public health and economic impacts in Tribal communities, the SLFRF program provides an expanded set of eligible services when provided by a Tribal government.

FINAL RULE

Funding from the Coronavirus State and Local Fiscal Recovery Funds is subject to the requirements specified in the Final Rule released by Treasury on January 6, 2022. Treasury released an Overview of the Final Rule, which provides a summary of major rule provisions to assist recipients and stakeholders. Treasury also released a Tribal government fact sheet, which contains highlights of the final rule relevant to Tribal governments.

The Final Rule Tribal webinar and slide presentation provide an introduction and summary of the Final Rule.

The Final Rule takes effect on April 1, 2022, though Tribal governments can choose to take advantage of its flexibilities and simplifications now, ahead of the effective date. Tribal governments may consult the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule for more information on compliance with the Interim Final Rule and the Final Rule.

The Final Rule builds on the program’s successes and implementation efforts so far. In May 2021, Treasury published the Interim Final Rule (IFR) to govern eligible and ineligible uses of funds (as well as other program provisions), sought feedback from the public on these program rules, and began to distribute funds. The IFR went immediately into effect in May, and since then, governments have used SLFRF funds to meet their immediate pandemic response needs and to begin building a strong and equitable recovery.

As governments deployed this funding, Treasury carefully considered the feedback provided through its Tribal Consultation on the Interim Final Rule held on August 2, 2021, with 443 attendees, and through the public comment process on the Interim Final Rule and in other forums. Treasury received over 1,500 comments, participated in hundreds of meetings, and received correspondence from a wide range of governments and other stakeholders. On January 6, 2022, Treasury released the Final Rule, which delivers broader flexibility and greater simplicity in the program, responsive to feedback in the comment process.

A few core improvements included in Final Rule are:

  • Broader set of uses that are available to respond to the pandemic’s public health and economic impacts on households, small businesses, and others, including capital expenditures
  • Major simplification for thousands of recipients through the $10 million revenue loss standard allowance
  • Greater flexibility in eligible broadband investments to address challenges with access, affordability, and reliability, as well as the addition of numerous eligible water and sewer infrastructure investments
  • More streamlined options to provide premium pay through broadening the share of eligible workers who can receive premium pay without additional justification

TRIBAL ALLOCATION METHODOLOGY

The American Rescue Plan Act of 2021 (the "Act") allocates $20 billion to Tribal governments, directing that (i) $1 billion is to be allocated equally among eligible Tribal governments and (ii) $19 billion is to be allocated to Tribal governments in a manner determined by the Secretary of the Treasury.

Treasury has developed the Coronavirus State and Local Fiscal Recovery Funds Tribal Government Allocation Methodology , which incorporates important feedback that Tribal leaders shared during five Treasury-hosted Tribal consultations in late March and early April of 2021. In these consultations, Treasury requested and received input from Tribal leaders regarding the allocation methodology, use of funds, and administrative activities such as reporting and compliance.

Of the $19 billion that the Act directs Treasury to allocate, Treasury’s allocation methodology provides that 65% of these funds, or $12.35 billion, will be distributed based on pro rata, self-certified Tribal enrollment (“Enrollment Allocation”). Treasury will distribute the remaining 35% of these funds, or $6.65 billion, based on self-certified Tribal employment data (“Employment Allocation”).  For the Employment Allocation, an equitable minimum payment of $1,000,000 will be made to eligible Tribal governments that confirm or amend their 2019 employment numbers. 

Treasury will use self-certified enrollment numbers submitted to the Bureau of Indian Affairs in April 2021 for the Enrollment Allocation. Treasury will use the 2019 employment data submitted to Treasury in May 2020 in connection with the CARES Act Coronavirus Relief Fund for the Employment Allocation and will require that Tribal governments confirm these numbers.

TRIBAL PAYMENT STRUCTURE

Treasury issued two payments to eligible Tribal governments that accepted funds. The first payment included (i) an amount in respect of the $1 billion allocation that was divided equally among eligible Tribal governments and (ii) each Tribal government’s pro rata share of the Enrollment Allocation. The deadline to complete the first submission was June 21, 2021 11:59 PM PST.

Treasury issued the second payment in respect of the Employment Allocation after Tribal governments confirmed their 2019 employment numbers. The deadline for confirming or amending a Tribal government’s 2019 employment numbers was July 23, 2021 at 11:59 PM PST. Following the July 23, 2021 deadline, Treasury calculated Employment Allocations for those Tribal governments that confirmed or submitted amended employment numbers. In August, Treasury communicated to Tribal governments the amount of their portion of the Employment Allocation and the anticipated delivery date of the payment.

99.9% of funds have been distributed to eligible Tribal Governments and are being used to make a difference in communities.

RECIPIENT COMPLIANCE AND REPORTING Guidance

Each Tribal government is required to meet compliance and reporting responsibilities, as further described in the Compliance and Reporting Guidance. The Reporting Guidance requires program and performance reporting to build public awareness, increase accountability, and monitor compliance of eligible uses.

Treasury is now accepting the Project and Expenditure Reports for certain recipients through Treasury’s Portal. Tribal Governments must submit a Project and Expenditure Report either quarterly or annually. Please refer to the Compliance and Reporting Guidance to determine the exact reporting deadline.

User Guides

Recipients should refer to the following user guides for step-by-step guidance for submitting the required SLFRF reports using Treasury’s Portal:

 

Additional information on Compliance and Reporting

RESOURCES AND CONTACT INFORMATION

To facilitate the process for Tribal governments to receive payments from the Coronavirus State and Local Fiscal Recovery Funds, Treasury has prepared a Coronavirus State and Local Fiscal Recovery Funds Tribal Government Checklist.

Treasury is hosting a webinar in conjunction with the Final Rule release specifically for Tribal governments on January 13, 2022, at 3 p.m. ET. You can register for the webinar here.

Resources and Contact Information

  • If you have questions about the Treasury Submission Portal, experience connectivity, internet, or other access issues, or for technical support, please email covidreliefitsupport@treasury.gov
  • If you have general questions about the Coronavirus State and Local Fiscal Recovery Funds, please email SLFRP@treasury.gov
  • If you have questions about Tribal Affairs at Treasury, please email Tribal.Consult@treasury.gov

 

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REFERENCE DOCUMENTS