Section: Washington Update

The U.S. Department of Treasury has updated its Frequently Asked Questions document to address the three eligible use categories provided in the Consolidated Appropriations Act (CAA) and discussed in the 2023 interim final rule: (1) emergency relief from natural disasters, (2) Surface Transportation projects, and (3) Title I projects.

The FAQs specifically provide that:
The 2023 interim final rule implements how recipients may use SLFRF funds for the three new eligible uses authorized by the 2023 CAA. The four eligible uses provided in the American Rescue Plan and implemented in the 2022 final rule remain available to recipients and generally are unchanged. Accordingly, recipients may continue to use SLFRF funds for eligible projects and activities in accordance with the 2022 final rule.

It is similarly important to note that the FAQs specifically provide that:
Recipients using SLFRF funds under the Surface Transportation projects and Title I projects eligible use categories must supplement, not supplant other federal, state, territorial, Tribal, and local funds (as applicable) otherwise available. The “supplement, not supplant” requirement does not apply to the emergency relief from natural disasters, public health and negative economic impacts, premium pay, revenue loss, and water, sewer, and broadband infrastructure eligible use categories.

The FAQs have been updated to provide recipients of SLFRF funds with more detailed and updated guidance. For reference to which questions have been added or which existing questions have been updated, please visit the revision table on page 2 of the FAQs.