American Rescue Plan: Treasury Information
U.S. Department of Treasury Guidance
On June 17, Treasury released the Compliance and Reporting Guidance for the SLFRF Program. The guidance provides additional detail and clarification for each recipient’s compliance and reporting responsibilities, and should be read in concert with the Award Terms and Conditions, the authorizing statute, the Interim Final Rule (IFR), and other regulatory and statutory requirements.
On May 24, the Treasury additional guidance on NEUs that provides further information on eligibility and a step-by-step guide for states to allocate and distribute funds to their NEUs. States should follow the guidance and calculate allocations based on the list of local governments and their respective populations. The statute requires that all allocations to eligible governments be based on population. Treasury expects to make payments to states for distribution to NEUs in two equal tranches approximately twelve months apart. Answers to frequently asked questions on distribution of funds to NEUs can be found in this FAQ supplement, last updated June7, 2021.
On May 10, the U.S. Department of the Treasury (Treasury) announced the launch of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program authorized by the American Rescue Plan Act. This initiative provides $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery.
Treasury also released the Interim Final Rule (IFR) for the program that describes eligible uses for funding. These include responding to acute pandemic-response needs, filling revenue shortfalls, and supporting the communities and populations hardest-hit by the COVID-19 crisis. With the launch of the program, eligible state, local, territorial, and Tribal governments can request funding from the Treasury to address these needs.
In addition, the Treasury released a Fact Sheet on the Coronavirus State and Local Fiscal Recovery Funds Will Deliver $350 Billion for State, Local, Territorial, and Tribal Governments to Respond to the COVID-19 Emergency and Bring Back Jobs and a Frequently Asked Questions document as of June 23, 2021.
Treasury facilitated a series of webinars to provide an overview of the SLFRF Compliance and Reporting Guidance issued on June 17, 2021. Recipients have different reporting requirements based on population and amount of funding received, so recipients are encouraged review the appropriate materials for your recipient group.
Please note that these materials provide an overview of the guidance and should not be used as a substitute for reviewing the guidance in full, as well as the Award Terms and Conditions, the authorizing statute, the Interim Final Rule, and other regulatory and statutory requirements.
States, Territories and Cities/Counties with population greater or equal to 250,000
o Presentation on Reporting Guidance for State and Territory Recipients
o Presentation on Reporting Guidance for Cities/Counties with population greater or equal to 250,000
How to Obtain Funding
If your jurisdiction is an eligible state, territorial, metropolitan city, county, or Tribal government, it can receive funding directly from Treasury. Your jurisdiction must submit a new request to receive this funding, even if it has previously used this portal to request funding from other programs.
If your jurisdiction is a non-entitlement unit of local government (NEU), it should expect to receive this funding through its applicable state government. State governments that request their own funds from the Coronavirus State and Local Fiscal Recovery Funds will be considered by Treasury to have requested funding for their NEUs as well. Treasury expects to provide further guidance on distributions to NEUs. Following a state’s receipt of funding for its NEUs from Treasury, it is required to distribute funds to its NEUs within 30 days unless an extension is granted by the Secretary of the Treasury. If your jurisdiction is a NEU, please contact your state government following issuance of further guidance from Treasury for additional information about how to receive this funding.
Please note: Jurisdictions classified as NEUs cannot by law receive this funding directly from Treasury and should not request these funds through the Treasury Submission Portal.
Funding Portal for Metropolitan Cities
The portal for local governments that will receive their money directly from the Treasury is live. This link is for cities classified as Metropolitan Cities under the American Rescue Plan Act (ARPA).
Local governments designated as non-entitlement units are eligible to receive Coronavirus State and Local Fiscal Recovery Funds, as provided in the American Rescue Plan Act. However, they will receive this funding from their applicable state government, not though this link.
To complete a submission on behalf of your jurisdiction, you will be asked to provide the following information:
1. Jurisdiction name, taxpayer ID number, DUNS Number, and address
2. Authorized representative name, title, and email
3. Contact person name, title, phone, and email
4. Funds transfer information, including recipient’s financial institution, address, phone, and routing number and account number
5. Completed certification document (to be signed by the authorized representative)
Jurisdictions must submit a request to receive funding even if they have previously applied for other programs through the Treasury Submission Portal. Eligible jurisdictions will receive further communications regarding the status of their submission via the email address provided in the Treasury Submission Portal.
Treasury Guidance on Receiving Funds
Late on April 15, 2021, the U.S. Department of Treasury laid out on their website the steps that metropolitan cities and non-entitlement units of local government need to take to receive their grants from the American Recovery Plan Act (ARPA). These steps should be taken as soon as possible to ensure cities, towns and villages receive their funds in a timely fashion.
As soon as possible, metropolitan cities should take the steps below.
- Ensure the entity has a valid DUNS number. A DUNS number is a unique nine-character number used to identify an organization and is issued by Dun & Bradstreet. The federal government uses the DUNS number to track how federal money is allocated. A DUNS number is required prior to registering with the SAM database, which is outlined below. Registering for a DUNS number is free of charge.
If an entity does not have a valid DUNS number, please visit https://fedgov.dnb.com/webform/ or call 1-866-705-5711 to begin the registration process.
- Ensure the entity has an active SAM registration. SAM is the official government-wide database to register with in order to do business with the U.S. government. All Federal financial assistance recipients must register on SAM.gov and renew their SAM registration annually to maintain an active status to be eligible to receive Federal financial assistance. There is no charge to register or maintain your entity SAM registration. If an entity does not have an active SAM registration, please visit, SAM.gov to begin the entity registration or renewal process. Please note that SAM registration can take up to three weeks; delay in registering in SAM could impact timely payment of funds. Click here for a quick overview for SAM registration.
- Gather the entity’s payment information, including:
o Entity Identification Number (EIN), name, and contact information
o Name and title of an authorized representative of the entity
o Financial institution information (e.g., routing and account number, financial institution name and contact information)
Eligible Non-entitlement Units of Local Government will receive a distribution of funds from their respective state government. “Non-entitlement units of local government” are defined in 42 U.S.C. 5302(a)(5) that are not metropolitan cities. For these Non-entitlement units of local government, Treasury will allocate and pay funds to state governments, and the state will distribute funds to non-entitlement units of local government in proportion to population. Non-entitlement units must have a valid DUNS number to meet reporting requirements under the program. If an entity does not have a valid DUNS number, please visit https://fedgov.dnb.com/webform/ or call 1-866-705-5711 to begin the registration process.
The U.S. Department of Treasury stated that program guidance for Coronavirus State and Local Fiscal Recovery Fund will be released in the coming weeks.
IRS Guidance Regarding Payments to Individuals
On November 16, 2021, the IRS updated guidance regarding payments to individuals. View the FAQ document on the IRS website for the information.
Important Information from the Update
- Premium pay amounts paid to employees are considered wages. Employers generally must withhold federal income tax as well as social security tax and Medicare tax from employees’ wages. (Employers also may have to pay federal unemployment tax on the wages.)
- Any payment from SLFRF that is in the nature of compensation for services, even a one-time payment (such as a hiring “bonus”), is considered wages.
- Payments to individuals from SLFRF for utilities (or arrearages of utilities) is NOT considered income and therefore a Form 1099-MISC is not required.
- Other cash transfers to individuals is not income, and therefore no Form 1099-MISC or other information return is required to be filed with the IRS or furnished to the recipient.