Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

ADD cover page

June 28, 2024

Version: 7.0

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Coronavirus State and Local Fiscal Recovery Funds

Guidance on Recipient Compliance and Reporting

Responsibilities

On March 11, 2021, the American Rescue Plan Act was signed into law, and established the

Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, which

together make up the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program. This

program is intended to provide support to State, territorial, local, and Tribal governments in responding

to the economic and public health impacts of COVID-19 and in their efforts to contain impacts on their

communities, residents, and businesses.

In May 2021, Treasury published the 2021 interim final rule (“2021 IFR”) describing eligible and

ineligible uses of SLFRF, as well as other program requirements. The initial versions of this

Compliance and Reporting guidance reflected the 2021 IFR and its eligible use categories. On

January 6, 2022, the U.S. Department of the Treasury (“Treasury”) adopted the 2022 final rule

implementing the SLFRF program. The 2022 final rule became effective on April 1, 2022. Prior to the

2022 final rule effective date, the 2021 IFR remained in effect; funds used consistently with the 2021

IFR while it was in effect were in compliance with the SLFRF program. However, recipients could

choose to take advantage of the 2022 final rule’s flexibilities and simplifications ahead of the effective

date. Recipients 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 2021 IFR and the 2022 final rule.

On December 29, 2022, the Consolidated Appropriations Act, 2023 was enacted, amending the

SLFRF program to provide additional flexibility for recipients to use SLFRF funds for three new eligible

use categories. The 2023 interim final rule (“2023 IFR”) was published in the federal register on

September 20, 2023. The 2023 IFR became effective upon publication.

In November 2023, Treasury issued an interim final rule (the “Obligation IFR”) to amend the definition

of “obligation” at 31 CFR 35.3 and to provide related clarifications. The Obligation IFR was published

in the federal register on November 20, 2023. The Obligation IFR became effective upon publication.

Treasury published additional guidance clarifying the provisions of the Obligation IFR on March 29,

2024 in Section 17: Obligation of the SLFRF FAQs

To support recipients in complying with the 2022 final rule, the 2023 IFR, and the Obligation IFR, this

reporting guidance reflects the 2022 final rule, the 2023 IFR, the Obligation IFR, and subsequent

guidance provided in FAQs. This guidance provides additional detail and clarification for each

recipient’s compliance and reporting responsibilities under the SLFRF program and should be read

in concert with the Award Terms and Conditions, the authorizing statute, the 2022 final rule, the

2023

IFR, the Obligation IFR, other program guidance including the State and Local Fiscal Recovery Funds

Frequently Asked Questions, and other regulatory and statutory requirements, including regulatory

requirements under the Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards (“Uniform Guidance” or 2 CRF Part 200), and 2021 SLFRF

Compliance Supplement – Technical Update, 2022 SLFRF Compliance Supplement, 2023 SLFRF

Compliance Supplement, and 2024 SLFRF Compliance Supplement. Please see the Assistance

Listing in SAM.gov under assistance listing number (formerly known as the CFDA number) 21.027 for

more information.

Please Note: This guidance document applies to the SLFRF program only and does not change or

impact reporting and compliance requirements for the Coronavirus Relief Fund (“CRF”) established

by the CARES Act.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

This guidance includes two parts:

Part 1: General Guidance

This section provides an orientation to recipients’ compliance responsibilities and Treasury’s

expectations and recommends best practices where appropriate under the SLFRF program.

A. Key Principles……………………..…………………………………………………….

P. 4

B. Statutory Eligible Uses………………………………………………………………….

P. 4

Treasury’s 2022 Final Rule, 2023 IFR, and Obligation IFR

..…………….…………

P. 5

D. Uniform Guidance (2 CFR Part 200)……………..……………………………………

P. 8

Award Terms and Conditions………………………………...………………………...

P. 13

Part 2: Reporting Requirements

This section provides information on the reporting requirements for the SLFRF program.

A. Interim Report…...……………..……………………………………………...….

P. 18

B. Project and Expenditure Report…………….…………………………………...…….

P. 19

C. Recovery Plan Performance Report..………………..……………………….….……

P. 40

Appendix 1: Expenditure Categories…………………………………………………….……

P. 48

Appendix 2: Evidenced-Based Intervention Additional Information…………………….….

P. 55

Appendix 3: Expenditure Categories under the 2021 Interim Final Rule………..………..

P. 56

OMB Control Number: 1505-0271

OMB Expiration Date: 04/30/2025

PAPERWORK REDUCTION ACT NOTICE

The information collected will be used for the U.S. Government to process requests for support. The

estimated burden for the collections of information included in this guidance is as follows: 30 minutes

for Title VI Assurances, 2 hours per response for the Interim Report, 6 hours per response for the

Project and Expenditure Report and 100 hours per response for the Recovery Plan Performance

Report (if applicable). Comments concerning the accuracy of this burden estimate and suggestions

for reducing this burden should be directed to the Office of Privacy, Transparency and Records,

Department of the Treasury, 1500 Pennsylvania Ave., N.W., Washington, D.C. 20220. DO NOT send

the form to this address. An agency may not conduct or sponsor, and a person is not required to

respond to, a collection of information unless it displays a valid control number assigned by OMB.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Part 1: General Guidance

This section provides an orientation on recipients’ compliance responsibilities and Treasury’s

expectations and recommended best practices where appropriate under the SLFRF program.

Recipients under the SLFRF program are the eligible entities identified in sections 602 and 603 of the

Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021 (the “SLFRF

statute”) that receive

an SLFRF award. Subrecipients under the SLFRF program are entities that

receive a subaward from a recipient to carry out the purposes (program or project) of the SLFRF

award on behalf of the recipient.

Recipients are accountable to Treasury for oversight of their subrecipients in accordance with 2 CFR

200.332, including ensuring their subrecipients comply with the SLFRF statute, SLFRF Award Terms

and Conditions, Treasury’s 2021 IFR, 2022 final rule, 2023 IFR, Obligation IFR, other applicable

federal statutes and regulations, and reporting requirements.

A. Key Principles

There are several guiding principles for developing your own effective compliance regimes:

• Recipients and subrecipients are the first line of defense and responsible for ensuring the SLFRF

award funds are not used for ineligible purposes, and there is no fraud, waste, or abuse associated

with their SLFRF award;

• Many SLFRF-funded projects respond to the COVID-19 public health emergency

and meet

urgent community needs. Swift and effective implementation is vital, and recipients must balance

facilitating simple and rapid program access widely across the community and maintaining a

robust documentation and compliance regime;

• Treasury encourages recipients to use SLFRF-funded projects to advance shared interests and

promote equitable delivery of government benefits and opportunities to underserved communities,

as outlined in

Executive Order 13985, On Advancing Racial Equity and Support for Underserved

Communities Through the Federal Government; and

• Transparency and public accountability for SLFRF award funds and use of such funds are critical

to upholding program integrity and trust in all levels of government, and SLFRF award funds

should be managed consistent with Administration guidance per Memorandum M-21-20

and

Memorandum M-20-21.

B. Statutory Eligible Uses

As a recipient of an SLFRF award, your organization has substantial discretion to use the award funds

in the ways that best suit the needs of your constituents – as long as such use fits into one of the

following seven statutory categories:

1. To respond to the COVID-19 public health emergency or its negative economic impacts;

2. To respond to workers performing essential work during the COVID-19 public health emergency

by providing premium pay to eligible workers of the recipient that are performing such essential

work, or by providing grants to eligible employers that have eligible workers who perform essential

work;

3. For the provision of government services, to the extent of the reduction in revenue of such

The SLFRF rule defines “COVID-19 public health emergency” as “the period beginning on January 27, 2020

and lasting until the termination of the national emergency concerning the COVID-19 outbreak declared

pursuant to the National Emergencies Act.” See 31 CFR 35.3. As discussed in FAQ 4.11, following the

termination of the National Emergency on April 10, 2023, recipients generally may continue to make

investments using their SLFRF funds without changes, with the exception of projects in the premium pay

eligible use category. Please refer to FAQ 4.11 for more information.

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Compliance and Reporting Guidance

recipient due to the COVID–19 public health emergency, relative to revenues collected in the most

recent full fiscal year of the recipient prior to the emergency;

4. To make necessary investments in water, sewer, or broadband infrastructure;

5. To provide emergency relief from natural disasters or the negative economic impacts of natural

disasters;

6. For projects eligible under the 26 surface transportation programs specified in the 2023 CAA

(Surface Transportation projects); or

7. For projects eligible under Title I of the Housing and Community Development Act of 1974 (Title I

projects).

In addition, sections 602(c)(4) and 603(c)(5) of the Social Security Act, as amended by the

Infrastructure Investment and Jobs Act, provide that SLFRF funds may be used for an authorized

Bureau of Reclamation project for purposes of satisfying any non-Federal matching requirement

required for the project.

Treasury adopted the 2021 IFR in May 2021 and the 2022 final rule

on January 6, 2022 to

implement the first four eligible use categories and other restrictions on the use of funds under the

SLFRF program. The 2022 final rule took effect on April 1, 2022, and the 2021 IFR remained in

effect until that time, although recipients could choose to take advantage of the 2022 final rule’s

flexibilities and simplifications prior to April 1, 2022. Recipients 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 2021 IFR and the 2022 final rule.

On December 29, 2022, the Consolidated Appropriations Act, 2023 was enacted, amending the

SLFRF program to provide additional flexibility for recipients to use SLFRF funds for three new eligible

use categories. The 2023 IFR was published in the Federal Register on September 20, 2023 and

became effective upon publication. The Obligation IFR was published in the Federal Register on

November 20, 2023 and became effective upon publication.

It is the recipient’s responsibility to ensure all SLFRF award funds are used in compliance with the

program’s requirements. In addition, recipients should be mindful of any additional compliance

obligations that may apply – for example, additional restrictions imposed upon other sources of funds

used in conjunction with SLFRF award funds, or statutes and regulations that may independently

apply to water, broadband, and sewer infrastructure projects. Recipients should ensure they maintain

proper documentation supporting determinations of costs and applicable compliance requirements,

and how they have been satisfied as part of their award management, internal controls, and

subrecipient oversight and management.

C. Treasury’s 2022 Final Rule, 2023 IFR, and Obligation IFR

Treasury’s 2022 final rule, 2023 IFR, and Obligation IFR

detail recipients’ compliance responsibilities

and provide additional information on eligible and restricted uses of SLFRF award funds and reporting

requirements.

1. Eligible and Restricted Uses of SLFRF Funds. As described in the SLFRF statute and

summarized above, there are seven eligible uses of SLFRF award funds. As a recipient of an

award under the SLFRF program, your organization is responsible for complying with

requirements for the use of funds. In addition to determining a given project’s eligibility, recipients

are also responsible for determining subrecipients’ or beneficiaries’ eligibility, and must monitor

subrecipients’ use of SLFRF award funds.

To help recipients build a greater understanding of eligible uses, Treasury’s 2022 final rule

and

2023 IFR establish frameworks for determining whether a specific project would be eligible under

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Compliance and Reporting Guidance

the SLFRF program, including some helpful definitions. For example, Treasury’s 2022 final rule

and 2023 IFR establish:

• A framework for determining whether a project responds to the COVID-19 public health

emergency or its negative economic impacts;

• Definitions of “eligible employers,” “essential work,” “eligible workers,” and “premium pay” for

cases where premium pay is an eligible use;

• The option to select between a standard amount of revenue loss or complete a full revenue

loss calculation of revenue lost due to the COVID-19 public health emergency;

• A framework for necessary water and sewer infrastructure projects that aligns eligible uses

with projects that are eligible under the Environmental Protection Agency’s Drinking Water

and Clean Water State Revolving Funds along with certain additional projects, including a

wider set of lead remediation and stormwater infrastructure projects and aid for residential

wells;

• A framework for necessary broadband projects that allows for projects that are designed to

provide service of sufficient speeds to eligible areas, as well as an affordability requirement

for providers that provide service to households;

• A framework for determining how to provide emergency relief from a natural disaster;

• Three pathways for using SLFRF funds for Surface Transportation projects; and

• A list of eligible Title I projects by reference to the activities that are eligible under the

Community Development Block Program.

Treasury’s 2022 final rule

also provides more information on important restrictions on use of

SLFRF award funds, including that recipients other than Tribal governments may not deposit

SLFRF funds into a pension fund; and recipients that are States or territories may not use SLFRF

funds to offset a reduction in net tax revenue resulting from the recipient’s change in law,

regulation, or administrative interpretation. In addition, recipients may not use SLFRF funds

directly to service debt, satisfy a judgment or settlement, or contribute to a “rainy day” fund.

Recipients should refer to Treasury’s 2022 final rule for more information on these restrictions and

to the 2023 IFR for how these restrictions apply to the eligible uses added by the Consolidated

Appropriations Act, 2023.

Treasury’s 2022 final rule outlines that funds available under the “revenue loss” eligible use

category (sections 602(c)(1)(C) and 603(c)(1)(C) of the Social Security Act) generally may be

used to meet the non-federal cost-share or matching requirements of other federal programs.

However, the 2022 final rule notes that SLFRF funds may not be used as the non-federal share

for purposes of a state’s Medicaid and CHIP programs because the Office of Management and

Budget (“OMB”) has approved a waiver as requested by the Centers for Medicare & Medicaid

Services pursuant to 2 CFR 200.102 of the Uniform Guidance and related regulations. If a

recipient seeks to use SLFRF funds to satisfy match or cost-share requirements for a federal grant

program, it should first confirm with the relevant awarding agency that no waiver has been granted

for that program, that no other circumstances enumerated under 2 CFR 200.306(b) would limit

the use of SLFRF funds to meet the match or cost-share requirement, and that there is no other

statutory or regulatory impediment to using the SLFRF funds for the match or cost-share

requirement. Treasury’s 2023 IFR outlines that under the Surface Transportation projects eligible

use category, recipients may use SLFRF funds to satisfy non-federal cost share requirements for

certain programs under Pathway Three. In addition, under the Title I projects eligible use category,

recipients may use SLFRF funds to satisfy the non-federal share requirements of a federal

financial assistance program in support of activities that would be eligible under the CDBG and

ICDBG programs.

SLFRF funds beyond those that are available under the circumstances described above may not

be used to meet the non-federal match or cost-share requirements of other federal programs,

other than as specifically provided for by statute. For example, the Infrastructure Investment and

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Jobs Act provides that SLFRF funds may be used to meet the non-federal match requirements of

authorized Bureau of Reclamation projects and certain broadband deployment projects.

Treasury’s 2023 IFR describes the additional statutory restrictions that apply to the Surface

Transportation projects and Title I projects eligible use categories. First, the total amount of SLFRF

funds that a recipient may use for Surface Transportation projects and Title I projects, taken

together, cannot exceed the greater of $10 million and 30% of a recipient’s SLFRF allocation.

Second, recipients using SLFRF funds for Surface Transportation projects and Title I projects

must supplement, and not supplant, other federal, state, territorial, Tribal, and local government

funds (as applicable) otherwise available for such uses. For the Surface Transportation projects

eligible use category, recipients using funds for projects eligible for Urbanized Formula Grants,

Fixed Guideway Capital Investment Grants, Formula Grants for Rural Areas, State of Good Repair

Grants, or Grants for Buses and Bus Facilities may not use SLFRF funds for operating expenses

of these projects.

2. Eligible Costs Timeframe. For eligible use categories described in the 2022 final rule, your

organization, as a recipient of an SLFRF award, may use SLFRF funds to cover eligible costs that

your organization incurred during the period that begins on March 3, 2021 and ends on December

31, 2024, as long as the award funds for the obligations incurred by December 31, 2024 are

expended by December 31, 2026. Costs incurred for projects by the recipient State, territorial,

local, or Tribal government prior to March 3, 2021 are not eligible, as provided for in Treasury’s

2022 final rule.

For eligible use categories described in the 2023 IFR, recipients may use SLFRF funds for the

three new eligible uses for costs incurred beginning December 29, 2022. Consistent with the

existing eligible uses, recipients must obligate SLFRF funds for the new eligible uses by December

31, 2024. Recipients must expend SLFRF funds obligated to provide emergency relief from

natural disasters by December 31, 2026. Recipients must expend SLFRF funds obligated for

Surface Transportation projects and Title I projects by September 30, 2026. Costs for projects

described in the 2023 IFR that are incurred by the recipient State, territorial, local, or Tribal

government prior to December 29, 2022 are not eligible under these three eligible use categories.

Recipients may, in certain circumstances, use SLFRF award funds for the eligible use

categories described in Treasury’s 2022 final rule for costs incurred prior to March 3, 2021.

Specifically,

a. Public Health/Negative Economic Impacts: Recipients may use SLFRF award funds to

provide assistance to households, small businesses, and nonprofits to respond to the public

health emergency or negative economic impacts of the pandemic – such as rent, mortgage,

or utility assistance – for costs incurred by the beneficiary (e.g., a household) prior to March

3, 2021, provided that the recipient State, territorial, local or Tribal government did not incur

the cost of providing such assistance prior to March 3, 2021.

b. P

remium Pay: Recipients may provide premium pay retrospectively for work performed at

any time during the COVID-19 public health emergency. Such premium pay must be “in

addition to” wages and remuneration already received and the obligation to provide such

premium pay must not have been incurred by the recipient prior to March 3, 2021.

c. R

evenue Loss: Recipients have broad discretion to use funds for the provision of

government services to the extent of reduction in revenue. While calculation of lost revenue

is based on the recipient’s revenue in the last full fiscal year prior to the COVID-19 public

health emergency, use of funds for government services must be forward looking for costs

incurred by the recipient after March 3, 2021.

d. I

nvestments in Water, Sewer, and Broadband: Recipients may use SLFRF award funds to

make necessary investments in water, sewer, and broadband infrastructure. Recipients may

use SLFRF award funds to cover costs incurred for eligible projects planned or started prior

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

to March 3, 2021, provided that the project costs covered by the SLFRF award funds were

not incurred by the recipient prior to March 3, 2021.

Any funds not obligated or expended for eligible uses by the timelines above must be returned

to Treasury, including any unobligated or unexpended funds that have been provided to

subrecipients and contractors as part of the award closeout process pursuant to 2 C.F.R.

200.344(d). For the purposes of determining expenditure eligibility, “incurred” means the

recipient has incurred an obligation. See 31 CFR 35.3 and 35.5(b).

As discussed in FAQ 17.19, after the December 31, 2024 obligation deadline, recipients may

have excess funds that were obligated as of the deadline but ultimately not expended on an

eligible activity. While recipients may not incur new obligations for the use of SLFRF funds after

December 31, 2024, recipients may reclassify SLFRF funds from a reported activity to another

project that would be eligible under the program rules (including the requirement that the

recipient incurred an obligation for the project by December 31, 2024), regardless of whether

those project(s) were reported to Treasury by the obligation deadline. Treasury will add new

functionalities in the January 31, 2025 Project & Expenditure Report to enable recipients to add

and reclassify funds to project(s) for which an obligation was incurred by December 31, 2024.

3. Reporting. Generally, recipients must submit one initial Interim Report, quarterly or annual Project

and Expenditure reports which include subaward reporting, and in some cases annual Recovery

Plan reports. Treasury’s 2022 final rule, 2023 IFR, Obligation IFR, and Part 2 of this guidance

provide more detail around SLFRF reporting requirements.

4. Expenditure Categories. Treasury’s 2022 final rule provides flexibility and simplicity for recipients

to fight the pandemic and support families and businesses struggling with its impacts, maintain

vital services amid revenue shortfalls, and build a strong, resilient, and equitable recovery. As

such, recipients report on a broad set of eligible uses and associated Expenditure Categories

(“EC”), which began with the April 2022 Project and Expenditure Report. Appendix 1 includes the

ECs, as well as a reference to previous ECs used for reporting under the 2021 IFR.

The 2023 IFR implements the amendments to the SLFRF program made by the Consolidated

Appropriations Act, 2023, which provides additional flexibility for recipients to use SLFRF funds to

respond to natural disasters, build critical infrastructure, and support community development.

The additional ECs associated with the 2023 IFR began with the October 2023 Project and

Expenditure Report. These ECs also may be found in Appendix 1.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

D. Uniform Administrative Requirements

The SLFRF awards are generally subject to the requirements set forth in the Uniform Guidance. In all

instances, your organization should review the Uniform Guidance requirements applicable to your

organization’s use of SLFRF funds, and SLFRF-funded projects. Additional details about applicability

of certain provisions of the Uniform Guidance may be found in:

• SLFRF 2022 final rule;

• SLFRF Assistance Listing

;

• SLFRF FAQs, including FAQ 4.9, 10.1, and Section 13; and

• SLFRF 2023 IFR.

The following sections provide a general summary of your organization’s compliance responsibilities

under applicable statutes and regulations, including the Uniform Guidance, as described in the most

recent compliance supplement issued by OMB. Note that the descriptions below are only general

summaries and all recipients and subrecipients are advised to carefully review the Uniform Guidance

requirements and any additional regulatory and statutory requirements applicable to the program.

1. Allowable Activities. Each recipient should review program requirements, including Treasury’s

2022 final rule, 2023 IFR, Obligation IFR, SLFRF FAQs, and the recipient’s Award Terms and

Conditions, to determine and record eligible uses of SLFRF funds. Per 2 CFR 200.303, your

organization must develop and implement effective internal controls to ensure that funding

decisions under the SLFRF award constitute eligible uses of funds, and document determinations.

2. Allowable Costs/Cost Principles. As outlined in the Uniform Guidance at 2 CFR Part 200,

Subpart E regarding Cost Principles, allowable costs are based on the premise that a recipient is

responsible for the effective administration of Federal awards, application of sound management

practices, and administration of Federal funds in a manner consistent with the program objectives

and terms and conditions of the award. Recipients must implement robust internal controls and

effective monitoring to ensure compliance with the Cost Principles, which are important for

building trust and accountability. Please note that as outlined in FAQ 13.15

, only a subset of the

Uniform Guidance requirements at 2 CFR Part 200 Subpart E (Cost Principles) applies to

recipients’ use of funds in the revenue loss eligible use category.

SLFRF funds may be, but are not required to be, used along with other funding sources for a given

Assistance Listing

The Assistance Listing for the Coronavirus State and Local Fiscal Recovery Funds

(SLFRF) was published May 28, 2021 on SAM.gov under Assistance Listing Number

(“ALN”), formerly known as CFDA Number, 21.027.

The assistance listing includes helpful information including program purpose, statutory

authority, eligibility requirements, and compliance requirements for recipients. The ALN is

the unique 5-digit number assigned to identify a federal assistance listing, and can be used

to search for federal assistance program information, including funding opportunities,

spending on USASpending.gov, or audit results through the Federal Audit Clearinghouse.

To expedite payments and meet statutory timelines Treasury issued initial payments under

an existing ALN, 21.019, assigned to the CRF. If you have already received funds or

captured the initial number in your records, please update your systems and reporting to

reflect the new ALN 21.027 for the SLFRF program. Recipients must use ALN 21.027

for all financial accounting, subawards, and associated program reporting

requirements for the SLFRF awards.

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Compliance and Reporting Guidance

project. Recipients should note that SLFRF funds available under the “revenue loss” eligible use

category generally may be used to meet the non-federal cost-share or matching requirements of

other federal programs. If a recipient seeks to use SLFRF funds to satisfy match or cost-share

requirements for a federal grant program, the recipient should first confirm with the relevant

awarding agency that no waiver has been granted for that program, that no other circumstances

enumerated under 2 CFR 200.306(b) would limit the use of SLFRF funds to meet the match or

cost-share requirement, and that there is no other statutory or regulatory impediment to using the

SLFRF funds for the match or cost-share requirement. For instance, recipients should note that

SLFRF funds may not be used as the non-federal share for purposes of a state’s Medicaid and

CHIP programs because OMB has approved a waiver from this provision as requested by the

Centers for Medicare & Medicaid Services pursuant to 2 CFR 200.102 of the Uniform Guidance

and related regulations.

Treasury’s 2023 IFR outlines that under the Surface Transportation projects eligible use category,

recipients may use SLFRF funds to satisfy non-federal cost share requirements for certain

programs under Pathway Three. In addition, under the Title I projects eligible use category,

recipients may use SLFRF funds to satisfy the non-federal share requirements of a federal

financial assistance program in support of activities that would be eligible under the CDBG and

ICDBG programs.

SLFRF funds beyond those that are available under the circumstances described above may not

be used to meet the non-federal match or cost-share requirements of other federal programs,

other than as specifically provided for by statute. As an example, the Infrastructure Investment

and Jobs Act provides that SLFRF funds may be used to meet the non-federal match requirements

of authorized Bureau of Reclamation projects and certain broadband deployment projects.

Recipients should consult the 2022 final rule for further details if they seek to utilize SLFRF funds

as a match for these projects.

Treasury’s 2022 final rule, 2023 IFR, program guidance, and the Uniform Guidance outline the

types of costs that are allowable, including certain audit costs. For example, per 2 CFR 200.425,

a reasonably proportionate share of the costs of audits required by the Single Audit Act

Amendments of 1996 are allowable; however, costs for audits that were not performed in

accordance with 2 CFR Part 200, Subpart F and the Compliance Supplement are not allowable.

Please see 2 CFR Part 200, Subpart E regarding the Cost Principles for more information.

a. Administrative costs: Recipients may use funds for administering the SLFRF program,

including costs of consultants to support effective management and oversight, including

consultation for ensuring compliance with legal, regulatory, and other requirements.

Further, costs must be reasonable and allocable as outlined in 2 CFR 200.404 and 2 CFR

200.405. Pursuant to the SLFRF Award Terms and Conditions, recipients are permitted to

charge both direct and indirect costs to their SLFRF award as administrative costs as long

as they are accorded consistent treatment per 2 CFR 200.403. Direct costs are those that

are identified specifically as costs of implementing the SLFRF program objectives, such as

contract support, materials, and supplies for a project. Indirect costs are general overhead

costs of an organization where a portion of such costs are allocable to the SLFRF award

such as the cost of facilities or administrative functions like a director’s office.

Each

category of cost should be treated consistently in like circumstances as direct or indirect, and

recipients may not charge the same administrative costs to both direct and indirect cost

categories, or to other programs. If a recipient has a current Negotiated Indirect Costs Rate

Recipients also may use SLFRF funds directly for administrative costs to improve the design and execution

of programs responding to the COVID-19 pandemic and to administer or improve the efficacy of programs

addressing the public health emergency or its negative economic impacts. 31 CFR 35.6(b)(3)(ii)(E)(3).

2 CFR 200.413 Direct Costs.

2 CFR 200.414 Indirect Costs.

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Compliance and Reporting Guidance

Agreement (“NICRA”) established with a Federal cognizant agency responsible for

reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, then

the recipient may use its current NICRA. Alternatively, if the recipient does not have a

NICRA, the recipient may elect to use the de minimis rate of 10 percent of the modified total

direct costs pursuant to 2 CFR 200.414(f).

b. Salaries and Expenses: In general, certain employees’ wages, salaries, and covered

benefits are an eligible use of SLFRF award funds. Please see Treasury’s 2022 final rule for

details.

3. Cash Management. SLFRF payments made to recipients are not subject to the requirements of

the Cash Management Improvement Act and Treasury’s implementing regulations at 31 CFR Part

205 or 2 CFR 200.305(b)(8)-(9).

As such, recipients can place funds in interest-bearing accounts, do not need to remit interest to

Treasury, and are not limited to using that interest for eligible uses under the SLFRF award.

4. Eligibility and Unique Entity Identifier Requirements. Under the SLFRF program, recipients

are responsible for ensuring that award funds are used for eligible purposes. Accordingly,

recipients must develop and implement policies and procedures, and retain records, to determine

and monitor implementation of criteria for determining the eligibility of beneficiaries and/or

subrecipients. Your organization, and if applicable, the subrecipient(s) administering a program

on behalf of your organization, will need to develop and maintain procedures for obtaining

information evidencing a given beneficiary’s, subrecipient’s, or contractor’s eligibility, including

ensuring subrecipients and contractors are in good standing in accordance with 2 CFR 200.214

and 2 CFR Part 200, Appendix II, paragraph (H).

Further, recipients and subrecipients are required to obtain a valid Unique Entity Identifier (UEI),

which is assigned by SAM.gov. Pursuant to the award term regarding 2 CFR Part 25, Appendix

A, which is incorporated by reference in the SLFRF Financial Assistance Agreement, recipients

are required to maintain current information in SAM.gov for the duration of the period of

performance of the SLFRF award. A recipient may not make a subaward to a subrecipient unless

that subrecipient has obtained and provided to the recipient a UEI. Subrecipients are not required

to complete full SAM.gov registration to obtain a UEI. A UEI is not required with respect to

beneficiaries and contractors. Implementing risk-based due diligence for eligibility determinations

is a best practice to augment your organization’s existing controls.

As discussed in item 11 below, recipients may obligate SLFRF funds by entering into an

interagency agreement with a unit of government, and may choose to treat that unit of government

as a subrecipient. If a recipient chooses to treat the counterparty to the interagency agreement as

a subrecipient, then the recipient must also provide a UEI for that entity. If a recipient chooses to

treat the counterparty as a part of the recipient government, the recipient is not required to provide

a UEI for that entity.

5. Property Management. Any purchase of real or personal property with SLFRF funds must be

consistent with the Uniform Guidance at 2 CFR Part 200, Subpart D, unless stated otherwise by

Treasury. For example, as outlined in FAQ 13.15

, only a subset of the Uniform Guidance

requirements at 2 CFR Part 200 Subpart D (Post Federal Award Requirements) applies to

recipients’ use of funds in the revenue loss eligible use category. Furthermore, as outlined in FAQ

13.16, Treasury has clarified the use and disposition requirements for real and personal property,

supplies, and equipment purchased with SLFRF funds.

6. Matching, Level of Effort, Earmarking. There are no matching, level of effort, or earmarking

compliance responsibilities associated with the SLFRF award. See Section C.1 (Eligible and

Restricted Uses of SLFRF Funds) for a discussion of restrictions on use of SLFRF funds. Please

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

see 2. Allowable Costs/Cost Principles above for information on the use of SLFRF funds for non-

Federal match or cost-sharing requirements in other Federal programs.

7. Period of Performance. Your organization should also develop and implement internal controls

related to activities occurring outside the period of performance. For eligible uses under the 2022

final rule, all funds remain subject to statutory and regulatory requirements that they must be used

for costs incurred by the recipient during the period that begins on March 3, 2021, and ends on

December 31, 2024, and that award funds for the financial obligations incurred by December 31,

2024 must be expended by December 31, 2026. For eligible uses under the 2023 IFR, recipients

may use SLFRF funds for costs incurred beginning December 29, 2022. Consistent with the

existing eligible uses, recipients must obligate SLFRF funds for the new eligible uses by December

31, 2024. Recipients must expend SLFRF funds obligated to provide emergency relief from

natural disasters by December 31, 2026. Recipients must expend SLFRF funds obligated for

Surface Transportation projects and Title I projects by September 30, 2026.

Any funds not

expended must be returned to Treasury as part of the award closeout process pursuant to 2 C.F.R.

200.344(d).

8. Procurement, Suspension & Debarment. Recipients are responsible for ensuring that any

procurement using SLFRF funds, or payments under procurement contracts using such funds,

are consistent with the procurement standards set forth in the Uniform Guidance at 2 CFR 200.317

through 2 CFR 200.327, unless stated otherwise by Treasury. As outlined in FAQ 13.15

, only a

subset of the Uniform Guidance requirements at 2 CFR Part 200 Subpart D (Post Federal Award

Requirements) applies to recipients’ use of funds in the revenue loss eligible use category. The

procurement standards set forth in the Uniform Guidance at 2 CRF 200.317 through 2 CRF

200.327 are not included in FAQ 13.15’s list of applicable Subpart D requirements that apply to

recipients’ use of funds in the revenue loss eligible use category.

The Uniform Guidance establishes in 2 CFR 200.319 that all procurement transactions for

property or services must be conducted in a manner providing full and open competition,

consistent with standards outlined in 2 CFR 200.320, which allows for non-competitive

procurements only in certain circumstances. Recipients must have and use documented

procurement procedures that are consistent with the standards outlined in 2 CFR 200.317 through

2 CFR 200.320. In addition, the Uniform Guidance at 2 CFR 200.214, 2 CFR Part 180, and

Treasury’s implementing regulations at 31 CFR Part 19, prohibit recipients from entering into

contracts with suspended or debarred parties. The procurement standards outlined in the Uniform

Guidance require an infrastructure for competitive bidding and contractor oversight, including

maintaining written standards of conduct. Your organization must ensure adherence to all

applicable local, State, and federal procurement laws and regulations.

9. Program Income. Generally, program income includes, but is not limited to, income from fees for

services performed, the use or rental of real or personal property acquired under Federal awards,

and principal and interest on loans made with Federal award funds. Program income does not

include interest earned on advances of Federal funds, rebates, credits, discounts, or interest on

rebates, credits, or discounts. Recipients of SLFRF funds should calculate, document, and record

the organization’s program income. Additional controls that your organization should implement

include written policies that explicitly identify appropriate allocation methods, accounting

standards and principles, compliance monitoring checks for program income calculations, and

records.

As discussed in SLFRF FAQ 17.21, program income includes that which is earned between the

December 31, 2024, obligation deadline and the end of the period of performance on December

31, 2026. As with all award funds, such program income may only be used to cover an obligation

that was incurred by December 31, 2024.

The Uniform Guidance outlines the requirements that pertain to program income at 2 CFR

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Compliance and Reporting Guidance

200.307. Treasury has clarified in its FAQs that recipients may add program income to the Federal

award. Any program income generated from SLFRF funds must be used for the purposes and

under the conditions of the Federal award. Further, FAQ 4.9 provides additional information about

program income requirements applicable to certain eligible uses, and FAQ 13.15 clarifies that only

a subset of the Uniform Guidance requirements at 2 CFR 200 Subpart D (Post Federal Award

Requirements) applies to recipients’ use of funds in the revenue loss eligible use category. The

list of applicable Subpart D requirements in FAQ 13.15 does not include the program income

requirements in 2 CFR 200.307.

10. Reporting. All recipients of federal funds must complete financial, performance, and compliance

reporting as required and outlined in Part 2 of this guidance. Expenditures may be reported on a

cash or accrual basis, as long as the methodology is disclosed and consistently applied. Reporting

must be consistent with the definition of expenditures pursuant to 2 CFR 200.1. Your organization

should appropriately maintain accounting records for compiling and reporting accurate, compliant

financial data, in accordance with appropriate accounting standards and principles.

In addition, where appropriate, your organization needs to establish controls to ensure completion

and timely submission of all mandatory performance and/or compliance reporting. See Part 2 of

this guidance for a full overview of recipient reporting responsibilities.

Consolidated jurisdictions or other types of jurisdictions that received multiple SLFRF allocations

(e.g., a county and city with a consolidated government) are only required to file once per reporting

period, and such reports will cover the total SLFRF allocations received by the jurisdiction. This

includes non-entitlement units of local government (“NEUs”) and/or units of general local

government located within counties that are not units of general local government. In addition,

the total SLFRF allocations across all sources for a given jurisdiction will be used to identify that

jurisdiction’s Reporting Tier.

11. Subrecipient Monitoring. SLFRF recipients that are pass-through entities as described under 2

CFR 200.1 are required to manage and monitor their subrecipients to ensure compliance with

requirements of the SLFRF award pursuant to 2 CFR 200.332 regarding requirements for pass-

through entities.

First, your organization must clearly identify to the subrecipient: (1) that the award is a subaward

of SLFRF funds; (2) any and all compliance requirements for use of SLFRF funds; and (3) any

and all reporting requirements for expenditures of SLFRF funds.

Next, your organization will need to evaluate each subrecipient’s risk of noncompliance based on

a set of common factors. These risk assessments may include factors such as prior experience

in managing Federal funds, previous audits, personnel, and policies or procedures for award

execution and oversight. Ongoing monitoring of any given subrecipient should reflect its assessed

risk and include monitoring, identification of deficiencies, and follow-up to ensure appropriate

remediation.

Accordingly, your organization should develop written policies and procedures for subrecipient

monitoring and risk assessment and maintain records of all award agreements identifying or

otherwise documenting subrecipients’ compliance obligations.

Recipients should note that NEUs are not subrecipients under the SLFRF program. They are

SLFRF recipients that report directly to Treasury.

Recipients should also note that subrecipients do not include individuals and organizations that

received SLFRF funds as end users. Such individuals and organizations are beneficiaries and not

subject to audit pursuant to the Single Audit Act and 2 C.F.R. Part 200, Subpart F.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Many recipients may choose to provide a subaward or contract to other entities to provide services

to other end users. For example, a recipient may provide a subaward to a nonprofit to provide

homeless services to individuals experiencing homelessness. In this case, the subaward to a

nonprofit is based on the services that the recipient intends to provide (assistance to households

experiencing homelessness), and the nonprofit is serving as the subrecipient, providing services

on behalf of the recipient. Subrecipients are subject to an audit pursuant to the Single Audit Act

and 2 CFR part 200, subpart F regarding audit requirements, whereas contractors are not subject

to an audit pursuant to the Single Audit Act and 2 CFR part 200, subpart F regarding audit

requirements.

Please note that as outlined in FAQ 13.14, recipients’ use of funds in the revenue loss eligible use

category does not give rise to subrecipient relationships. As a result, subaward reporting is not

required for projects in the revenue loss eligible use category. While there is no federal program

or purpose to carry out in the same way that there is for the other SLFRF expenditure categories,

these funds retain their federal character and recipients remain subject to laws and regulations

applicable to Federal financial assistance programs.

As discussed in SLFRF FAQ 17.6, Treasury considers an interagency agreement, including an

agreement in the form of a memorandum of understanding, to constitute a “transaction requiring

payment” similar to a contract or subaward and therefore an obligation for purposes of the

SLFRF rule, if the agreement satisfies certain conditions. If a recipient has not yet provided

funds to a unit of its government and would like to do so for that unit to carry out an eligible

project and count as an obligation, the recipient may do so under FAQ 17.6.

If a recipient previously entered into an agreement with a unit of its government and reported

that arrangement as a subaward, then the recipient may maintain that treatment or revise its

reporting to reflect an interagency agreement, as long as the requirements of FAQ 17.6 are

met. If the recipient is reporting the arrangement as a subaward, the recipient should note that

the subrecipient monitoring and other requirements applicable to subawards at 2 CFR Part 200

continue to apply. In either case, the use of funds must be appropriately managed and overseen

in accordance with the program’s award terms and conditions, including the requirements at 2

CFR 200.329 or 2 CFR 200.331, as applicable.

If a recipient obligates funds via an interagency agreement with an agency, department, or part of

government according to the provisions described in FAQ 17.6

or 17.23, that agency, department,

or part of government may itself enter into subawards and contracts. Because the interagency

agreement is considered an obligation, the obligation deadline does not apply to that agency,

department, or part of government.

12. Special Tests and Provisions. From time-to-time, Treasury may issue subregulatory guidance

as well as frequently asked questions.

Across each of the compliance requirements above, Treasury has described some best practices

for development of internal controls in Table 1 below, with an example of each best practice.

Table 1: Internal controls best practices

Best Practice

Description

Example

Written policies and

procedures

Formal documentation of

recipient policies and

procedures

Documented procedure for

determining worker eligibility

for premium pay

Written standards of

conduct

Formal statement of

mission, values, principles,

and professional standards

Documented code of

conduct / ethics for

subcontractors

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Best Practice

Description

Example

Risk-based due diligence

Pre-payment validations

conducted according to an

assessed level of risk

Enhanced eligibility review

of subrecipient with

imperfect performance

history

Risk-based compliance

monitoring

Ongoing validations

conducted according to an

assessed level of risk

Higher degree of monitoring

for projects that have a

higher risk of fraud, given

program characteristics

Record maintenance and

retention

Creation and storage of

financial and non-financial

records.

Storage of all subrecipient

payment information.

E. Award Terms and Conditions

The Award Terms and Conditions of the SLFRF financial assistance agreement sets forth the

compliance obligations for recipients pursuant to the SLFRF statute, the Uniform Guidance,

Treasury’s 2022 final rule, 2023 IFR, the Obligation IFR, and other applicable federal laws and

regulations. Recipients should ensure they remain in compliance with all Award Terms and

Conditions. These obligations include the following items in addition to those described above:

1. SAM.gov Requirements. All eligible recipients are required to have an active registration with

the System for Award Management (“SAM”) (https://www.sam.gov

) pursuant to 2 CFR Part 25.

To ensure timely receipt of funding, Treasury has stated that NEUs who have not previously

registered with SAM.gov may do so after receipt of the award, but before the submission of

mandatory reporting.

2. Recordkeeping Requirements. Generally, your organization must maintain records and financial

documents for five years after all funds have been expended or returned to Treasury, as outlined

in paragraph 4.c. of the Award Terms and Conditions. Treasury may request transfer of records

of long-term value at the end of such period. Wherever practicable, such records should be

collected, transmitted, and stored in open and machine-readable formats.

Your organization must agree to provide or make available such records to Treasury upon request,

and to the Government Accountability Office (“GAO”), Treasury’s Office of Inspector General

(“OIG”), and their authorized representative in order to conduct audits or other investigations.

3. Single Audit Requirements. Recipients and subrecipients that expend more than $750,000 in

Federal awards during their fiscal year will be subject to an audit under the Single Audit Act and

its implementing regulation at 2 CFR Part 200, Subpart F regarding audit requirements.

Note that

the Compliance Supplement provides information on the existing, important compliance

requirements that the federal government expects to be considered as a part of such audit. For

example, the SLFRF Compliance Supplement describes an alternative to the Single Audit for

eligible recipients. Recipients should consult the Compliance Supplement for more information

about the alternative compliance examination engagement. The Compliance Supplement is

routinely updated, and is made available in the Federal Register and on OMB’s website:

https://www.whitehouse.gov/omb/office-federal-financial-management/

Recipients and

subrecipients should consult the Federal Audit Clearinghouse to see examples of Single Audit

submissions.

See flexibility provided in https://www.whitehouse.gov/wp-content/uploads/2021/03/M_21_20.pdf.

For-profit entities that receive SLFRF subawards are not subject to Single Audit requirements. However,

they are subject to other audits as deemed necessary by authorized governmental entities, including Treasury

and Treasury’s OIG.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

4. Civil Rights Compliance. Recipients of Federal financial assistance from the Treasury are

required to meet legal requirements relating to nondiscrimination and nondiscriminatory use of

Federal funds. Those requirements include ensuring that entities receiving Federal financial

assistance from the Treasury do not deny benefits or services, or otherwise discriminate on the

basis of race, color, national origin (including limited English proficiency), disability, age, or sex

(including sexual orientation and gender identity), in accordance with the following authorities:

Title VI of the Civil Rights Act of 1964 (Title VI) Public Law 88-352, 42 U.S.C. 2000d-1 et seq.,

and the Department's implementing regulations, 31 CFR part 22; Section 504 of the Rehabilitation

Act of 1973 (Section 504), Public Law 93-112, as amended by Public Law 93-516, 29 U.S.C. 794;

Title IX of the Education Amendments of 1972 (Title IX), 20 U.S.C. 1681 et seq., and the

Department's implementing regulations, 31 CFR part 28; Age Discrimination Act of 1975, Public

Law 94-135, 42 U.S.C. 6101 et seq., and the Department implementing regulations at 31 CFR

part 23.

In order to carry out its enforcement responsibilities under Title VI of the Civil Rights Act, Treasury

will collect and review information from recipients to ascertain their compliance with the applicable

requirements before and after providing financial assistance. Treasury’s implementing

regulations, 31 CFR part 22, and the Department of Justice (DOJ) regulations,

Coordination of

Non-discrimination in Federally Assisted Programs, 28 CFR part 42, provide for the collection of

data and information from recipients (see 28 CFR 42.406). Treasury may request that non-tribal

recipients submit data for post-award compliance reviews, including information such as a

narrative describing their Title VI compliance status. As explained in Treasury FAQ 12.1, the

award terms and conditions for Treasury’s pandemic recovery programs, including the SLFRF

program, do not impose antidiscrimination requirements on Tribal governments beyond what

would otherwise apply under federal law.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Part 2: Reporting Guidance

There are three types of reporting requirements for the SLFRF program. The report requirements are

approved and documented under OMB PRA number - OMB # 1505-0271.

• Interim Report: Provide initial overview of status and uses of funding. This is a one-time report.

See Section A, page 18.

• Project and Expenditure Report: Report on projects funded, expenditures, and contracts and

subawards equal to or greater than $50,000, and other information. See Section B, page 19.

• Recovery Plan Performance Report: The Recovery Plan Performance Report (the “Recovery

Plan”) will provide information on the projects that large recipients are undertaking with program

funding and how they plan to ensure program outcomes are achieved in an effective, efficient,

and equitable manner. It will include key performance indicators identified by the recipient and

some mandatory indicators identified by Treasury. The Recovery Plan will be posted on the

website of the recipient as well as provided to Treasury. See Section C, page 40.

The reporting threshold is based on the total award amount allocated by Treasury under the SLFRF

program, not the funds received by the recipient as of the time of reporting.

States and territories are also required to submit information on their distributions to NEUs. Please

refer to Section D for additional details.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Table 2: Reporting requirements by recipient type

Tier Recipient Interim Report

Project and

Expenditure

Report

Recovery Plan

Performance

Report

States, U.S. territories,

metropolitan cities and

counties with a

population that exceeds

250,000 residents

By August 31,

2021 or 60

days after

receiving

funding if

funding was

received by

October 15,

with

expenditures by

category.

Note: NEUs

were not

required to

submit an

Interim Report

By January 31,

2022, and then the

last day of the

month after the end

of each quarter

thereafter

Note: NEUs were

not required to

submit a Project

and Expenditure

Report on January

31, 2022. The first

reporting date for

NEUs was April 30,

2022.

By August 31,

2021 or 60 days

after receiving

funding, and

annually

thereafter by

July 31

Metropolitan cities and

counties with a

population below

250,000 residents that

are allocated more than

$10 million in SLFRF

funding, and NEUs that

are allocated more than

$10 million in SLFRF

funding

Tribal Governments that

are allocated more than

$30 million in SLFRF

funding

Tribal Governments that

are allocated less than

$30 million in SLFRF

funding

By April 30, 2022,

and then annually

thereafter

Metropolitan cities and

counties with a

population below

250,000 residents that

are allocated less than

$10 million in SLFRF

funding, and NEUs that

are allocated less than

$10 million in SLFRF

funding

Note: Based on the period of performance, reports will be collected through April 30, 2027. See the specific due

dates listed in Sections B and C.

As mentioned above, the total SLFRF allocations across all sources for a given jurisdiction will be

used to identify that jurisdiction’s Reporting Tier, beginning in April of 2022. Treasury may reach out

to jurisdictions to update Reporting Tiers.

The remainder of this document describes these reporting requirements. User guides describing how

and where to submit required reports are posted at www.treasury.gov/SLFRPReporting

and updated

on a regular basis.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

A. Interim Report

Note: The Interim Reports were submitted under the 2021 IFR.

States, U.S. territories, metropolitan cities, counties, and Tribal governments were required to submit

a one-time interim report with expenditures

by Expenditure Category covering the period from March

3rd to July 31, 2021, by August 31, 2021 or sixty (60) days after first receiving funding if the recipient’s

date of award was between July 15, 2021 and October 15, 2021. The recipient was required to enter

obligations

and expenditures and, for each, select the specific expenditure category from the

available options. See Appendix 3 for Expenditure Categories applicable for the Interim Report.

1. Required Programmatic Data

Recipients were also required to provide the following information if they had or planned to have

expenditures in the following Expenditure Categories.

a. Revenue replacement (EC 6.1

): Key inputs into the revenue replacement formula in the 2021

IFR and estimated revenue loss due to the COVID-19 public health emergency calculated using

the formula in the 2021 IFR as of December 31, 2020.

• Base year general revenue (e.g., revenue in the last full fiscal year prior to the public health

emergency)

• Fiscal year end date

• Growth adjustment used (either 4.1 percent or average annual general revenue growth over

3 years prior to pandemic)

• Actual general revenue as of the twelve months ended December 31, 2020

For purposes of reporting in the SLFRF portal, an expenditure is the amount that has been incurred as a

liability of the entity (the service has been rendered or the good has been delivered to the entity).

For purposes of reporting in the SLFRF portal, an obligation is an order placed for property and services,

contracts and subawards made, and similar transactions that require payment.

See Appendix 3 for the full Expenditure Category (EC) list. Please note that Appendix 3 includes the

expenditure categories under the 2021 IFR, applicable to the Interim Report.

Comparison to reporting for the CRF

This guidance does not change the reporting or compliance requirements pertaining to

the CRF. Reporting and compliance requirements for the SLFRF are separate from

CRF reporting requirements. Differences between CRF and SLFRF include:

• Project, Expenditure, and Subaward Reporting: The SLFRF reporting

requirements leverage the existing reporting regime used for CRF to foster

continuity and provide many recipients with a familiar reporting mechanism. The

data elements for the Project and Expenditure Report will largely mirror those used

for CRF, with some minor exceptions noted in this guidance. The users’ guide will

describe how reporting for CRF funds will relate to reporting for the SLFRF.

• Timing of Reports: CRF reports were due within 10 days of each calendar quarter

end. For quarterly reporters, SLFRF reporting will be due the last day of the month

following the end of the period covered. For annual reporters, SLFRF reporting will

be due on an annual schedule (see table in Section B below).

• Program and Performance Reporting: The CRF reporting did not include any

program or performance reporting. To build public awareness and accountability

and allow Treasury to monitor compliance with eligible uses, some program and

performance reporting is required for SLFRF.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

• Estimated revenue loss due to the COVID-19 public health emergency as of December 31,

2020

• An explanation of how revenue replacement funds were allocated to government services

(Note: additional instructions was provided in the user guide)

In calculating general revenue and the other items discussed above, recipients should have

used audited data if it was available. When audited data was not available, recipients were not

required to obtain audited data if substantially accurate figures could be produced on an

unaudited basis. Recipients should have used their own data sources to calculate general

revenue and did not need to rely on revenue data published by the Census Bureau. Treasury

acknowledges that due to differences in timing, data sources, and definitions, recipients’ self-

reported general revenue figures may differ from those published by the Census Bureau.

Recipients were permitted to provide data on a cash, accrual, or modified accrual basis,

provided that recipients are consistent in their choice of methodology throughout the covered

period and until reporting is no longer required. Recipients’ reporting should align with their own

financial reporting.

In calculating general revenue, recipients should have excluded all intergovernmental transfers

from the federal government. This includes, but is not limited to, federal transfers made via a

State to a locality pursuant to the CRF or SLFRF. To the extent federal funds are passed

through States or other entities or intermingled with other funds, recipients should have

attempted to identify and exclude the federal portion of those funds from the calculation of

general revenue on a best-efforts basis.

Consistent with the broad latitude provided to recipients to use funds for government services to

the extent of reduction in revenue, recipients were required to submit a description of services

provided. This description may be in narrative or in another form, and recipients were

encouraged to report based on their existing budget processes and to minimize administrative

burden. For example, a recipient with $100 in revenue replacement funds available could

indicate that $50 were used for law enforcement operating expenses and $50 were used for

pay-go building of sidewalk infrastructure. As discussed in the 2021 IFR, these services can

include a broad range of services but may not be used directly for pension deposits or debt

service.

Reporting requirements did not require tracking the indirect effects of Fiscal Recovery Funds,

apart from the restrictions on use of Fiscal Recovery Funds to offset a reduction in net tax

revenue. In addition, recipients were required to indicate that Fiscal Recovery Funds were not

used to make a deposit in a pension fund.

B. Project and Expenditure Report

All recipients are required to submit Project and Expenditure Reports.

Note on NEUs: To facilitate reporting, each NEU will need an NEU Recipient Number. This is a unique

identification code for each NEU assigned by the State or territory to the NEU as part of its request

for funding.

1. Quarterly Reporting

The following recipients are required to submit quarterly Project and Expenditure Reports:

• States and U.S. territories

• Tribal governments that are allocated more than $30 million in SLFRF funding

• Metropolitan cities and counties with a population that exceeds 250,000 residents

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

• Metropolitan cities and counties with a population below 250,000 residents that are allocated more

than $10 million in SLFRF funding and NEUs that are allocated more than $10 million in SLFRF

funding

For these recipients, the initial quarterly Project and Expenditure Report covered three calendar

quarters from March 3, 2021 to December 31, 2021 and was required to be submitted to Treasury by

January 31, 2022. The subsequent quarterly reports cover one calendar quarter and must be

submitted to Treasury by the last day of the month following the end of the period covered. Quarterly

reports are not due concurrently with applicable annual reports. Table 3 summarizes the quarterly

report timelines:

Table 3: Quarterly Project and Expenditure Report Timeline

Report

Year

Quarter

Period Covered

Due Date

2021

2 – 4

March 3 – December 31

January 31, 2022

2022

January 1 – March 31

April 30, 2022

2022

April 1 – June 30

July 31, 2022

2022

July 1 – September 30

October 31, 2022

2022

October 1 – December 31

January 31, 2023

2023

January 1 – March 31

April 30, 2023

2023

April 1 – June 30

July 31, 2023

2023

July 1 – September 30

October 31, 2023

2023

October 1 – December 31

January 31, 2024

2024

January 1 – March 31

April 30, 2024

2024

April 1 – June 30

July 31, 2024

2024

July 1 – September 30

October 31, 2024

2024

October 1 – December 31

January 31, 2025

2025

January 1 – March 31

April 30, 2025

2025

April 1 – June 30

July 31, 2025

2025

July 1 – September 30

October 31, 2025

2025

October 1 – December 31

January 31, 2026

2026

January 1 – March 31

April 30, 2026

2026

April 1 – June 30

July 31, 2026

2026

July 1 – September 30

October 31, 2026

2026

October 1 – December 31

April 30, 2027

2. Annual Reporting

The following recipients are required to submit annual Project and Expenditure Reports:

• Tribal governments that are allocated less than $30 million in SLFRF funding

• Metropolitan cities and counties with a population below 250,000 residents that are allocated less

than $10 million in SLFRF funding and NEUs that are allocated less than $10 million in SLFRF

funding

For these recipients, the initial Project and Expenditure Report covered from March 3, 2021 to March

31, 2022 and was required to be submitted to Treasury by April 30, 2022. The subsequent annual

reports cover one calendar year and must be submitted to Treasury by April 30. Table 4 summarizes

the annual report timelines:

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Table 4: Annual Project and Expenditure Report timeline

Report

Period Covered

Due Date

March 3, 2021 – March 31, 2022

April 30, 2022

April 1, 2022 – March 31, 2023

April 30, 2023

April 1, 2023 – March 31, 2024

April 30, 2024

April 1, 2024 – March 31, 2025

April 30, 2025

April 1, 2025 – March 31, 2026

April 30, 2026

April 1, 2026 – December 31, 2026

April 30, 2027

3. Required Information

The following information is required in Project and Expenditure Reports for both quarterly and annual

reporting:

Projects: Provide information on all SLFRF funded projects. Projects are defined as a grouping of

closely related activities that together are intended to achieve a specific goal or are directed toward

a common purpose. These activities can include new or existing eligible government services or

investments funded in whole or in part by SLFRF funding. For each project, the recipient is required

to enter the project name, identification number (created by the recipient), project expenditure

category (see Appendix 1), description, and status of completion. Project descriptions must

describe the project in sufficient detail to provide an understanding of the major activities that will

occur, and must be between 50 and 250 words.

Project descriptions for the emergency relief from natural disasters eligible use category must

describe the natural disaster the recipient is responding to, including the type of event, and how

the emergency relief is related to and reasonably proportional to the natural disaster.

a. Projects should be defined to include only closely related activities directed toward a common

purpose. Recipients should review the Required Programmatic Data described in 3.g. below and

define their projects at a sufficient level of granularity.

Note: For each project, the recipient is asked to select the appropriate Expenditure Category based

on the scope of the project (see Appendix 1). Projects should be scoped to align to a single

Expenditure Category. For select Expenditure Categories, the recipient also is asked to provide

additional programmatic data (described further below).

b. Obligations and Expenditures: Once a project is entered the recipient will be able to report on the

project’s obligations and expenditures. Recipients will be asked to report:

• Current period obligation

• Cumulative obligation

• Current period expenditure

• Cumulative expenditure

c. Estimates: As discussed in SLFRF FAQs 17.8, 17.11, and 17.16, among others, recipients may

document an obligation incurred by December 31, 2024 to expend SLFRF funds in 2025 and 2026

by reporting an estimate to Treasury of future expenses. Recipients are not required to submit

estimates for the costs discussed below; rather, they must submit such estimates if they want to

use, to cover such costs, any funds that they would otherwise have to return to Treasury after 2024

as unobligated. As discussed below, the estimate will be reported in both the obligation amount

for a particular project and as a separate line item within the project for the specific type of estimate.

1. Personnel Costs

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

For projects involving personnel costs to be expended in 2025 and 2026 for positions

established and filled by December 31, 2024, recipients may report an estimate of such

expenses and retain funds that they would otherwise have to return to Treasury after 2024 as

unobligated. See SLFRF FAQs 17.7 and 17.8 for additional details about determining this

amount and preparing the estimate. Recipients should only report an estimate if funds are not

obligated for those personnel costs through another mechanism, such as through a subaward,

contract, or interagency agreement. For each project’s reported obligation, the estimate must

be limited to estimated personnel costs associated with the individual project and may not

include estimated costs associated with other projects.

For this estimate, recipients will be asked to report:

• Estimated personnel expenditures in 2025 and 2026

• Current period expenditures pursuant to the estimate*

• Cumulative expenditures pursuant to the estimate*

• Number of full-time-equivalent (FTE) positions for which funds are obligated

• Explanation of how the estimate was determined

• Brief description of the job categories covered by the estimate

* Figures denoted by an asterisk (*) will be zero in the Q2-Q4 2024 reporting periods.

Estimated personnel expenditures should also be reflected in the cumulative obligation amount

and current period obligation amount discussed in subsection (b).

Alongside these reporting requirements, a recipient must document and keep on file a

reasonable justification for how the estimate was determined. This reasonable justification is

distinct from the explanation of how the estimate was determined, which will be submitted in

the Project & Expenditure Report. The explanation submitted in the Project & Expenditure

Report should provide a summary of how the recipient calculated the estimate. The reasonable

justification kept on file may include a discussion of the recipient’s expectations that eligible

personnel costs will continue to be paid in future periods and may include payroll documents,

project plans, or other applicable documents.

In determining an appropriate estimate for expenses in 2025 and 2026, a recipient may wish

to consult the following sections of the Uniform Guidance:

• 2 CFR 200.403

– Factors affecting allowability of costs

• 2 CFR 200.404 – Reasonable costs

• 2 CFR 200.430(i) – Standards for Documentation of Personnel Expenses

Please note that recipients may also obligate funds for estimated personnel costs related to

compliance with certain administrative and legal requirements of SLFRF, as described in

section k, item 15 below. If the personnel costs will be expended in relation to an employee

engaged exclusively in compliance with relevant administrative and legal requirements of

SLFRF, as discussed in FAQ 17.10

, a recipient should report such personnel cost obligations

under EC 7.3. A recipient should ensure that reported obligations are not duplicated across

multiple projects.

2. Contract Change Orders or Contingencies

As discussed in FAQ 17.17, recipients may use SLFRF funds to cover cost increases

attributable to a contract entered into by December 31, 2024, if the contract expressly provides

for change orders or contract contingencies. For such contracts, a recipient may report an

estimate of the amount that may be necessary to cover changes or contingencies in 2025 and

2026 and retain funds that they would otherwise have to return to Treasury after 2024 as

unobligated. The estimate must be limited to estimated costs associated with change orders or

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

contingencies for the contract(s) associated with the individual project reported, and may not

cover expected costs associated with other contracts reported under separate projects.

For this estimate, recipients will be asked to report:

• Estimated expenditures to cover contract change orders and contingencies in 2025 and

2026

• Current period expenditures pursuant to the estimate*

• Cumulative expenditures pursuant to the estimate*

• Explanation of how the estimate was determined

* Figures denoted by an asterisk (*) will be zero in the Q2-Q4 2024 reporting periods.

Estimated contract change order and contingency expenditures under this provision should

also be reflected in the cumulative obligation amount and current period obligation amount

discussed in subsection (b).

If a recipient previously reported a project with contingency or reserve funds included in the

obligated amount, and the recipient was not required to set aside that amount by the contract

itself, the recipient must edit the previous project that incorrectly reported the obligation. The

recipient may add to the project an estimate of the amount that may be necessary to cover

changes or contingencies in 2025 and 2026 using the procedure described above if the contract

meets the requirements described in SLFRF FAQ 17.16.

Alongside these reporting requirements, a recipient must document and keep on file a

reasonable justification for how the estimate was determined. This reasonable justification is

distinct from the explanation of how the estimate was determined, which will be submitted in

the Project & Expenditure Report. The explanation submitted in the Project & Expenditure

Report should provide a summary of how the recipient calculated the estimate. The reasonable

justification kept on file may include a discussion of the recipient’s expectations that eligible

personnel costs will continue to be paid in future periods and may include payroll documents,

project plans, or other applicable documents.

In determining an appropriate estimate for expenses in 2025 and 2026, a recipient may wish

to consult the following sections of the Uniform Guidance:

• 2 CFR 200.403

– Factors affecting allowability of costs

• 2 CFR 200.404 – Reasonable costs

3. Certain Administrative and Legal Costs

Please see the guidance in section k, item 15 below.

d. Project Status: Once a project is entered the recipient will be asked to report on project status each

reporting period, in four categories:

• Not Started

• Completed less than 50 percent

• Completed 50 percent or more

• Completed

e. Program Income: Recipients should report the program income earned and expended to cover

eligible project costs, if applicable. See the discussion above and in SLFRF FAQs 13.11 and 17.21.

f. Adopted Budget (States, U.S. territories, metropolitan cities and counties with a population that

exceeds 250,000 residents only): Each state, territory and metropolitan city and county with a

population that exceeds 250,000 residents will provide the budget adopted for each project by its

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

jurisdiction associated with SLFRF funds. Treasury will use this information to better understand

the intended impact, identify opportunities for outreach, and understand the recipient’s progress in

program implementation. Treasury is not approving or pre-approving budgets.

• Recipients will enter the Adopted Budget based on information that exists currently in the

recipient’s financial systems and the recipient’s established budget process. Treasury

understands that recipients may use different budget processes. For example, a recipient

may consider a project budgeted once a legislature has appropriated funds; whereas another

recipient may consider a project budgeted at the moment when the funds have been

obligated.

• Additional information is provided on the differences between Adopted Budget, Obligations,

and Expenditures as part of the user guide posted at www.treasury.gov/SLFRPReporting

g. P

roject Demographic Distribution (applicable to Public Health and Negative Economic Impact ECs:

EC 1.1-2.37)– Collection began April 2022

Recognizing the disproportionate public health and negative economic impacts of the pandemic

on many households, communities, and other entities, recipients must report whether certain types

of projects are targeted to impacted and disproportionately impacted communities. Recipients will

be asked to respond to the following:

a. What Impacted and/or Disproportionally Impacted population does this project primarily

serve? Please select the population primarily served.

b. If this project primarily serves more than one Impacted and/or Disproportionately Impacted

population, please select up to two additional populations served.

Recipients will select from the following options:

Impacted

Disproportionately Impacted

Public Health

• General Public

Assistance to

Households

• Low- or-moderate income

households or populations

• Households that experienced

unemployment

• Households that experienced

increased food or housing insecurity

• Households that qualify for certain

federal programs

• For services to address lost

instructional time in K-12 schools:

• Low-income households and

populations

• Households and populations

residing in Qualified Census Tracts

• Households that qualify for certain

federal programs

• Households receiving services

provided by Tribal governments

Low or moderate-income households and communities are those with (i) income at or below 300 percent of the Federal

Poverty Guidelines for the size of the household based on the most recently published poverty guidelines by the

Department of Health and Human Services (HHS) or (ii) income at or below 65 percent of the Area Median Income for the

county and size of household based on the most recently published data by the Department of Housing and Urban

Development (HUD).

For Impacted households, these programs are Children’s Health Insurance Program (“CHIP”); Childcare Subsidies

through the Child Care and Development Fund (“CCDF”) Program; Medicaid; National Housing Trust Fund (“HTF”), for

affordable housing programs only; Home Investment Partnerships Program (“HOME”), for affordable housing programs

only.

Low-income households and communities are those with (i) income at or below 185 percent of the Federal Poverty

Guidelines for the size of the household based on the most recently published poverty guidelines by HHS or (ii) income at

or below 40 percent of Area Median Income for its county and size of household based on the most recently published

data by HUD.

For Disproportionately Impacted households, these programs are Temporary Assistance for Needy Families (“TANF”),

Supplemental Nutrition Assistance Program (“SNAP”), Free- and Reduced-Price Lunch (“NSLP”) and/or School Breakfast

(“SBP”) programs, Medicare Part D Low-Income Subsidies, Supplemental Security Income (“SSI”), Head Start, Special

Supplemental Nutrition Program for Women, Infants, and Children (“WIC”), Section 8 Vouchers, Low-Income Home

Energy Assistance Program (“LIHEAP”), and Pell Grants.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Impacted

Disproportionately Impacted

any students that lost access to in-

person instruction for a significant

period of time

• Other households or populations

that experienced a negative

economic impact of the pandemic

other than those listed above

(please specify)

• Households residing in the U.S.

territories or receiving services from

these governments

• For services to address educational

disparities, Title I eligible schools

• Other households or populations

that experienced a disproportionate

negative economic impact of the

pandemic other than those listed

above (please specify)

Assistance to

Small

Businesses

• Small businesses that experienced a

negative economic impact of the

pandemic

• Classes of small businesses

designated as negatively

economically impacted by the

pandemic (please specify)

• Small businesses operating in

Qualified Census Tracts

• Small businesses operated by Tribal

governments or on Tribal lands

• Small businesses operating in the

U.S. territories

• Other small businesses

disproportionately impacted by the

pandemic (please specify)

Assistance to

Non

-Profits

• Non-profits that experienced a

negative economic impact of the

pandemic (please specify)

• Classes of non-profits designated as

negatively economically impacted by

the pandemic (please specify)

• Non-profits operating in Qualified

Census Tracts

• Non-profits operated by Tribal

governments or on Tribal lands

• Non-profits operating in the U.S.

territories

• Other non-profits disproportionately

impacted by the pandemic (please

specify)

Aid to Impacted

Industries

• Travel, tourism, or hospitality sectors

(including Tribal development

districts)

• Industry outside the travel, tourism,

or hospitality sectors that

experienced a negative economic

impact of the pandemic (please

specify)

N/A

h. Subawards, Contracts, Grants, Loans, Transfers, Interagency Agreements, and Direct Payments:

Each recipient shall also provide detailed obligation and expenditure information for any contracts

and grants awarded, loans issued, transfers made to other government entities, interagency

agreements entered into pursuant to SLFRF FAQ 17.6, and direct payments made by the recipient

that are equal to or greater than $50,000. Please note that as outlined in FAQ 13.14, Treasury is

not collecting subaward data for projects categorized under the revenue loss eligible use category.

Recipients do not need to submit separate monthly subaward reports to FSRS.gov as required

pursuant to the 2 CFR Part 170, Appendix A award term regarding reporting subaward and

For educational services and other efforts to address educational disparities, Treasury will recognize Title I eligible

schools as disproportionately impacted and responsive services that support the school generally or support the whole

school service as eligible. “Title I eligible schools” means schools eligible to receive services under section 1113 of Title I,

Part A of the Elementary and Secondary Education Act of 1965, as amended (20 U.S.C. 6313), including schools served

under section 1113(b)(1)(C) of that Act.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

executive compensation, which is included in the SLFRF Award Terms and Conditions. Treasury

will submit this reporting on behalf of recipients using the $50,000 reporting threshold, timing, and

data elements discussed in this guidance. If recipients choose to continue reporting to FSRS.gov

in addition to reporting directly to Treasury on these funds, they may do so and will be asked to

notify Treasury as part of their quarterly submission.

In general, recipients will be asked to provide the following information for each Contract, Grant,

Loan, Transfer, Interagency Agreement, or Direct Payment equal to or greater than $50,000:

• Subrecipient identifying and demographic information (e.g., location and UEI/TIN)

• Award number (e.g., Award number, Contract number, Loan number)

• Award date, type, amount, and description

• Award payment method (reimbursable or lump sum payment(s))

• For loans, expiration date (date when loan expected to be paid in full)

• Primary place of performance

• Related project name(s)

• Related project identification number(s) (created by the recipient)

• Period of performance start date

• Period of performance end date

• Quarterly obligation amount

• Quarterly expenditure amount

• Project(s)

• Additional programmatic performance indicators for select Expenditure Categories (see below)

Aggregate reporting is required for contracts, grants, transfers made to other government entities,

interagency agreements, loans, and direct payments that are below $50,000. This information will

be accounted for by Expenditure Category at the project level. Note that all obligations and

expenditures made directly to individuals, regardless of dollar amount, should be included in

aggregate reporting.

For interagency agreements, recipients will be required to attest that the agreement meets the

requirements for those transactions described in FAQ 17.6

and indicate which of the following

criteria the interagency agreement meets:

• It imposes conditions on the use of funds by the agency, department, or part of government

receiving funds to carry out the program

• It governs the provision of funds from one agency, department, or part of government to another

to carry out an eligible use of SLFRF funds

• it governs the procurement of goods or services by one agency, department, or part of

government from another

As required by the 2 CFR Part 170, Appendix A award term regarding reporting subaward and

executive compensation, recipients must also report the names and total compensation of their

five most highly compensated executives and their subrecipients’ executives for the preceding

completed fiscal year if (1) the recipient received 80 percent or more of its annual gross revenues

from Federal procurement contracts (and subcontracts) and Federal financial assistance subject

to the Transparency Act, as provided by 2 CFR 170.320 (and subawards), and received

$25,000,000 or more in annual gross revenues from Federal procurement contracts (and

subcontracts) and Federal financial assistance subject to the Transparency Act (and subawards),

and (2) if the information is not otherwise public. In general, most SLFRF recipients are

governmental entities with executive salaries that are already disclosed, so no additional

information would be required to be reported for them. The recipient is responsible for the

subrecipients’ compliance with registering and maintaining an updated profile on SAM.gov.

In accordance with the SLFRF Financial Assistance agreement, recipients must include a

subrecipient’s Unique Entity Identifier (UEI) in the SLFRF Project and Expenditure report.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Beginning with the October 2023 report, subrecipients reported without a UEI will require recipients

to select a justification for the missing UEI for the reported subrecipient. The justifications are as

follows:

• Subrecipient facing delay in obtaining UEI from the U.S. General Services Administration

• Recipient was delayed in collecting a UEI from its subrecipient due to recipient’s internal control

issue and recipient must describe the internal control issue and planned corrective action.

• Recipient was unable to contact subrecipient:

o Services the subrecipient provided were completed after April 4, 2022 and recipient is

continuing to work to collect its subrecipient’s UEI

o Services the subrecipient provided were completed prior to April 4, 2022

Recipients will also be required to report a timeline for obtaining and reporting the UEI for all reasons

excluding services that were completed prior to April 4, 2022.

i. Civil Rights Compliance: Treasury will request information on recipients’ compliance with Title VI

of the Civil Rights Act of 1964, as applicable, on an annual basis. This information may include a

narrative describing the recipient’s compliance with Title VI, along with other questions and

assurances. This collection does not apply to Tribal governments

j. Ineligible Activities: Tax Offset Provision (States and territories only): Section 602(c)(2)(A) of the

Social Security Act prohibits a State or territory from using SLFRF funds to directly or indirectly

offset a reduction in the net tax revenue of the State or territory resulting from a change in law,

regulation, or administrative interpretation during the covered period (the “Tax Offset Provision”).

The 2022 Final Rule implements the Tax Offset Provision at 31 CFR § 35.8. Violations of the Tax

Offset Provision may be subject to recoupment. The following information is required for Treasury

to ensure SLFRF funding is not used for ineligible activities related to the Tax Offset Provision.

For each reporting year, in the quarterly reporting cycle occurring 90 days after the end of the

recipient’s fiscal year, States and territories will report certain items related to the Tax Offset

Provision, as detailed below. For example, if a recipient’s fiscal year ends June 30, 2022,

reporting on the Tax Offset Provision for fiscal year 2022 will be due in October 2022. All States

and territories reported on the Tax Offset Provision for fiscal year 2021 in July 2022.

As indicated in the 2022 final rule, Treasury is implementing a tiered approach to reporting on the

Tax Offset Provision, which is described below. Although Treasury is implementing a tiered

approach to reporting, recipients should maintain records to support their compliance with the

Tax Offset Provision.

The terms “reporting year,” “baseline,” “covered change,” “covered period,” “net reduction in total

spending,” and “tax revenue” are defined in the 2022 Final Rule, 31 CFR § 35.3. For purposes of

calculating a net reduction in total spending, total spending for the fiscal year ending 2019 should

be reported on an inflation-adjusted basis, consistent with the 2022 Final Rule. Similarly, for

purposes of calculating baseline tax revenue, tax revenue for the fiscal year 2019 should be

reported on an inflation-adjusted basis, consistent with the 2022 Final Rule.

For purposes of reporting actual tax revenue for the requested fiscal year and baseline tax

revenue for the fiscal year ending 2019,

(a) if available, recipients should report information

using audited financials and (b) recipients may provide data on a cash, accrual, or modified

accrual basis, but must be consistent in their approach across all reporting periods. Similarly, for

Please note, as explained in Treasury FAQ 12.1, that the award terms and conditions for Treasury’s

pandemic recovery programs, including the SLFRF, do not impose antidiscrimination requirements on Tribal

governments beyond what would otherwise apply under federal law.

Tax revenue for fiscal year ending 2019 is relevant for calculating the recipient’s baseline.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

purposes of calculating a net reduction in total spending, recipients should report data using

audited financials where available.

Recipients will first answer a series of summary questions to determine the tiering of their tax

offset reporting:

Summary Questions

• Do you have revenue-reducing covered change(s) to report for the requested fiscal year and

for future fiscal years? Yes/No

o If no, recipients have no further reporting requirements in the tax offset section.

(Remaining summary questions will be greyed out).

o If yes, recipients will complete part 1 and additional fields.

• Is the aggregate value of your revenue-reducing covered change(s) for the requested fiscal

year less than the de minimis? Yes/No.

o If yes, recipients will complete parts 1 and 2, and no further reporting is required in

the tax offset section. (Remaining summary questions will be greyed out).

o If no, recipients will complete parts 1, 2 and additional fields.

• Do you have a reduction in net tax revenue for the requested fiscal year, meaning that actual

tax revenue for the requested fiscal year is less than baseline tax revenue? Yes/No.

o If yes, recipients will complete parts 1, 2, and 3 and additional fields.

o If no, recipients will complete parts 1, 2, and 3, and no further reporting is required in

the tax offset section. (Remaining summary questions will be greyed out).

• Do you have revenue-increasing covered change(s) and/or covered spending cuts to report

for the requested fiscal year? Yes/No

o If yes, recipients will complete parts 1, 2, 3, and 4.

o If no, recipients will complete the revenue reduction cap.

Reporting Part 1: Revenue-reducing Covered Changes

• Do you have revenue-reducing covered change(s) to report for the requested fiscal year and

for future fiscal years? Yes/No

o If yes, complete grid or upload spreadsheet with the name of each revenue-reducing

covered change and the value of the revenue-reducing covered change for the

requested fiscal year and for future fiscal years.

o If no, a recipient has no revenue-reducing covered changes to report, no additional

reporting is required.

• Enter in the aggregate value of all revenue-reducing covered change(s) for the requested

fiscal year.

Revenue-reducing Covered Changes: Guidance

For each reporting year, a recipient must report the value of covered changes that the recipient

predicts will have the effect of reducing tax revenue in a given reporting year (revenue-reducing

covered changes), similar to the way it would in the ordinary course of its budgeting process.

The value of these revenue-reducing covered changes may be reported based on estimated

values produced by a budget model, incorporating reasonable assumptions, that aligns with the

recipient government’s existing approach for measuring the effects of fiscal policies, and that

measures relative to a current law baseline. The revenue-reducing covered changes may also

be reported based on actual values using a statistical methodology to isolate the change in year-

The 2022 final rule defines covered change. “Covered change means a change in law, regulation, or

administrative interpretation that reduces any tax (by providing for a reduction in a rate, a rebate, a deduction,

a credit, or otherwise) or delays the imposition of any tax or tax increase. A change in law includes any final

legislative or regulatory action, a new or changed administrative interpretation, and the phase-in or taking

effect of any statute or rule if the phase-in or taking effect was not prescribed prior to the start of the covered

period.”

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

over-year revenue attributable to the covered change(s), relative to the current law baseline

prior to the change(s). Estimation approaches should not use dynamic methodologies that

incorporate the projected effects of the policies on macroeconomic growth. In general and where

possible, reported values should be produced by the agency of the recipient government

responsible for estimating the costs and effects of fiscal policy changes. Recipients must

maintain records regarding the identification and predicted effects of revenue-reducing covered

changes.

Reporting Part 2: Baseline Revenue and De Minimis Threshold

• Enter Baseline Revenue:

• Enter in the aggregate value of the revenue-reducing covered change(s) for the requested

fiscal year as a percentage of baseline revenue:

• Is the aggregate value of the revenue-reducing covered change(s) for the requested fiscal

year less than one percent of baseline revenue? Y/N

o If yes, a recipient’s aggregate value of the revenue-reducing covered changes in the

reporting year is less than the de minimis threshold, and no additional reporting is

required.

Baseline Revenue: Guidance

Baseline has the meaning defined in the 2022 Final Rule, 31 CFR 35.3.

Recipients must determine whether the aggregate value of the revenue-reducing covered

changes in the reporting year is less than one percent of baseline revenue (the de minimis

threshold).

Reporting Part 3: Actual Tax Revenue and Reduction in Net Tax Revenue

• Enter Actual Tax Revenue for the requested fiscal year:

• Enter Reduction in Net Tax Revenue: baseline revenue minus actual tax revenue

o If the value of the reduction in net tax revenue is zero or negative (meaning that

actual tax revenue is equal to or greater than baseline revenue), no additional

reporting is required.

Actual Tax Revenue: Guidance

Actual tax revenue means the tax revenue received by the recipient government in the reporting

year. Tax revenue has the meaning defined in the 2022 Final Rule, 31 CFR 35.3.

Reduction in Net Tax Revenue: Guidance

The reduction in net tax revenue is equal to baseline revenue minus actual tax revenue in each

reporting year. If this value is zero or negative, there is no reduction in net tax revenue.

Reporting Part 4: Revenue-increasing Covered Changes and Covered Spending Cuts

• Do you have revenue-increasing covered change(s) and/or covered spending cuts to report

for the requested fiscal year? Yes/No.

• If yes, complete grid or upload spreadsheet with the name of each revenue-increasing

covered change and the value.

• Enter in the aggregate value of revenue-increasing covered change(s):

• Enter net reduction in total spending for the requested fiscal year:

• Complete grid or upload spreadsheet of specific spending cuts and the corresponding

“reporting unit”, including the name of the reporting unit, description of the spending cut, the

amount of the reduction in spending in the reporting unit for the reporting year relative to its

inflation-adjusted FY 2019 level, the amount of any Fiscal Recovery Funds spent in the

reporting unit in the reporting year, and the amount by which the reduction in spending in the

reporting unit in the reporting year exceeds the Fiscal Recovery Funds spent in the reporting

unit in the reporting year, if at all.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

• Enter the aggregate value of covered spending cuts.

• Enter the aggregate value of revenue-increasing covered changes + the aggregate value of

covered spending cuts.

• Enter the total value of revenue-reducing covered changes minus the total of (aggregate

value of revenue-increasing covered changes + aggregate value of covered spending cuts).

• Is the aggregate value of revenue-reducing covered changes minus the total of (aggregate

value of revenue-increasing changes + aggregate value of covered spending cuts) negative

or equal to zero? (Yes/No)

o If yes, recipients have no further reporting requirements related to the Tax Offset

Provision.

o If no, recipients must move on to the calculation of the revenue reduction cap.

Revenue-increasing covered changes: Guidance

If a recipient has revenue-reducing covered changes, the aggregate value of which exceed the

de minimis threshold, and its actual tax revenue does not exceed baseline tax revenue, a

recipient must report the value of covered changes that have had or that the recipient predicts

will have the effect of increasing tax revenue in a given reporting year (revenue-increasing

covered changes), similar to the way it would in the ordinary course of its budgeting process.

The value of these revenue-increasing covered changes may be reported based on estimated

values produced by a budget model, incorporating reasonable assumptions, that aligns with the

recipient’s existing approach for measuring the effects of fiscal policies, and that measures

relative to a current law baseline. The revenue-increasing covered changes may also be

reported based on actual values using a statistical methodology to isolate the change in year-

over-year revenue attributable to the revenue-increasing covered change(s), relative to the

current law baseline prior to the change(s). Estimation approaches should not use dynamic

methodologies that incorporate the projected effects of the policies on macroeconomic growth.

In general and where possible, reporting should be produced by the agency of the recipient

responsible for estimating the costs and effects of fiscal policy changes. Recipients should

maintain records regarding revenue-increasing covered changes and estimates of such

changes.

Net reduction in total spending, and tables of specific spending cuts: Guidance

Recipients may cut spending in certain areas to pay for revenue-reducing covered changes, up

to the amount of the recipient’s net reduction in total spending. To calculate the amount of

spending cuts that are available to offset a reduction in tax revenue, the recipient must first

consider whether there has been a reduction in total net spending, excluding Fiscal Recovery

Funds (net reduction in total spending). As defined in the 2022 Final Rule, 35 CFR 35.3, net

reduction in total spending is measured as the recipient government’s total spending for a given

reporting year excluding Fiscal Recovery Funds, subtracted from its total spending for its fiscal

year ending in 2019, adjusted for inflation using the Bureau of Economic Analysis’s Implicit Price

Deflator for the gross domestic product of the United States for that reporting year. If that

calculation yields a positive value, there has been a net reduction in total spending; if it yields

zero or a negative value, there has not been a net reduction in total spending. If there has been

no net reduction in total spending, a recipient will have no spending cuts to offset a reduction in

net tax revenue.

Next, a recipient must determine and aggregate the value of spending cuts in each “reporting

unit.” “Reporting units” are departments, agencies, or authorities of the recipient’s government.

For each reporting unit, the recipient must report (1) the amount of the reduction in spending in

the reporting unit for the reporting year relative to its inflation-adjusted FY 2019 level, (2) the

amount of any Fiscal Recovery Funds spent in the reporting unit in the reporting year, and (3)

the amount by which the reduction in spending in the reporting year exceeds the Fiscal

Recovery funds spent in the reporting unit in the reporting year. If a recipient has not spent

amounts received from the Fiscal Recovery Funds in a reporting unit, the full amount of the

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reduction in spending counts as a covered spending cut and may be included in the aggregate

value of spending cuts. If the recipient has spent amounts received from the Fiscal Recovery

Funds, such amounts generally would be deemed to have replaced the amount of spending cut,

and only reductions in spending above the amount of Fiscal Recovery Funds spent on the

reporting unit would be eligible to offset a reduction in net tax revenue. Only such amounts

above the amount of Fiscal Recovery Funds spent on the reporting unit should be included in

the aggregate value of spending cuts.

To align with existing reporting and accounting, the 2022 Final Rule considers the department,

agency, or authority from which spending has been cut and whether the recipient government

has spent amounts received from the Fiscal Recovery Funds on that same department, agency,

or authority. Some commenters on the 2021 interim final rule argued that the methodology for

identifying offsetting spending cuts at the department, agency, or authority level was too

restrictive, but as discussed in the 2022 final rule, Treasury maintained the approach of requiring

this reporting at the department, agency, or authority level. Recipients are encouraged to define

reporting units in a manner consistent with their existing budget process and should, to the

extent possible, report using the same reporting unit in each reporting year. Spending cuts must

be reported relative to FY 2019 spending levels, adjusted for inflation, and excluding Fiscal

Recovery Funds from reporting year spending levels.

Recipients should maintain records regarding spending cuts.

Reporting Part 5: Revenue Reduction Cap

The “revenue reduction cap,” together with Part 3, ensures that recipient governments can use

organic revenue growth to offset the cost of revenue-reducing covered changes. If, based on the

calculations completed so far, a recipient has not yet demonstrated how its revenue-reducing

covered changes were offset by non-SLFRF sources, the reporting portal will auto-calculate the

revenue reduction cap, which will be the lesser of the following two amounts:

• Reduction in Net Tax Revenue (baseline tax revenue minus actual tax revenue) [pre-

populated from Part 3] and

• Aggregate Value of revenue-reducing covered changes minus (total of (aggregate value of

revenue-increasing changes + aggregate value of covered spending cuts) [pre-populated

from Part 4].

k. Required Programmatic Data (other than water, sewer, and broadband infrastructure projects):

For all projects listed under the following Expenditure Categories (see Appendix 1), the

information listed must be provided in each report.

1. Public Health and Negative Economic Impact (EC 1.1-3.5) - Collection began in April 2022

• Brief description of structure and objectives of assistance program(s), including public

health or negative economic impact experienced

• Brief description of how a recipient’s response is related and reasonably proportional to a

public health or negative economic impact of COVID-19.

Note: The 2022 final rule presumes that all enumerated eligible uses for programs and

services, including COVID-19 mitigation and prevention programs and services, are

reasonably proportional responses to the harm identified unless a response is grossly

disproportionate to the type or extent of harm experienced. Many of the Eligibility

Categories encompass multiple specific enumerated eligible uses and may be provided to

a variety of populations. For example, EC 2.13 Healthy Childhood Environments: Services

to Foster Youth or Families Involved in Child Welfare System includes a wide array of

financial, educational, child development, or health supports, or other supports necessary,

Please note that capital expenditures are not considered “programs and services” and are not presumed to

be reasonably proportional responses to an identified harm except as provided in the 2022 final rule.

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including supports for kinship care, and may be provided to foster youth and/or families

involved in the child welfare system. Between these two fields above, recipients should

provide enough information to identify the type of enumerated eligible use being provided

within the EC (e.g., kinship care support services), the public health or economic impact

experienced, who the program and/or service is being provided to, and what services are

being provided (e.g., respite resources). For enumerated eligible uses, recipients are not

required to provide substantive documentation that the response is related and reasonably

proportional in the Project and Expenditure Report.

2. Capital Expenditures (EC 1.1-3.5) - Collection began in January 2022, with additional fields

required starting in July 2022

• Does this project include a capital expenditure? (Collection began in January 2022)

• Total expected capital expenditure, including pre-development costs, if applicable

(Collection began in January 2022)

• Type of capital expenditure, based on the following enumerated uses (Collection began in

July 2022):

 COVID-19 testing sites and laboratories, and acquisition of related equipment

 COVID-19 vaccination sites

 Medical facilities generally dedicated to COVID-19 treatment and mitigation (e.g.,

emergency rooms, intensive care units, telemedicine capabilities for COVID-19

related treatment)

 Temporary medical facilities and other measures to increase COVID-19 treatment

capacity, including related construction costs

 Acquisition of equipment for COVID-19 prevention and treatment, including

ventilators, ambulances, and other medical or emergency services equipment

 Emergency operations centers and acquisition of emergency response equipment

(e.g., emergency response radio systems)

 Installation and improvement of ventilation systems in congregate settings, health

facilities, or other public facilities

 Public health data systems, including technology infrastructure

 Adaptations to congregate living facilities, including skilled nursing facilities, other

long-term care facilities, incarceration settings, homeless shelters, residential foster

care facilities, residential behavioral health treatment, and other group living

facilities, as well as public facilities and schools (excluding construction of new

facilities for the purpose of mitigating spread of COVID-19 in the facility)

 Mitigation measures in small businesses, nonprofits, and impacted industries (e.g.,

developing outdoor spaces)

 Behavioral health facilities and equipment (e.g., inpatient or outpatient mental health

or substance use treatment facilities, crisis centers, diversion centers)

 Technology and equipment to allow law enforcement to efficiently and effectively

respond to the rise in gun violence resulting from the pandemic

 Affordable housing, supportive housing, or recovery housing development

 Food banks and other facilities primarily dedicated to addressing food insecurity

 Transitional shelters (e.g., temporary residences for people experiencing

homelessness)

 Devices and equipment that assist households in accessing the internet (e.g.,

tablets, computers, or routers)

 Childcare, daycare, and early learning facilities

 Job and workforce training centers

 Improvements to existing facilities to remediate lead contaminants (e.g., removal of

lead paint)

 Medical equipment and facilities designed to address disparities in public health

outcomes (includes primary care clinics, hospitals, or integrations of health services

into other settings)

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 Parks, green spaces, recreational facilities, sidewalks, pedestrian safety features

like crosswalks, streetlights, neighborhood cleanup, and other projects to revitalize

public spaces

 Rehabilitations, renovation, remediation, cleanup, or conversions of vacant or

abandoned properties

 Schools and other educational facilities or equipment to address educational

disparities

 Technology and tools to effectively develop, execute, and evaluate government

programs

 Technology infrastructure to adapt government operations to the pandemic (e.g.,

video-conferencing software, improvements to case management systems or data

sharing resources), reduce government backlogs, or meet increased maintenance

needs

 Other (please specify)

• For recipients (other than Tribal governments) investing in projects with total expected

capital expenditures for an enumerated eligible use of $10 million or more, as well as

projects with total expected capital expenditures for an “other” use of $1 million or more,

provide a written justification (Collection began in July 2022)

• For projects with total expected capital expenditures of over $10 million, provide labor

reporting as outlined for infrastructure projects on pages 37 and 38 (Collection began July

2022)

3. Household Assistance (EC 2.1-2.8) – Collection began January 2022:

• Number of households served (by program if recipient establishes multiple separate

household assistance programs)

4. Small Business Economic Assistance (EC 1.8, 2.29-2.33) – Collection began April 2022

• Number of small businesses served (by program if recipient establishes multiple separate

small business assistance programs)

5. Assistance to Non-Profits (EC 1.9, 2.34)- Collection began April 2022

• Number of Non-Profits served (by program if recipient establishes multiple separate non-

profit assistance programs)

6. Aid to Travel, Tourism, and Hospitality or Other Impacted Industries (EC 1.10, 2.35-2.36) –

Collection began April 2022:

• If aid is provided to industries other than travel, tourism, and hospitality (EC 2.36),

describe if the industry experienced at least 8 percent employment loss from pre-

pandemic levels, or the industry is experiencing comparable or worse economic impacts

as the national tourism, travel, and hospitality industries as of the date of the 2022 final

rule, and rationale for providing aid to the industry

• For each subaward:

o Sector of employer (Note: additional detail, including list of sectors, to be provided in

the user guide posted to www.treasury.gov/SLFRP

)

o Purpose of funds (e.g., payroll support, safety measure implementation)

7. Education Assistance (EC 2.14, 2.24-.2.27) – Collection began in January 2022:

• The National Center for Education Statistics (“NCES”) School ID or NCES District ID. List

the School District if all schools within the school district received some funds. If not all

schools within the school district received funds, list the School ID of the schools that

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received funds. These can allow evaluators to link data from the NCES to look at school-

level demographics and, eventually, student performance.

8. Payroll for Public Health and Safety Employees (EC 3.1) – Collection began in January 2022:

• Number of government FTEs responding to COVID-19 supported under this authority

9. Rehiring Public Sector Staff (EC 3.2) – Collection began in January 2022:

• Number of FTEs rehired by governments under this authority

10. Premium Pay (both Public Sector EC 4.1 and Private Sector EC 4.2) – Collection began in

January 2022; additional field began in April 2022

• List of sectors designated as critical to protecting the health and well-being of residents by

the chief executive of the jurisdiction, if beyond those included in the 2022 final rule

(Collection began January 2022)

• Number of workers to be served (Collection began January 2022)

• Employer sector for all subawards to third-party employers (i.e., employers other than the

State, local, or Tribal government) (Collection began January 2022)

• For groups of workers (e.g., an operating unit, a classification of worker, etc.) or, to the

extent applicable, individual workers, other than those where the eligible worker receiving

premium pay is earning (with the premium pay included) below 150 percent of their

residing state or county’s average annual wage for all occupations, as defined by the

Bureau of Labor Statistics Occupational Employment and Wage Statistics, whichever is

higher, on an annual basis; OR the eligible worker receiving premium pay is not exempt

from the Fair Labor Standards Act overtime provisions:

 A brief written narrative justification of how the premium pay or grant is responsive

to workers performing essential work during the public health emergency. This

could include a description of the essential workers’ duties, health or financial risks

faced due to COVID-19, and why the recipient government determined that the

premium pay was responsive to workers performing essential work during the

pandemic. This description should not include personally identifiable information;

when addressing individual workers, recipients should be careful not to include

this information. Recipients may consider describing the workers’ occupations and

duties in a general manner as necessary to protect privacy (Collection began

January 2022)

• Number of workers to be served with premium pay in K-12 schools (Collection began April

2022)

11. Revenue replacement (EC 6.1) – Collection began in August 2021:

As outlined in the 2022 final rule, recipients have the option to make a one-time decision to

calculate revenue loss according to the formula outlined in the 2022 final rule or elect a

“Standard Allowance” of up to $10 million, not to exceed the award allocation, to spend on

government services throughout the period of performance. The option to make this one-time

decision was provided during the April 30, 2022 reporting deadline. Recipients may update

their revenue loss determination, as appropriate, through the April 2025 reporting period.

Upon update, any prior revenue loss election will be superseded. Recipients must use a

consistent methodology across the period of performance (i.e., choose either the standard

allowance or the full formula) and may not elect one approach for certain reporting years and

the other approach for different reporting years.

For recipients electing the “Standard Allowance,” Treasury will presume that up to $10

million, not to exceed the award allocation, in revenue has been lost due to the public health

For more information on NCES identification numbers see https://nces.ed.gov/ccd/districtsearch/ (districts)

and https://nces.ed.gov/ccd/schoolsearch/ (schools).

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emergency. Recipients are permitted to use that amount to fund “government services.”

Please note that electing the standard allowance does not change a recipient’s total

allocation. Recipients that elect to use this standard allowance will make this election instead

of calculating lost revenue using the formula.

For recipients calculating revenue loss according to the formula, the 2022 final rule permits

recipients to choose whether to use calendar or fiscal year calculation dates. Recipients

must use the same calculation time frame (calendar or fiscal year) throughout the award

period.

Recipients calculating lost revenue using the formula should report the following:

• Choice of fiscal or calendar year revenue loss (choice must remain consistent throughout

award period)

• General revenue collected over the past 12 months as of the most recent calculation

date, as outlined in the 2022 final rule.

• Calculated revenue loss due to the COVID-19 public health emergency; and

• An explanation of how the revenue replacement funds were allocated to government

services (note: additional instructions and/or template provided in the user guide posted

at www.treasury.gov/SLFRPReporting

For information on treatment of future tax changes, please see the

Statement Regarding

Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final

Rule and Final Rule.

12. Emergency Relief from Natural Disasters (EC 8) – Collection began October 2023:

For EC 8.1-8.11

• Identify the natural disaster declaration or designation

o Emergency Declaration or Major Declaration pursuant to the Robert T. Stafford

Disaster Relief and Emergency Assistance Act

 If responding to a natural disaster that is the subject of an emergency declaration

pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act:

• Provide the declaration identification number;

• Have SLFRF funds provided financial assistance to a person, business

concern, or other entity with respect to disaster losses? If providing

financial assistance to a person, business concern, or other entity with

respect to disaster losses, recipients are responsible for ensuring

compliance with the duplication of benefits requirements described in the

interim final rule at 31 CFR 35.6(g)(3). Disaster losses are losses suffered

as a result of a major disaster or emergency declared under the Stafford

Act.

o Emergency declaration by the Governor of a state pursuant to respective state law

without a Stafford Act Declaration

o Emergency declaration by a Tribal government without a Stafford Act Declaration

Designation of an event of a natural disaster by the chief executive or

equivalent of recipient government with the event meeting the

definition of natural disaster that does not also have a Stafford Act

Declaration

For EC 8.6, 8.7, 8.12, 8.13

• Does this project include a capital expenditure?

• Total expected cost of capital expenditures funded with SLFRF in a project,

including pre-development costs, if applicable

• For projects with total expected capital expenditures of over $10 million, provide

labor reporting as outlined for infrastructure projects on pages 37 and 38

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• For EC 8.12 (not EC 8.6, 8.7, 8.13): For recipients (except for Tribal governments)

using SLFRF for mitigation activities with SLFRF-funded capital expenditures over

$1 million, provide a written justification. Recipients that incorporate mitigation

activities into repairing public infrastructure or home repairs should report their

projects in EC 8.12.

13. Surface Transportation (EC 9) – Collection began October 2023 (Additional fields may be

phased in through future reporting periods):

• EC 9.1-9.3: Supplement, Not Supplant Attestation: The SLFRF funds used for this

project are supplementing not supplanting other federal, state, territorial, Tribal, and

local government funds (as applicable) that are otherwise available for these projects.

• EC 9.1: Surface Transportation Projects Receiving Funding from Department of

Transportation (DOT)

o Select the relevant program under which your DOT-funded project falls (check

one box):

 INFRA Grants

 National Highway Performance Program (NHPP)

 Bridge Investment Program (BIP)

 Surface Transportation Block Grant Program (STBG)

 Highway Safety Improvement Program (HSIP)

 Congestion Mitigation and Air Quality Improvement Program (CMAQ)

 Charging and Fueling Infrastructure Discretionary Grant Program (CFI

Program)

 Territorial and Puerto Rico Highway Program

 National Highway Freight Program (NHFP)

 Rural Surface Transportation Grant Program

 Carbon Reduction Program (CRP)

 Promoting Resilient Operations for Transformative, Efficient, and Cost-

Saving Transportation (PROTECT)

 Tribal Transportation Program (TTP)

 Federal Lands Transportation Program (FLTP)

 Federal Lands Access Program (FLAP)

 Rebuilding American Infrastructure with Sustainability and Equity

(RAISE) Grant Program

 Transportation Infrastructure Finance and Innovation Act (TIFIA)

 Urbanized Formula Grants

 Fixed Guideway Capital Investment Grants

 Formula Grants for Rural Areas

 State of Good Repair Grants

 Grants for Buses and Bus Facilities

 National culvert removal, replacement, and restoration grant program

(Culvert AOP Program)

 Bridge Replacement, Rehabilitation, Preservation, Protection, and

Construction Program (Bridge Formula Program or BFP)

 Metropolitan transportation planning

 Projects that further the completion of a designated route of the

Appalachian Development Highway System (ADHS)

o FAIN number(s) for associated DOT project

o Was DOT consulted prior to using SLFRF funds for this project? Yes/No.

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o For States using funds for projects eligible under title 23 of the U.S. Code or

otherwise subject to the requirements of title 23 of the U.S. Code, select

whether the project will:

 Demonstrate progress in achieving a state of good repair as required by

the State's asset management plan under 23 U.S.C. 119(e); and

(Yes/No)

 Support the achievement of 1 or more performance targets of the State

established under 23 U.S.C. 150. (Yes/No)

 This project is not a project eligible under title 23 of the U.S. Code or

otherwise subject to the requirements of title 23 of the U.S. Code.

o Limitation on Operating Expenses Attestation (only for Urbanized Formula

Grants, Fixed Guideway Capital Investment Grants, Formula Grants for Rural

Areas, State of Good Repair Grants, or Grants for Buses and Bus Facilities):

The SLFRF funds associated with this project are not being used for operating

expenses.

• EC 9.2: Surface Transportation Projects Not Receiving Funding from DOT

(Streamlined Framework)

o Select the eligible project type from the 2023 RAISE Grant NOFO for which the

recipient is using SLFRF funds.

 Highway, bridge, or other road projects eligible under title 23 of the U.S.

Code

 Public transportation projects eligible under chapter 53 of title 49, U.S.C.

 Passenger and freight rail transportation projects

 Port infrastructure investments (including inland port infrastructure and land

ports of entry)

 The surface transportation components of an airport project eligible for

assistance under part B of subtitle VII of title 49, U.S.C.

 Intermodal projects

 Projects to replace or rehabilitate a culvert or prevent stormwater runoff for

the purpose of improving habitat for aquatic species while advancing the

goals of the RAISE program

 Projects investing in surface transportation facilities that are located on

Tribal land and for which title or maintenance responsibility is vested in the

Federal Government

 Public road and non-motorized projects that are not otherwise eligible under

title 23, United States Code

 Transit-oriented development projects

 Mobility on-demand projects that expand access and reduce transportation

cost burden

 Planning projects

o For States using funds for projects eligible under title 23 of the U.S. Code or

otherwise subject to the requirements of title 23 of the U.S. Code, select

whether the project will:

 Demonstrate progress in achieving a state of good repair as required by

the State's asset management plan under 23 U.S.C. 119(e); and

(Yes/No)

 Support the achievement of 1 or more performance targets of the State

established under 23 U.S.C. 150. (Yes/No)

 This project is not a project eligible under title 23 of the U.S. Code or

otherwise subject to the requirements of title 23 of the U.S. Code.

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o Environmental Impact Attestation: The entire project scope is limited to the set

of actions or activities identified by DOT as meeting the criteria for categorical

exclusion as listed under 23 CFR 771.116(c)(1)-(22), 771.117(c)(1)-(30), and

771.118(c)(1)-(16). These actions do not involve unusual circumstances, as

described in 23 CFR 771.116(b), 771.117(b), and 771.118(b).

o Requirements Attestation: The project satisfies the requirements of titles 23, 40,

and 49 of the U.S. Code that apply to this project and the associated DOT

implementing regulations.

o Limitation on Operating Expenses Attestation (only for Urbanized Formula

Grants, Fixed Guideway Capital Investment Grants, Formula Grants for Rural

Areas, State of Good Repair Grants, or Grants for Buses and Bus Facilities):

The SLFRF funds associated with this project are not being used for operating

expenses.

• For EC 9.3: Non-federal share requirements for a Surface Transportation project or

repaying a TIFIA loan

o Select the DOT program for which you are using SLFRF funds to satisfy non-

federal share requirements or to repay a TIFIA loan

 INFRA Grants

 Fixed Guideway Capital Investment Grants

 Mega Grants

 Projects eligible for credit assistance under the TIFIA program

 Repayment of TIFIA loan

o FAIN number(s) for associated DOT projects

14. Title I (EC 10) – Collection began October 2023 (see supplemental guidance related to

environmental review requirements):

• Environmental Review Type: Indicate the type of environmental review required by the

project:

o Exempt Activity (per 24 CFR 58.34(a))

o Categorically Excluded and not subject to 24 CFR 58.5 (per 24 CFR 58.35(b))

with no extraordinary circumstances (per 24 CFR 58.35(c))

o Other - Upload the Treasury Approved Environmental Certification, Treasury

Approved Public Notice, Treasury Approved Proof of Posting Public Notice and

Treasury Approved Authority to Use Grant Funds Notice. (See supplemental

guidance related to environmental review requirements).

• Supplement, Not Supplant Attestation: The SLFRF funds used for this project are

supplementing not supplanting other federal, state, territorial, Tribal, and local

government funds (as applicable) otherwise available for such uses.

• Requirements Attestation: The project satisfies the requirements of title I of the

Housing and Community Development Act of 1974 that apply to this project and the

associated HUD implementing regulations.

• Does this Title I project relate to broadband infrastructure? (Yes/No).

• For non-Tribal government recipients:

o Designate which of the three National Objectives the project aligns to:

 Benefit low- and moderate-income persons

 Prevent of eliminate slums or blight

 Meet other particularly urgent community development needs

o Labor Standards Attestation: All labor standards requirements applicable under

this eligible use category have been satisfied by the recipient.

o For Tribal government recipients: Are you satisfying the definition of “low and

moderate income” for the primary objective requirement based on project

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beneficiaries receiving or being eligible to receive needs-based services

provided by the Tribe, instead of relying on Census data? Needs-based

services are defined as services administered by the Tribal government on the

basis of an individual’s income.

o If yes: Attestation: The project beneficiaries are receiving or are eligible to

receive needs-based services provided by the Tribal government.

15. Costs Associated with Satisfying Certain Legal and Administrative Requirements of the

SLFRF Program After December 31, 2024 (EC 7.3) – Collection began in July 2024:

Recipients may use this EC to report estimated expenses of certain legal and

administrative costs to be expended after the obligation deadline. These eligible expenses

are discussed in FAQ 17.10

, and include:

• Reporting and compliance requirements, including subrecipient monitoring

• Single Audit costs

• Record retention and internal control requirements

• Property standards

• Environmental requirements, including applicable requirements of the National

Environmental Policy Act, section 106 of the National Historic Preservation Act, the

Archaeological Resources Protection Act of 1979, and the Native American Graves

Protection and Repatriation Act

• Civil rights and nondiscrimination requirements

Please note this is not an exhaustive list of the legal and administrative requirements that

are considered obligated. In addition, please note that eligible expenses under this EC do

not include all legal and administrative expenses, but only those relating to a requirement

under federal law or regulation or a provision of the SLFRF award terms and conditions to

which the recipient becomes subject as a result of receiving or expending SLFRF funds.

Recipients should only report such expenses if they are not obligated and reported through

another mechanism, such as a contract, subaward, interagency agreement, or personnel

cost estimate, as discussed above in section c.

Recipients may report eligible expenses under this EC in the aggregate through a single

project. Recipient should report:

• Estimated expenses to cover relevant legal and administrative requirements of SLFRF

in 2025, 2026, and award closeout

• Current period expenditures pursuant to the estimate

• Description of eligible administrative and legal expenses

• Explanation of how the figure for the estimated funds to cover eligible administrative and

legal expenses was determined

Alongside these reporting requirements, a recipient must document and keep on file a

reasonable justification for how the estimate was determined. This reasonable justification

is distinct from the explanation of how the estimate was determined, which will be submitted

in the Project & Expenditure Report. The explanation submitted in the Project & Expenditure

Report should provide a summary of how the recipient calculated the estimate. The

reasonable justification kept on file may include a discussion of the recipient’s expectations

that eligible personnel costs will continue to be paid in future periods and may include payroll

documents, project plans, or other applicable documents.

In determining an appropriate estimate for eligible expenses, a recipient may wish to consult

the following sections of the Uniform Guidance:

• 2 CFR 200.403

– Factors affecting allowability of costs

• 2 CFR 200.404 – Reasonable costs

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• 2 CFR 200.430(i) – Standards for Documentation of Personnel Expenses

l. Required Programmatic Data for Water, Sewer, and Broadband Infrastructure Projects (EC 5): For

all projects listed under the Water, Sewer, and Broadband Expenditure Categories (see Appendix

1), more detailed project-level information is required. Each project will be required to report

expenditure data as described above, but will also report the following information:

1. All water, sewer, and broadband infrastructure projects (EC 5) – Collection began in January

2022:

• Projected/actual construction start date (month/year)

• Projected/actual initiation of operations date (month/year)

• Location

• For projects over $10 million (based on expected total cost):

a. A recipient may provide a certification that, for the relevant project, all laborers and

mechanics employed by contractors and subcontractors in the performance of such

project are paid wages at rates not less than those prevailing, as determined by the

U.S. Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40,

United States Code (commonly known as the “Davis-Bacon Act”), for the

corresponding classes of laborers and mechanics employed on projects of a character

similar to the contract work in the civil subdivision of the State (or the District of

Columbia) in which the work is to be performed, or by the appropriate State entity

pursuant to a corollary State prevailing-wage-in-construction law (commonly known as

“baby Davis-Bacon Acts”). If such certification is not provided, a recipient must provide

a project employment and local impact report detailing:

 The number of employees of contractors and sub-contractors working on the

project;

 The number of employees on the project hired directly and hired through a third

party;

 The wages and benefits of workers on the project by classification; and

 Whether those wages are at rates less than those prevailing.

Recipients must maintain sufficient records to substantiate this information upon

request.

b. A recipient may provide a certification that a project includes a project labor agreement,

meaning a pre-hire collective bargaining agreement consistent with section 8(f) of the

National Labor Relations Act (29 U.S.C. 158(f)). If the recipient does not provide such

certification, the recipient must provide a project workforce continuity plan, detailing:

 How the recipient will ensure the project has ready access to a sufficient supply of

appropriately skilled and unskilled labor to ensure high-quality construction

throughout the life of the project, including a description of any required

professional certifications and/or in-house training;

 How the recipient will minimize risks of labor disputes and disruptions that would

jeopardize timeliness and cost-effectiveness of the project;

 How the recipient will provide a safe and healthy workplace that avoids delays and

costs associated with workplace illnesses, injuries, and fatalities, including

descriptions of safety training, certification, and/or licensure requirements for all

relevant workers (e.g., OSHA 10, OSHA 30);

 Whether workers on the project will receive wages and benefits that will secure an

appropriately skilled workforce in the context of the local or regional labor market;

and

 Whether the project has completed a project labor agreement.

As determined by the U.S. Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40,

United States Code (commonly known as the “Davis-Bacon Act”), for the corresponding classes of laborers

and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the

State (or the District of Columbia) in which the work is to be performed.

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c. Whether the project prioritizes local hires.

d. Whether the project has a Community Benefit Agreement, with a description of any

such agreement.

2. W

ater and sewer projects (EC 5.1-5.18) Required once the project starts:

• National Pollutant Discharge Elimination System (NPDES) Permit Number (if applicable;

for projects aligned with the Clean Water State Revolving Fund) (Collection began in

January 2022)

• Public Water System (PWS) ID number (if applicable; for projects aligned with the Drinking

Water State Revolving Fund) (Collection began January 2022)

• Median Household Income of service area (Collection began in April 2022)

• Lowest Quintile Income of the service area (Collection began in April 2022)

3. B

roadband projects (EC 5.19-5.21) Collection includes new fields that began in July 2022.

Additional fields will be phased in through future reporting periods, as noted below.

verall Project Information

• Confirm that the project is designed to, upon completion, reliably meet or exceed

symmetrical 100 Mbps download and upload speeds.

o If the project is not designed to reliably meet or exceed symmetrical 100 Mbps

download and upload speeds, explain why not, and

o Confirm that the project is designed to, upon completion, meet or exceed 100 Mbps

download speed and between at least 20 Mbps and 100 Mbps upload speed, and be

scalable to a minimum of 100 Mbps download speed and 100 Mbps upload speed.

• Confirm that the service provider for the project has, or will upon completion of the project,

either participated in the Federal Communications Commission (FCC)’s Affordable

Connectivity Program (ACP) or otherwise provided access to a broad-based affordability

program that provides benefits to households commensurate with those provided under

the ACP to low-income consumers in the proposed service area of the broadband

infrastructure (applicable only to projects that provide service to households).

Detailed Project Information

• Project technology type(s) (Planned/Actual)

o Fiber

o Coaxial Cable

o Terrestrial Fixed Wireless

o Other (specify)

• Total miles of fiber deployed (Planned/Actual)

• Total number of funded locations served (Planned/Actual)

o Total number of funded locations served, broken out by speeds:

 Pre-SLFRF Investment:

• Number receiving 25/3 Mbps or below

• Number receiving between 25/3 Mbps and 100/20 Mbps

 Post-SLFRF Investment (Planned/Actual):

• Number receiving minimum 100/100 Mbps

• Number receiving minimum 100/20 Mbps and scalable to minimum

100/100 Mbps

o Total number of funded locations served, broken out by type (Planned/Actual):

 Residential

• Total Housing Units

 Business

 Community anchor institution

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

• Speed tiers offered, corresponding non-promotional prices, including associated fees, and

data allowance for each speed tier of broadband service (collection to be phased in a

future reporting period)

Location-by-Location Project Information

For each location served by a Project, the recipient must collect from the subrecipient or

contractor and submit the following information to Treasury using a predetermined file format

that will be provided by Treasury (collection of certain fields will begin in October 2022, as

specified below):

• Latitude/longitude at the structure where service will be installed (required starting October

2022)Technology used to offer service at the location (required starting October 2022)

• Location type (required starting October 2022)

o Residential

 If Residential, Number of Housing Units

o Business

o Community anchor institution

• Speed tier at the location pre-SLFRF investment (collection to be phased in)

o 25/3 Mbps or below

o Between 25/3 Mbps and 100/20 Mbps

• Speed and latency at the location post-SLFRF investment (collection to be phased in)

o Maximum download speed offered

o Maximum download speed delivered

o Maximum upload speed offered

o Maximum upload speed delivered

o Latency

• Standardized FCC Identifiers

o Fabric ID # (Broadband Serviceable Fabric Locations)

o FCC Issued Provider ID #

m. Additional Required Programmatic Data for States, U.S. territories, and metropolitan cities and

counties with a population that exceeds 250,000 residents only: As noted in the Recovery Plan

Performance Report section of this guidance, states, U.S. territories, and metropolitan cities and

counties with a population over 250,000 are required to provide additional data in the Project and

Expenditure report for projects in the following expenditure categories. Treasury recognizes that

recipients are reporting a broad set of projects under the following expenditure categories. It may

be the case that a recipient is reporting a project under an expenditure category that is an eligible

use of SLFRF funds for that expenditure category, in accordance with the 2022 final rule, but is

not designed to meet the associated performance indicators. In these instances, recipients may

report a “0” in these data fields. As described in the Performance Report section of the Recovery

Plan Performance Report section, recipients have discretion on the full suite of performance

indicators for inclusion in their Recovery Plans, including the list of required data for each

expenditure category, where relevant.

1. Use of Evidence (for relevant ECs noted in Appendix 1)—Collection began April 2022

• The dollar amount of the total project spending that is allocated towards evidence-based

interventions

• Whether a program evaluation of the project is being conducted

2. Household A

ssistance (EC 2.2), Long-Term Housing Security (EC 2.15-2.16) and Housing

Support (EC 2.17-2.18):

• Number of households receiving eviction prevention services (including legal

representation)

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

• Number of affordable housing units preserved or developed

3. Assistance to Unemployed or Underemployed Workers (EC 2.10) and Community Violence

Interventions (EC 1.11):

• Number of workers enrolled in sectoral job training programs

• Number of workers completing sectoral job training programs

• Number of people participating in summer youth employment programs

4. Addressing Educational Disparities (EC 2.24-2.26) and Addressing Impacts of Lost

Instructional Time (EC 2.27):

• Number of students participating in evidence-based tutoring programs

5. Healthy Childhood Environments (EC 2.11-2.14):

• Number of children served by childcare and early learning services (pre-school/pre-K/ages

3-5)

• Number of families served by home visiting

n. NEU Documentation (NEUs only): Each NEU is also required to provide the following information

once its accounts are established in Treasury’s Reporting Portal and prior to the due date for

their first Project and Expenditure Report (due April 30, 2022):

• Copy of the signed award terms and conditions agreement (which was signed and submitted

to the State as part of the request for funding)

• Copy of the signed assurances of compliance with Title VI of the Civil Rights Act of 1964

(which was signed and submitted to the State as part of the request for funding)

• Copy of actual budget documents validating the top-line budget total provided to the State as

part of the request for funding

NEU accounts are established in Treasury’s Portal based on information provided by the States or

territories, as further described in Section Part 2 D below.

C. Recovery Plan Performance Report

States, territories, and metropolitan cities and counties with a population that exceeds 250,000

residents (i.e., Tier 1 recipients) will also be required to publish and submit to Treasury a Recovery

Plan performance report (“Recovery Plan”). Each Recovery Plan must be posted on an easily

discoverable webpage on the public-facing website of the recipient by the same date the recipient

submits the report to Treasury. Treasury recommends that Recovery Plans be accessible within three

clicks or fewer from the homepage of the recipient’s website. Within Treasury’s reporting portal,

recipients must upload a link to the publicly available Recovery Plan and provide required data.

The Recovery Plan provides the public and Treasury both retrospective and prospective information

on the projects recipients are undertaking or planning to undertake with program funding and how

they are planning to ensure program outcomes are achieved in an effective, efficient, and equitable

manner. While this guidance outlines some minimum requirements for the Recovery Plan, each

recipient is encouraged to add information to the plan that they feel is appropriate to provide

information to their constituents on efforts they are taking to respond to the pandemic and promote

economic recovery. Each jurisdiction may determine the general form and content of the Recovery

Plan, as long as it includes the minimum information required by Treasury. Treasury provided a

template (located at www.treasury.gov/SLFRP

) but recipients may modify this template as

appropriate for their jurisdiction, provided the modified template meets Treasury’s requirements,

For more information on evidence-based tutoring programs, refer to the U.S. Department of Education’s

2021 ED COVID-19 Handbook (Volume 2)

, which summarizes research on evidence-based tutoring programs

(see the bottom of page 20.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

outlined below. Through the Recovery Plan, recipients may link to public documents, including, but

not limited to, legislation, dashboards, survey results, community engagement reports, and equity

frameworks to support the Recovery Plan narrative. The Recovery Plan should include key

performance indicators identified by the recipient and some mandatory indicators identified by

Treasury, as noted below.

The initial Recovery Plan covered the period from the date of award to July 31, 2021 and was required

to be submitted to Treasury by August 31, 2021, or 60 days after receiving funding. Thereafter, the

Recovery Plan will cover a 12-month period and recipients are required to submit the report to

Treasury after the end of the 12-month period by July 31. The Recovery Plan should include both

retrospective information covering the time period of the Recovery Plan along with prospective

information on future work to be undertaken with SLFRF funds or on the planning that has been

undertaken during the covered period. Table 5 summarizes the report timelines:

Table 5 Recovery Plan Timeline

Annual

Report

Period Covered

Due Date

Award Date – July 31, 2021

August 31, 2021 or 60 days

after receiving funding

July 1, 2021 – June 30, 2022

July 31, 2022

July 1, 2022 – June 30, 2023

July 31, 2023

July 1, 2023 – June 30, 2024

July 31, 2024

July 1, 2024 – June 30, 2025

July 31, 2025

July 1, 2025 – June 30, 2026

July 31, 2026

July 1, 2026 – December 31, 2026

April 30, 2027

Recovery Plans submitted as part of reporting are used by Treasury, third party organizations, the

public, and other stakeholders to obtain a comprehensive understanding of SLFRF’s largest

recipients’ planned and actual usage of SLFRF funding, including the jurisdiction’s policy goals, its

strategy for achieving them, and specific projects or initiatives underway. Alignment of data reported

in Project and Expenditure reports and Recovery Plans is expected by both Treasury and SLFRF’s

many stakeholders. Finally, Recovery Plans will be posted publicly by Treasury to provide

transparency about how program funds are being used by recipient governments.

The Recovery Plan must include, at a minimum, the following information:

1. Executive Summary

In this section, recipients should provide a high-level overview of the jurisdiction’s intended and actual

uses of funding including, but not limited to: the jurisdiction’s strategy, goals, and plan for using Fiscal

Recovery Funds to respond to the pandemic and promote economic recovery, key outcome goals,

progress to date on those outcomes, and any noteworthy challenges or opportunities identified during

the reporting period.

2. Uses of Funds

In this section, recipients should describe in further detail the strategy and goals of their jurisdiction’s

SLFRF program, such as how their jurisdiction’s approach would help support a strong and equitable

recovery from the COVID-19 pandemic and economic downturn. Recipients should describe how their

intended and actual uses of funds will achieve their goals. Given the broad eligible uses of funds

established by the 2022 final rule and the 2023 IFR and the specific needs of different jurisdictions,

recipients should also explain how the funds would support the communities, populations, or

individuals in their jurisdiction. Recipients should describe how their use of funds supports their overall

strategy and goals in the following areas:

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

a. Public Health (EC 1): As relevant, describe how funds are being used to respond to COVID-19,

the broader health impacts of COVID-19, and the COVID-19 public health emergency, including

community violence interventions and behavioral health.

b. N

egative Economic Impacts (EC 2): As relevant, describe how funds are being used to respond

to negative economic impacts of the COVID-19 public health emergency, including services to

households (such as affordable housing, job training, and childcare), small businesses, non-

profits, and impacted industries.

c. P

ublic Health-Negative Economic Impact: Public Sector Capacity (EC 3): As relevant, describe

how funds are being used to support public sector workforce and capacity, including public sector

payroll, rehiring of public sector workers, and building of public sector capacity.

d. P

remium Pay (EC 4): As relevant, describe the approach, goals, and sectors or occupations

served in any premium pay program. Describe how the approach prioritizes low-income workers

and/or any particular group of eligible workers.

e. W

ater, sewer, and broadband infrastructure (EC 5): As relevant, describe the approach, goals,

and types of projects being pursued. Where relevant, recipients should note how projects

contribute to addressing climate change and/or how projects benefit disadvantaged communities

in line with the Justice40 Initiative.

f. Revenue Replacement (EC 6): Describe the loss in revenue, including if electing the standard

allowance, due to the COVID-19 public health emergency, and how funds have been used to

provide government services, including any funds used under revenue loss for non-federal cost-

share or matching requirements of other federal programs.

g. E

mergency Relief from Natural Disasters (EC 8): As relevant, describe how funds are being used

to provide emergency relief from natural disasters that have occurred or are expected to occur

imminently, or are threatened to occur in the future.

h. S

urface Transportation (EC 9): As relevant, describe how funds are being used to support projects

eligible under the 26 transportation programs specified in the Consolidated Appropriations Act,

2023.

i. T

itle I (EC 10): As relevant, describe how funds are being used for activities that are eligible under

section 105(a) of the Housing and Community Development Act of 1974 (Title I projects), which

are the activities eligible under the Community Development Block Grant (CDBG) and Indian

Community Development Block Grant (ICDBG) programs.

If appropriate, recipients may also include information on their jurisdiction’s use (or planned use) of

other federal recovery funds, including other programs under the American Rescue Plan such as

Emergency Rental Assistance, the Homeowner Assistance Fund, the Capital Projects Fund, the State

Small Business Credit Initiative, and so forth, to provide broader context on the overall approach for

pandemic recovery. Jurisdictions may also address use of SLFRF funds in coordination with, or in

preparation for, funding available through the Infrastructure Investment and Jobs Act.

3. Promoting equitable outcomes

Treasury encourages uses of funds that advance strong, equitable growth, including economic and

racial equity. For the purposes of the SLFRF, equity is described in the

Executive Order 13985 On

Advancing Racial Equity and Support for Underserved Communities Through the Federal

Government, as issued on January 20, 2021. Recipients also are encouraged to review the definition

and discussion of equity in Executive Order 14091, Further Advancing Racial Equity and Support for

Underserved Communities Through the Federal Government, as issued on February 16, 2023.

See Executive Order 14008, on Tackling the Climate Crisis at Home and Abroad; OMB, CEQ, & CPO, M-

21-28,Interim Implementation Guidance for the Justice40 Initiative (July 20, 2021)

https://www.whitehouse.gov/wp-content/uploads/2021/07/M-21-28.pdf; OMB, CEQ, & CPO, M-23-09,

Addendum to the Interim Implementation Guidance for the Justice40 Initiative, M-21-28, on using the Climate

and Economic Justice Screening Tool (CEJST) (Jan. 27, 2023),

https://www.whitehouse.gov/wp-

content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

In this section, recipients should describe, as applicable, their efforts to promote equitable outcomes,

including economic and racial equity, and their efforts to design, implement, and measure their SLFRF

program and projects with equity in mind.

In describing their efforts to design their SLFRF program and projects with equity in mind, recipients

may consider the following:

a. Goals: Are there particular historically underserved, marginalized, or adversely affected groups

that recipients intend to serve within their jurisdiction?

b. A

wareness: How equitable and practical is the ability for residents or businesses to become aware

of the services funded by SLFRF?

c. A

ccess and Distribution: Are there differences in levels of access to benefits and services across

groups? Are there administrative requirements that result in disparities in ability to complete

applications or meet eligibility criteria?

d. O

utcomes: How are intended outcomes focused on closing gaps and/or reaching universal levels

of service? How is the considering disaggregating outcomes by race, ethnicity, and other equity

dimensions where relevant for the policy objective?

In describing their efforts to implement their SLFRF program and projects with equity in mind,

recipients may consider the following:

a. Goals and Targets: Please describe how planned or current uses of funds prioritize economic and

racial equity as a goal, name specific targets intended to produce meaningful equity results at

scale, and include initiatives to achieve those targets.

b. P

roject Implementation: In addition, please explain how the jurisdiction’s overall equity strategy

translates into focus areas for SLFRF projects and the specific services or programs offered by

the jurisdiction in the following Expenditure Category, as indicated in the 2022 final rule.

Negative Economic Impacts (EC 2): assistance to households, small businesses, and non-

profits to address impacts of the pandemic, which have been most severe among low-income

populations. This includes assistance with food, housing, and other needs; employment

programs for people with barriers to employment who faced negative economic impacts from

the pandemic (such as residents of low-income neighborhoods, minorities, disconnected

youth, the unemployed, formerly incarcerated people, veterans, and people with disabilities);

services to provide long-term housing security and housing supports, address educational

disparities, or provide child care and early learning services; and other strategies that provide

impacted and disproportionately impacted communities with services to address the negative

economic impacts of the pandemic

The first annual Recovery Plan, due in 2021, was required to describe initial efforts and intended

outcomes to promote equity, as applicable. Beginning in 2022, each annual Recovery Plan must

provide an update, using qualitative and quantitative data, on how the recipients’ approach achieved

or promoted equitable outcomes or progressed against equity goals during the performance period,

as applicable. Each jurisdiction should describe any constraints or challenges that impacted project

success in terms of increasing equity. In particular, this section should describe the geographic and

demographic distribution of funding, including whether it is targeted toward traditionally marginalized

communities (recipients may reference the demographic data information in their Project and

Expenditure Reports as relevant).

4. Community Engagement

In this section, recipients should describe how their jurisdiction’s planned or current use of funds

incorporates community engagement strategies including written feedback through surveys, project

proposals, and related documents; oral feedback through community meetings, issue-specific

listening sessions, stakeholder interviews, focus groups, and additional public engagement; as well

as other forms of input, such as steering committees, taskforces, and digital campaigns that capture

diverse feedback from the community. Recipients may describe completed or planned community

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

engagement strategies specifically focused on their SLFRF program and projects or community

engagement strategies that included SLFRF among other government programs. Recipients should

also describe how community engagement strategies support their equity goals, including

engagement with communities that have historically faced significant barriers to services, such as

people of color, people with low incomes, limited English proficient populations, and other traditionally

underserved groups.

5. Labor Practices

In this section, recipients should describe workforce practices on any infrastructure projects or capital

expenditures being pursued. How are projects using strong labor standards to promote effective and

efficient delivery of high-quality infrastructure projects while also supporting the economic recovery

through strong employment opportunities for workers? For example, report whether any of the

following practices are being utilized: project labor agreements, community benefits agreements,

prevailing wage requirements, and local hiring.

6. Use of Evidence

In this section of the Recovery Plan, recipients should describe whether and how evidence-based

interventions and/or program evaluation are incorporated into their SLFRF program. Recipients may

include links to evidence standards, evidence dashboards, evaluation policies, and other public facing

tools that are used to track and communicate the use of evidence and evaluation for Fiscal Recovery

Funds. Recipients are encouraged to consider how a learning agenda, either narrowly focused on

SLFRF or broadly focused on the recipient’s broader policy agenda, could support their overarching

evaluation efforts in order to create an evidence-building strategy for their jurisdiction.

In the Project Inventory section of the Recovery Plan (see Section 8 below), recipients should identify

whether SLFRF funds are being used for evidence-based interventions

and/or if projects are being

evaluated through rigorous program evaluations that are designed to build evidence. In the Project

Inventory, recipients must briefly describe the goals of the project and the evidence base for the

interventions funded by the project. As part of the Project Inventory section, recipients must also

specifically identify the dollar amount of the total project spending that is allocated towards evidence-

based interventions for each project in the Expenditure Categories noted with an asterisk in Appendix

1. Please note that to increase consistency, the Project and Expenditure report now also includes

fields for recipients to identify the dollar amount of the total project spending that is allocated to

evidence-based interventions and to indicate if a program evaluation of the project is being conducted.

Recipients are encouraged to reference relevant evidence clearinghouses, among other sources, to

assess the level of evidence for their interventions and identify evidence-based models that could be

applied in their jurisdiction; such evidence clearinghouses include the U.S. Department of Education’s

What Works Clearinghouse, the U.S. Department of Labor’s CLEAR, and the

Childcare & Early

Education Research Connections and the Home Visiting Evidence of Effectiveness clearinghouses

from Administration for Children and Families, as well as other clearinghouses relevant to particular

projects conducted by the recipient.

Recipients are exempt from reporting on evidence-based interventions in cases where a program

evaluation is being conducted. In such cases where a recipient is conducting a program evaluation,

recipients must describe the evaluation design, including whether it is a randomized or quasi-

experimental design; the key research questions being evaluated; whether the study has sufficient

statistical power to disaggregate outcomes by demographics; and the timeframe for the completion

of the evaluation (including a link to the completed evaluation if relevant).

Once the evaluation has

been completed, recipients must post the evaluation publicly and link to the completed evaluation in

the Recovery Plan. Once an evaluation has been completed (or has sufficient interim findings to

For more information on learning agendas, please see OMB M-19-23

As noted in Appendix 2, evidence-based refers to interventions with strong or moderate levels of evidence.

For more information on the required standards for program evaluation, see OMB M-20-12.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

determine the efficacy of the intervention), recipients should determine whether the spending for the

evaluated interventions should be counted towards the dollar amount categorized as evidence-based

for the relevant project.

For all projects, recipients may be selected to participate in a national evaluation, which might, for

example, study their project along with similar projects in other jurisdictions that are focused on the

same set of outcomes. In such cases, recipients may be asked to share information and data that is

needed for the national evaluation.

Appendix 2 contains additional information on evidence-based interventions for the purposes of the

Recovery Plan.

7. Performance Report

In this section, recipients should describe how performance management is incorporated into their

SLFRF program, including how they are tracking their overarching jurisdictional goals for these funds

as well as measuring results for individual projects. The recipient has flexibility in terms of how this

information is presented in the Recovery Plan, and may report key performance indicators for each

project, or may group projects with substantially similar goals and the same outcome measures. In

some cases, the recipient may choose to include some indicators for each individual project as well

as crosscutting indicators. Recipients may include links to performance management dashboards,

performance management policies, and other public facing tools that are used to track and

communicate the performance of Fiscal Recovery Funds. In addition to outlining in this section their

high-level approach to performance management, recipients must also include key performance

indicators for each SLFRF project in the Project Inventory section (described below in #8).

Performance indicators should include both output and outcome measures. Output measures, such

as the number of students enrolled in an early learning program, provide valuable information about

the early implementation stages of a project. Outcome measures, such as the percent of students

reading on grade level, provide information about whether a project is achieving its overall goals.

Recipients are encouraged to use logic models

to identify their output and outcome measures.

While the initial Recovery Plan focused heavily on early output goals, recipients should include the

related outcome goal for each project and provide updated information on achieving these outcome

goals in subsequent annual reports. In cases where recipients are conducting a program evaluation

for a project (as described above), the outcome measures in the performance report should be aligned

with those being evaluated in the program. As described in the 2022 final rule, to support their

performance measurement and program improvement efforts, recipients are permitted to use funds

to make improvements to data or technology infrastructure and data analytics, as well as perform

program evaluations.

While recipients have discretion on the full suite of performance indicators to include, a number of

mandatory performance indicators and programmatic data must be included. These are necessary

to allow Treasury to conduct oversight as well as understand and aggregate program outcomes

across recipients. This section provides an overview of the mandatory performance indicators and

programmatic data. This information should be included in the Project Inventory, but this data will also

need to be entered directly into the Treasury reporting portal as part of the Project and Expenditure

report, as Treasury has added these fields (for Tier 1 recipients only) to the Project and Expenditure

report. Below is a list of required data for each Expenditure Category, where relevant.

a. Household Assistance (EC 2.2), Long-Term Housing Security (EC 2.15-2.16) and Housing

Support (EC 2.17-2.18):

• Number of households receiving eviction prevention services (including legal representation)

A logic model is a tool that depicts the intended links between program investments and outcomes,

specifically the relationships among the resources, activities, outputs, outcomes, and impact of a program.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

• Number of affordable housing units preserved or developed

b. Assistance to Unemployed or Underemployed Workers (EC 2.10) and Community Violence

Interventions (EC 1.11):

• Number of workers enrolled in sectoral job training programs

• Number of workers completing sectoral job training programs

• Number of people participating in summer youth employment programs

c. Addressing Educational Disparities (EC 2.24-2.26) and Addressing Impacts of Lost Instructional

Time (EC 2.27):

• Number of students participating in evidence-based tutoring programs

d. Healthy Childhood Environments (EC 2.11-2.14):

• Number of children served by childcare and early learning services (pre-school/pre-K/ages 3-

• Number of families served by home visiting

The initial report should have included the key indicators above. Each annual report thereafter should

include updated data for the performance period as well as prior period data, and a brief narrative

adding any additional context to help the reader interpret the results and understand any changes in

performance indicators over time. To the extent possible, Treasury also encourages recipients to

provide data disaggregated by race, ethnicity, gender, income, and other relevant factors.

8. Project Inventory

In this section, recipients should list the name and provide a brief description of each SLFRF funded

project. Projects are defined as a grouping of closely related activities that together are intended to

achieve a specific goal or are directed toward a common purpose. These activities can include new

or existing eligible government services or investments funded in whole or in part by SLFRF funding.

For each project, recipients should include the project name, funding amount, identification number

(the same identification number created by the recipient that matches the identification number used

in the quarterly Project and Expenditure Report), project Expenditure Category (see Appendix 1), and

a description of the project that includes an overview of the main activities of the project, approximate

timeline, primary delivery mechanisms and partners, and intended outcomes. Each jurisdiction should

also include a link to the website of the project if available. This information will provide context and

additional detail for the information reported quarterly in the Project and Expenditure Report.

For infrastructure projects, where relevant, recipients should describe how the project contributes to

addressing climate change and/or advances the Justice40 Initiative

, which sets a target of providing

40 percent of the overall benefits of certain federal investments, including climate and clean energy

investments to disadvantaged communities.

As noted above in section 6, the Project Inventory must also include information about the dollar

amount of the total project spending that is allocated towards evidence-based interventions (or

describe how projects are being evaluated as noted above). As described above in section 7, the

Project Inventory must also contain information about the performance indicators for each project,

including both those measures that recipients have defined for each project as well as the mandatory

performance indicators defined by Treasury.

For more information on evidence-based tutoring programs, refer to the U.S. Department of Education’s

2021 ED COVID-19 Handbook (Volume 2)

, which summarizes research on evidence-based tutoring programs

(see the bottom of page 20.).

See Executive Order 14008, On Tackling the Climate Crisis at Home and Abroad and the Interim

Implementation Guidance for the Justice40 Initiative, OMB M-21-28.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Recipients have flexibility in the presentation and format of their Project Inventory, provided it includes

the minimum required information. Recipients have the option of downloading a spreadsheet of the

information entered into their Project and Expenditure Report to assist them in creating the Project

Inventory in their Recovery Plan. However, recipients must ensure that their Project Inventory

contains the additional information required by this guidance, including but not limited to information

about performance measures and evidence/evaluation for each project. In all cases, recipients must

post publicly (and submit to Treasury) a single PDF file of their Recovery Plan, which includes the

Project Inventory.

D. Distributions to NEUs

Each state and territory is required to provide regular updates on their NEU distributions as well as

their distributions to units of general local government within counties that are not units of general

local government. The distribution template generally requests information on whether the local

government has (1) received funding; (2) declined funding and requested a transfer to the state

under Section 603(c)(4) of the Act; or (3) not taken action on its funding or declined funding.

For NEUs, states and territories should be prepared to report on their information, including the

following:

• NEU name

• NEU UEI number

• NEU Taxpayer Identification Number (TIN)

• NEU Recipient Number (a unique identification code for each NEU assigned by the State or

territory to the NEU as part of the request for funding)

• NEU contact information (e.g., address, point of contact name, point of contact email

address, and point of contact phone number)

• NEU authorized representative name and email address

• Initial allocation and, if applicable, subsequent allocation to the NEU (before application of

the 75 percent cap)

• Total NEU reference budget (as submitted by the NEU to the State or territory as part of the

request for funding)

• Amount of the initial and, if applicable, subsequent allocation above 75 percent of the NEU’s

reference budget which will be returned to Treasury

• Payment amount(s)

• Payment date(s)

States with “weak” minor civil divisions (i.e., Illinois, Indiana, Kansas, Missouri, Nebraska, North

Dakota, Ohio, and South Dakota) should also list any minor civil divisions that the state deemed

ineligible.

For each eligible NEU that declined funding and requested a transfer to the state under Section

603(c)(4) of the Social Security Act, the state or territory must also attach a form signed by the NEU,

as detailed in the

Guidance on Distributions of Funds to Non-Entitlement Units of Local

Government.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Appendix 1: Expenditure Categories

Treasury’s 2022 final rule provides greater flexibility and simplicity for recipients to fight the pandemic

and support families and businesses struggling with its impacts, maintain vital services amid revenue

shortfalls, and build a strong, resilient, and equitable recovery. As such, recipients began reporting

on a broader set of eligible uses and associated Expenditure Categories (“EC”), starting with the April

2022 Project and Expenditure Report than they did in their interim reports, initial Recovery Plans, and

January 2022 Project and Expenditure Report. The table below includes the ECs from the 2022 final

rule, as well as a reference to previous ECs aligned with the 2021 IFR and used for reporting before

this date.

Treasury’s 2023 IFR describes how recipients may use SLFRF funds to provide emergency relief

from natural disasters, build surface transportation infrastructure, and support community

development. This table was updated in September 2023 to reflect the new eligible uses described in

the 2023 IFR.

The ECs listed below must be used to categorize each project as noted in Part 2 above. The term

“Expenditure Category” refers to the detailed level (e.g., 1.1 COVID-19 Vaccination). When referred

to as a category (e.g., EC 1) it includes all ECs within that level.

*Denotes areas where recipients must identify the amount of the total funds that are allocated to

evidence-based interventions (see Use of Evidence section above for details)

^Denotes areas where recipients must report on whether projects are primarily serving

disproportionately impacted communities (see Project Demographic Distribution section above for

details)

Expenditure Category EC

1: Public Health

COVID-19 Mitigation & Prevention

COVID-19 Vaccination^

1.1

COVID-19 Testing^

1.2

COVID-19 Contact Tracing^

1.3

Prevention in Congregate Settings (Nursing Homes, Prisons/Jails,

Dense Work Sites, Schools, Child care facilities, etc.)*^

1.4 1.4

Personal Protective Equipment^

1.5

Medical Expenses (including Alternative Care Facilities)^

1.6

Other COVID-19 Public Health Expenses (including Communications,

Enforcement, Isolation/Quarantine)^

1.7 1.8

COVID-19 Assistance to Small Businesses^

1.8

COVID 19 Assistance to Non-Profits^

1.9

COVID-19 Aid to Impacted Industries^

1.10

Community Violence Interventions

Community Violence Interventions*^

1.11

3.16

Behavioral Health

Mental Health Services*^

1.12

1.10

Substance Use Services*^

1.13

1.11

Other

Other Public Health Services^

1.14

1.12

Under the 2022 final rule to be used starting with April 2022 reports or the 2023 IFR to be used starting with the October

2023 reports

Under the 2021 IFR to be used in Interim Report and January 2022 Project and Expenditure Report

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Expenditure Category EC

Capital Investments or Physical Plant Changes to Public Facilities that

respond to the COVID-19 public health emergency

- 1.7

2: Negative Economic Impacts

Assistance to Households

Household Assistance: Food Programs*^

2.1

Household Assistance: Rent, Mortgage, and Utility Aid*^

2.2

Household Assistance: Cash Transfers*^

2.3

Household Assistance: Internet Access Programs*^

2.4

Household Assistance: Paid Sick and Medical Leave^

2.5

Household Assistance: Health Insurance*^

2.6

Household Assistance: Services for Un/Unbanked*^

2.7

Household Assistance: Survivor's Benefits^

2.8

Unemployment Benefits or Cash Assistance to Unemployed Workers*^

2.9

2.6

Assistance to Unemployed or Underemployed Workers (e.g. job training,

subsidized employment, employment supports or incentives)*^

2.10 2.7

Healthy Childhood Environments: Child Care*^

2.11

3.6

Healthy Childhood Environments: Home Visiting*^

2.12

3.7

Healthy Childhood Environments: Services to Foster Youth or Families

Involved in Child Welfare System*^

2.13 3.8

Healthy Childhood Environments: Early Learning*^

2.14

3.1

Long-term Housing Security: Affordable Housing*^

2.15

3.10

Long-term Housing Security: Services for Unhoused Persons*^

2.16

3.11

Housing Support: Housing Vouchers and Relocation Assistance for

Disproportionately Impacted Communities*^

2.17 -

Housing Support: Other Housing Assistance*^

2.18

3.12

Social Determinants of Health: Community Health Workers or Benefits

Navigators*^

2.19 3.14

Social Determinants of Health: Lead Remediation*^

2.20

3.15

Medical Facilities for Disproportionately Impacted Communities^

2.21

Strong Healthy Communities: Neighborhood Features that Promote

Health and Safety^

2.22 -

Strong Healthy Communities: Demolition and Rehabilitation of

Properties^

2.23 -

Addressing Educational Disparities: Aid to High-Poverty Districts^

2.24

3.2

Addressing Educational Disparities: Academic, Social, and Emotional

Services*^

2.25 3.3

Addressing Educational Disparities: Mental Health Services*^

2.26

3.4

Addressing Impacts of Lost Instructional Time^

2.27

Contributions to UI Trust Funds^

2.28

2.8

Assistance to Small Businesses

Loans or Grants to Mitigate Financial Hardship^

2.29

2.9

Technical Assistance, Counseling, or Business Planning*^

2.30

Rehabilitation of Commercial Properties or Other Improvements^

2.31

Business Incubators and Start-Up or Expansion Assistance*^

2.32

Enhanced Support to Microbusinesses*^

2.33

Assistance to Non-Profits

Assistance to Impacted Nonprofit Organizations (Impacted or

Disproportionately Impacted)^

2.34 2.10

Aid to Impacted Industries

Aid to Tourism, Travel, or Hospitality^

2.35

2.11

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Expenditure Category EC

Aid to Other Impacted Industries^

2.36

2.12

Other

Economic Impact Assistance: Other*^

2.37

2.13

Household Assistance: Eviction Prevention*^

2.5

Education Assistance: Other*^

3.5

Healthy Childhood Environments: Other*^

3.9

Social Determinants of Health: Other*^

3.13

3: Public Health-Negative Economic Impact: Public Sector Capacity

General Provisions

Public Sector Workforce: Payroll and Benefits for Public Health, Public

Safety, or Human Services Workers

3.1 1.9

Public Sector Workforce: Rehiring Public Sector Staff

3.2

2.14

Public Sector Workforce: Other

3.3

Public Sector Capacity: Effective Service Delivery

3.4

7.2

Public Sector Capacity: Administrative Needs

3.5

4: Premium Pay

Public Sector Employees

4.1

Private Sector: Grants to Other Employers

4.2

5: Water, Sewer, and Broadband Infrastructure

Water and Sewer

Clean Water: Centralized Wastewater Treatment

5.1

Clean Water: Centralized Wastewater Collection and Conveyance

5.2

Clean Water: Decentralized Wastewater

5.3

Clean Water: Combined Sewer Overflows

5.4

Clean Water: Other Sewer Infrastructure

5.5

Clean Water: Stormwater

5.6

Clean Water: Energy Conservation

5.7

Clean Water: Water Conservation

5.8

Clean Water: Nonpoint Source

5.9

Drinking water: Treatment

5.10

Drinking water: Transmission & Distribution

5.11

Drinking water: Lead Remediation, including in Schools and Daycares

5.12

Drinking water: Source

5.13

Drinking water: Storage

5.14

Drinking water: Other water infrastructure

5.15

Water and Sewer: Private Wells

5.16

Water and Sewer: IIJA Bureau of Reclamation Match

5.17

Water and Sewer: Other

5.18

Broadband

Broadband: “Last Mile” projects

5.19

5.16

Broadband: IIJA Match

5.20

Broadband: Other projects

5.21

5.17

6: Revenue Replacement

Provision of Government Services

6.1

Non-federal Match for Other Federal Programs

6.2

7: Administrative

Administrative Expenses

7.1

Transfers to Other Units of Government

7.2

7.3

Transfers to Non-entitlement Units (States and territories only)

7.4

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Expenditure Category EC

Costs Associated with Satisfying Certain Legal and Administrative

Requirements of the SLFRF Program After December 31, 2024

7.3

8: Emergency Relief from Natural Disasters

Temporary Emergency Housing

8.1

Food Assistance

8.2

Financial Assistance for Lost Wages

8.3

Other Immediate Needs: Emergency Protective Measures

8.4

Other Immediate Needs: Debris Removal

8.5

Other Immediate Needs: Public Infrastructure Repair

8.6

Other Immediate Needs: Home Repairs for Uninhabitable Primary

Residences

8.7

Other Immediate Needs: Cash Assistance for Uninsured or

Underinsured Expenses

8.8

Other Immediate Needs: Cash Assistance for Low Income Households

8.9

Other Immediate Needs: Increased Operational and Payroll Costs

8.10

Other Emergency Relief: Natural Disaster that Has Occurred/Expected

to Occur Imminently

8.11

Mitigation Activities

8.12

Other Emergency Relief: Natural Disaster that is Threatened to Occur in

the Future

8.13

9: Surface Transportation projects

Surface Transportation Projects receiving funding from DOT

9.1

Surface Transportation Projects not receiving funding from DOT:

Streamlined Framework

9.2

Non-federal share requirements for a Surface Transportation project or

repaying a TIFIA loan

9.3

10: Title I projects

Acquisition of real property

10.1

Acquisition, construction, reconstruction, or installation of public works,

sites, or other public purposes

10.2

Code enforcement in deteriorated or deteriorating areas

10.3

Clearance, demolition, removal, reconstruction, and rehabilitation

10.4

Removal of barriers restricting mobility and accessibility of elderly and

handicapped persons

10.5

Payments to housing owners for losses of rental income for holding units

for relocation of displaced persons

10.6

Disposition or retention of real property

10.7

Provision of public services

10.8

Payment of non-federal match or cost-share requirements of a federal

financial assistance program in support of activities that would be eligible

under Title I

10.9

Payment of the cost of completing a project funded under title I of the

Housing Act of 1949

10.10

Relocation payments and assistance for displaced individuals, families,

businesses, organizations, and farm operations

10.11

Community development plan or policy-planning-management capacity

development

10.12

Payment of reasonable administrative costs related to establishing and

administering federally approved enterprise zones, administering the

HOME program, or planning and executing community development and

housing activities.

10.13

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Expenditure Category EC

Provision of assistance for activities carried out by public or private

nonprofit entities

10.14

Assistance to carry out a neighborhood revitalization or community

economic development or energy conservation project, or for

development of shared housing opportunities

10.15

Development of energy use strategies

10.16

Assistance to private, for-profit entities to carry out economic

development projects

10.17

Rehabilitation or development of housing assisted under 42 U.S.C.

1437o

10.18

Technical assistance to public or nonprofit entities to increase their

capacity to carry out neighborhood revitalization or economic

development activities

10.19

Housing services

10.20

Assistance to institutions of higher education

10.21

Assistance to public and private organizations, agencies, and other

entities to facilitate economic development

10.22

Activities necessary to make essential repairs and to pay operating

expenses to maintain habitability of housing units acquired through tax

foreclosure proceedings

10.23

Direct assistance to facilitate and expand homeownership

10.24

Construction or improvement of tornado-safe-shelters and assistance to

nonprofit and for-profit entities for such construction or improvement

10.25

Lead-based paint hazard evaluation and reduction

10.26

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Treasury has prepared the additional guidance below to support recipients in implementing the new

expenditure categories. This table includes only those previous expenditure categories that are

changing under the new structure, aligned with the 2022 final rule.

January 2022 Expenditure Categories

April 2022 Guidance

1: Public Health

1.7 Capital Investments or Physical Plant Changes

to Public Facilities that respond to the COVID-

19 public health emergency

EC removed, capital expenditures can be

designated in any relevant PH-NEI EC

(e.g., new hospital wing would be tracked

under EC 1.4)

1.8 Other COVID-19 Public Health Expenses

(including Communications, Enforcement,

Isolation/Quarantine)

EC is 1.7

1.9 Payroll Costs for Public Health, Safety, and

Other Public Sector Staff Responding to

COVID-19

EC is 3.1

1.10 Mental Health Services*

EC is 1.12

1.11 Substance Use Services*

EC is 1.13

1.12 Other Public Health Services

EC is 1.14

2: Negative Economic Impacts

2.5 Household Assistance: Eviction Prevention

EC is now included as part of 2.2

2.6 Unemployment Benefits or Cash Assistance to

Unemployed Workers*

EC is 2.9

2.7 Job Training Assistance (e.g., Sectoral job-

training, Subsidized Employment, Employment

Supports or Incentives)*^

EC is 2.10

2.8 Contributions to UI Trust Funds

EC is 2.28

2.9 Small Business Economic Assistance

(General)*^

If public-health related (e.g., providing

rapid tests for small businesses), EC is

1.8; if related to negative economic

impact eligible use (e.g., grants, technical

assistance, rehabilitation, incubators, or

microbusinesses), EC is 2.29-2.33

2.10 Aid to Nonprofit Organizations*

If public-health related (e.g., providing

rapid tests for non-profits), EC is 1.9; if

related to negative economic impact (e.g.,

grants to stabilize non-profit budget), EC

is 2.34

2.11 Aid to Tourism, Travel, or Hospitality

EC is 2.35

2.12 Aid to Other Impacted Industries

EC is 2.36

2.13 Other Economic Support*^

EC is 2.37, re-named Other Economic

Impact

2.14 Rehiring Public Sector Staff

EC is 3.2

3: Services to Disproportionately Impacted Communities

3.1 Education Assistance: Early Learning*^

EC is 2.14

3.2 Education Assistance: Aid to High-Poverty

Districts ^

EC is 2.24

3.3 Education Assistance: Academic Services*^

EC is 2.25, social and emotional services

will now be tracked under this EC

3.4 Education Assistance: Social, Emotional, and

Mental Health Services*^

EC is 2.26, if social and emotional

services, EC is 2.25;

3.5 Education Assistance: Other*^

EC is 2.37, collected under Other

Economic Impact

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

January 2022 Expenditure Categories

April 2022 Guidance

3.6 Healthy Childhood Environments: Child Care*^

EC is 2.11

3.7 Healthy Childhood Environments: Home

Visiting*^

EC is 2.12

3.8 Healthy Childhood Environments: Services to

Foster Youth or Families Involved in Child

Welfare System*^

EC is 2.13

3.9 Healthy Childhood Environments: Other*^

EC is 2.37, collected under Other

Economic Impact

3.10 Housing Support: Affordable Housing*^

EC is 2.15

3.11 Housing Support: Services for Unhoused

Persons*^

EC is 2.16

3.12 Housing Support: Other Housing Assistance*^

EC is 2.18

3.13 Social Determinants of Health: Other*^

EC is 2.37, collected under Other

Economic Impact

3.14 Social Determinants of Health: Community

Health Workers or Benefits Navigators*^

EC is 2.19

3.15 Social Determinants of Health: Lead

Remediation^

EC is 2.20

3.16 Social Determinants of Health: Community

Violence Interventions*^

EC is 1.11

5: Infrastructure

5.16 Broadband: “Last Mile” projects

EC is 5.19

5.17 Broadband: Other projects

EC is 5.20

7: Administrative

7.2 Evaluation and Data Analysis

EC is 3.4 and has been renamed

Effective Service Delivery

7.3 Transfers to Other Units of Government

EC is 7.2

7.4 Transfers to Non-entitlement Units (States and

territories only)

To be separately reported as part of

NEU/Non-UGLG module. Refer to Part 2

Section D.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Appendix 2: Evidenced-Based Intervention Additional Information

What is evidence-based?

For the purposes of the SLFRF, with the exception of investments in educational services (see

additional information below), evidence-based refers to interventions with strong or moderate

evidence as defined below:

Strong evidence means that the evidence base can support causal conclusions for the specific

program proposed by the applicant with the highest level of confidence. This consists of one or more

well-designed and well-implemented experimental studies conducted on the proposed program with

positive findings on one or more intended outcomes.

Moderate evidence means that there is a reasonably developed evidence base that can support

causal conclusions. The evidence base consists of one or more quasi-experimental studies with

positive findings on one or more intended outcomes OR two or more non-experimental studies with

positive findings on one or more intended outcomes. Examples of research that meet the standards

include: well-designed and well-implemented quasi-experimental studies that compare outcomes

between the group receiving the intervention and a matched comparison group (i.e., a similar

population that does not receive the intervention).

Preliminary evidence means that the evidence base can support conclusions about the program’s

contribution to observed outcomes. The evidence base consists of at least one non-experimental

study. A study that demonstrates improvement in program beneficiaries over time on one or more

intended outcomes OR an implementation (process evaluation) study used to learn about and

improve program operations would constitute preliminary evidence. Examples of research that meet

the standards include: (1) outcome studies that track program beneficiaries through a service pipeline

and measure beneficiaries’ responses at the end of the program; and (2) pre- and post-test research

that determines whether beneficiaries have improved on an intended outcome.

For investments in educational services, "evidence-based", consistent with the American Rescue

Plan Act, has the meaning in section 8101(21) of the Elementary and Secondary Education Act of

1965, as amended (20 U.S.C. 6301 et seq.). Please see page 16 of this

Frequently Asked Questions

resource on the Department of Education's Elementary and Secondary School Emergency Relief

Programs and Governor's Emergency Education Relief Programs for more information.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Appendix 3: Expenditure Categories aligned with the 2021 Interim Final Rule

1: Public Health

1.1 COVID-19 Vaccination ^

1.2 COVID-19 Testing ^

1.3 COVID-19 Contact Tracing

1.4 Prevention in Congregate Settings (Nursing Homes, Prisons/Jails, Dense Work Sites,

Schools, etc.)*

1.5 Personal Protective Equipment

1.6 Medical Expenses (including Alternative Care Facilities)

1.7 Capital Investments or Physical Plant Changes to Public Facilities that respond to the

COVID-19 public health emergency

1.8 Other COVID-19 Public Health Expenses (including Communications, Enforcement,

Isolation/Quarantine)

1.9 Payroll Costs for Public Health, Safety, and Other Public Sector Staff Responding to

COVID-19

1.10 Mental Health Services*

1.11 Substance Use Services*

1.12 Other Public Health Services

2: Negative Economic Impacts

2.1 Household Assistance: Food Programs* ^

2.2 Household Assistance: Rent, Mortgage, and Utility Aid* ^

2.3 Household Assistance: Cash Transfers* ^

2.4 Household Assistance: Internet Access Programs* ^

2.5 Household Assistance: Eviction Prevention* ^

2.6 Unemployment Benefits or Cash Assistance to Unemployed Workers*

2.7 Job Training Assistance (e.g., Sectoral job-training, Subsidized Employment,

Employment Supports or Incentives)* ^

2.8 Contributions to UI Trust Funds

2.9 Small Business Economic Assistance (General)* ^

2.10 Aid to Nonprofit Organizations*

2.11 Aid to Tourism, Travel, or Hospitality

2.12 Aid to Other Impacted Industries

2.13 Other Economic Support* ^

2.14 Rehiring Public Sector Staff

3: Services to Disproportionately Impacted Communities

3.1 Education Assistance: Early Learning* ^

3.2 Education Assistance: Aid to High-Poverty Districts ^

3.3 Education Assistance: Academic Services* ^

3.4 Education Assistance: Social, Emotional, and Mental Health Services* ^

3.5 Education Assistance: Other* ^

3.6 Healthy Childhood Environments: Child Care* ^

3.7 Healthy Childhood Environments: Home Visiting* ^

3.8 Healthy Childhood Environments: Services to Foster Youth or Families Involved in

Child Welfare System* ^

3.9 Healthy Childhood Environments: Other* ^

3.10 Housing Support: Affordable Housing* ^

3.11 Housing Support: Services for Unhoused Persons* ^

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

3.12 Housing Support: Other Housing Assistance* ^

3.13 Social Determinants of Health: Other* ^

3.14 Social Determinants of Health: Community Health Workers or Benefits Navigators* ^

3.15 Social Determinants of Health: Lead Remediation ^

3.16 Social Determinants of Health: Community Violence Interventions* ^

4: Premium Pay

4.1 Public Sector Employees

4.2 Private Sector: Grants to Other Employers

5: Infrastructure

5.1 Clean Water: Centralized Wastewater Treatment

5.2 Clean Water: Centralized Wastewater Collection and Conveyance

5.3 Clean Water: Decentralized Wastewater

5.4 Clean Water: Combined Sewer Overflows

5.5 Clean Water: Other Sewer Infrastructure

5.6 Clean Water: Stormwater

5.7 Clean Water: Energy Conservation

5.8 Clean Water: Water Conservation

5.9 Clean Water: Nonpoint Source

5.10 Drinking water: Treatment

5.11 Drinking water: Transmission & Distribution

5.12 Drinking water: Transmission & Distribution: Lead Remediation

5.13 Drinking water: Source

5.14 Drinking water: Storage

5.15 Drinking water: Other water infrastructure

5.16 Broadband: “Last Mile” projects

5.17 Broadband: Other projects

6: Revenue Replacement

6.1 Provision of Government Services

7: Administrative

7.1 Administrative Expenses

7.2 Evaluation and Data Analysis

7.3 Transfers to Other Units of Government

7.4 Transfers to Non-entitlement Units (States and territories only)

7.5 Costs Associated with Satisfying Certain Legal and Administrative Requirements of

the SLFRF Program After December 31, 2024

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Revision Log

Version

Date Published

Summary of changes

1.0

June 17, 2021

Initial publication

1.1

June 24, 2021

• Pg. 12, removed references to “summary” level with

respect to reporting by Expenditure Categories in the

Interim Report to avoid confusion.

• Pg. 13, revised the coverage period end date for the

Interim Report from June 30, 2021 to July 31, 2021 to

align with the IFR.

• Pg. 13, removed references to “summary” level with

respect to reporting by Expenditure Categories in the

Interim Report to avoid confusion.

• Pg. 31, removed references to “summary level” with

respect to Expenditure Categories in Appendix 1 to avoid

confusion.

1.1

September 30, 2021

• Announced the extension in the Project and Expenditure

Report submission date, originally due on October 31,

2021.

2.0

November 5, 2021

• Updated Subrecipient Monitoring section to clarify

beneficiaries and recipients.

• Updated references to 2021 Interim Final Rule comment

period as comment period is closed.

• Updated reporting tiers, thresholds and timelines in Part 2

Table 2, Reporting Requirements by recipient type, as

well as Part 2 A and Part 2 B.

• Updated reporting periods for Interim Report and Project

and Expenditure reports.

• Added concept of Adopted Budget to Project and

Expenditure Report data fields.

• Noted phase in of Required Programmatic Data in the

Project and Expenditure Report.

• Removed certain data fields from the Ineligible Activities:

Tax Offset Provision under the Recovery Plan.

• Separated reporting of NEU Distributions (for States and

territories) from the Interim Report and Project and

Expenditure Reports as information will be provided on

an ongoing basis.

2.1

November 15, 2021

• Updated pages 9 and 11 to note that civil rights

certification is not applicable to Tribal Governments.

3.0

February 28, 2022

• Updated to incorporate reporting updates under the 2022

final rule

4.0

June 10, 2022

• Updated Recovery Plan guidance to incorporate minor

revisions

• Updated language around certain data fields that were

required for April 2022 reporting

• Updated data fields for Ineligible Activities: Tax Offset

Provision for the Project and Expenditure report

• Updated Broadband data fields

4.1

June 17, 2022

• Updated clerical errors in Ineligible Activities: Tax Offset

Provision

4.2

August 15, 2022

• Updated to clarify resources for Uniform Guidance

applicability and add a reference to an alternative to the

Single Audit available for eligible recipients

5.0

September 20, 2022

• Updated to note phase in of broadband location by

location data fields

5.1

June 1, 2023

• Updated to include Fabric ID and Provider ID fields for

broadband location by location data collection.

Coronavirus State and Local Fiscal Recovery Funds

Compliance and Reporting Guidance

Version

Date Published

Summary of changes

5.2

September 27, 2023

• Updated to reflect changes from the 2023 Interim Final

Rule

• Updated reporting related to subrecipients’ Unique Entity

Identifier (UEI)

5.3

November 30, 2023

• Additional guidance associated with additional

programmatic data (performance indicators) required

from Tier 1 recipients

5.4

December 14, 2023

• Update related to Unique Entity Identifier (UEI)

requirements

6.0

March 28, 2024

• Updated to reflect new expenditure category from the

Obligation IFR: Costs associated with satisfying certain

legal and administrative requirements under the SLFRF

award

• Updated upload requirement for certain Title I projects

7.0

June 28, 2024

• Updated to reflect requirements for reporting estimates

for personnel costs, contract change order and

contingency costs, and certain administrative and legal

costs to be expended after the obligation deadline

• Updated to reflect requirements for reporting the

obligation of funds via interagency agreements