Bipartisan Effort to Enhance Local Government Funding Flexibility

The seven leading organizations representing state, territory, and local governments have written a joint letter to congressional leaders, urging the inclusion of the Senate-passed State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act in the next legislative or spending bill. This bipartisan provision aims to give local governments more flexibility when using American Rescue Plan Act (ARPA) funding to revitalize their communities and prepare for the future. The bill would also permit the Treasury Department to continue its effective administration of this historic program.

Key Takeaways:

• The seven leading organizations representing state, territory, and local governments, including the National League of Cities, have sent a joint letter to congressional leaders to include the Senate-passed State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act in the next legislative or spending bill.
• The bipartisan provision aims to provide local governments with more flexibility when using ARPA funding to reinvigorate their communities and prepare for the future, focusing on critical infrastructure and natural disaster response.
• The bill would also allow the Treasury Department to continue its effective administration of this historic program, providing additional flexibility under the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) included in the American Rescue Plan Act (ARPA).
• The legislation would streamline and strengthen the implementation of the $350 billion provided under ARPA by allowing local governments to use funds for emergency relief from natural disasters or the negative economic impacts of natural disasters.
• The Department of the Treasury would receive flexibility to continue advising and supporting member governments as they carry out crucial programs, including the State and Local Fiscal Recovery Funds.
• America's state, territory, and local governments have been engaged in the nation's response to COVID-19 since the earliest days and are requesting the inclusion of this flexibility to continue responding effectively to ongoing needs.

Statistics:

• $350 billion: The amount provided under the American Rescue Plan Act (ARPA) for state, territory, and local governments.
• $10 million or 30 percent of total ARPA allocation: The allowed amount that can be used for new, separate infrastructure-related activities authorized under federal surface transportation laws or Title I of the Housing and Community Development Act of 1974.
• 200 million: The number of people represented by the National League of Cities (NLC) in state, territory, and local governments.

Sources:

• The National League of Cities (NLC) - The National League of Cities (NLC) is the voice of America's cities, towns and villages, representing more than 200 million people across the country.
• S. 3011/H.R. 5735 - The bipartisan State, Local Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act.