Issue Brief 23-10
August 24, 2023

As part of the fiscal year (FY) 2023 omnibus appropriations bill, Congress enacted the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act (Division LL). Among other changes, the law expands the purposes for which recipients may use the American Rescue Plan’s (ARP’s) State and Local Fiscal Recovery Funds (SLFRF). In Issue Brief 23-02, FFIS summarized the expansion in detail, identified the programs affected by it, and provided estimates of how much state and local governments could devote to certain activities.

Treasury has now issued an Interim Final Rule (IFR) addressing the expanded uses of the SLFRF for the following:

  • Natural disasters
  • Surface transportation projects
  • Community development

It also released an overview of the rule. This Issue Brief summarizes the IFR. Comments on the IFR will be accepted for 60 days after its publication in the Federal Register, which has yet to occur.