FY 2023 Omnibus Expands Uses of Fiscal Recovery Funds

As part of the FY 2023 omnibus appropriations bill, Congress enacted the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act (Division LL). The law makes the following changes to programs funded under the American Rescue Plan (ARP) and the CARES Act:

• Allows state and local governments to use the ARP’s State and Local Fiscal Recovery Funds (SLFRF) for infrastructure and other projects
• Amends the ARP’s Local Assistance and Tribal Consistency Fund
• Provides additional funds for the Department of the Treasury (Treasury) to administer fiscal assistance programs
• Gives tribal governments more time to use Coronavirus Relief Fund (CRF) payments from the CARES Act

This Issue Brief summarizes the law. The accompanying spreadsheet lists SLFRF allocations for each metropolitan city, county, and non-entitlement unit of local government, plus the allowable infrastructure spending for each recipient.