State, territorial, local, and Tribal governments receiving funds from Treasury should ensure that funds transferred to other entities, whether pursuant to a grant program or otherwise, are used in accordance with section 601(d) of the Social Security Act as implemented in the Guidance. Please see the answer provided by the Internal Revenue Service (IRS) available at https://www.irs.gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions. Such a grant would be analogous to a loan provided by the Fund recipient itself that incorporates similar loan forgiveness provisions. Through the Coronavirus Relief Fund, the CARES Act provides for payments to State, Local, and Tribal governments navigating the impact of the COVID-19 outbreak. establishing the XML-based Federal Register as an ACFR-sanctioned The Guidance says that funding can be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. DISCLAIMER: Please note that the situation surrounding COVID-19 is evolving and that the subject matter discussed in these publications may change on a daily basis. Are expenses associated with contact tracing eligible? 2605 et seq. The federal Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") provided Massachusetts with a total of approximately $2.5 billion through the new Coronavirus Relief Fund (CvRF) to use for expenditures related to the COVID-19 public health emergency. This feature is not available for this document. Must a stay-at-home order or other public health mandate be in effect in order for a government to provide assistance to small businesses using payments from the Fund? Fund payments may be used for subsidy payments to electricity account holders to the extent that the subsidy payments are deemed by the recipient to be necessary expenditures incurred due to the COVID-19 public health emergency and meet the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. An employer may also track time spent by employees related to COVID-19 and apply Fund payments on that basis but would need to do so consistently within the relevant agency or department. May Fund payments be used for COVID-19 public health emergency recovery planning? Your donation to this fund will help stop the spread of the virus, including the highly contagious Omicron variant, to protect us all. Regardless of how the assistance is structured, the financial assistance provided would have to be related to COVID-19. Expenditures related to a State, territorial, local, or Tribal government payroll support program. documents in the last year, 122 Such assistance could include, for example, a program to assist individuals with payment of overdue rent or mortgage payments to avoid eviction or foreclosure or unforeseen financial costs for funerals and other emergency individual needs. Are Fund payments considered federal financial assistance for purposes of the Single Audit Act? Provider Relief Fund payments are being disbursed via both "General" and "Targeted" Distributions. Tribal governments that failed to respond to multiple requests by Treasury to complete or correct their submissions of employment and expenditure information were no longer able to provide such information to Treasury after 11:59 pm Alaska Daylight Time on Saturday, June 6. Expenditures paid for with payments from the Fund must be limited to those that are necessary due to the public health emergency. each of which was published on Treasury's website, except for the following changes. If capital improvement projects are not necessary expenditures incurred due to the COVID-19 public health emergency, then Fund payments may not be used for such projects. A recipient may use payments from the Fund to purchase a durable good that is to be used during the current period and in subsequent periods if the acquisition in the covered period was necessary due to the public health emergency. This would include, for example, the costs of redeploying corrections facility staff to enable compliance with COVID-19 public health precautions through work such as enhanced sanitation or enforcing social distancing measures; the costs of redeploying police to support management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty's ordinary responsibilities. The documents posted on this site are XML renditions of published Federal The statute also specifies that expenditures using Fund payments must be necessary. The Department of the Treasury understands this term broadly to mean that the expenditure is reasonably necessary for its intended use in the reasonable judgment of the government officials responsible for spending Fund payments. 37. 7. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel. Furthermore, the budget most recently approved as of March 27, 2020, provides the spending baseline against which expenditures should be compared for purposes of determining whether they may be covered using payments from the Fund. Notifications from this discussion will be disabled. by the Foreign Assets Control Office Once the email address is confirmed please provide your Account Number to activate your Print Subscription Service. The guidance published below is unchanged from the last version of the guidance dated September 2, 2020,[1] Tribe ATG Final Distribution Welfare Assistance CV Distribution ALASKA Afognak 218,806 4,158 ALASKA Agdaagux Tribe of King Cove 437,612 8,391 ALASKA Akhiok . The meeting will be held on Friday, September 4, 2020 at 12:00 p.m. AKT. B. [3], 3. Is there a specific definition of hazard pay? 5401 0 obj <> endobj Please contact your responsible Holland & Knight lawyer or the authors of this alert for timely advice. acquiring computers and similar digital devices; acquiring and installing additional ventilation or other air filtering equipment; incurring additional transportation costs; or. Please log in, or sign up for a new account and purchase a subscription to continue reading. First, we estimate the state will receive about $9.5 billion from the Coronavirus Relief Fund (CRF) . Coronavirus Relief Fund Through the Coronavirus Relief Fund, the CARES Act provides for payments to State, Local, and Tribal governments navigating the impact of the COVID-19 outbreak. As previous guidance has stated, payments from the Fund may be used to meet the non-federal matching requirements for Stafford Act assistance to the extent such matching requirements entail COVID-19-related costs that otherwise satisfy the Fund's eligibility criteria and the Stafford Act. Register, and does not replace the official print version or the official 40. If a State determines that expanding meat processing capacity, including by paying overtime to USDA meat inspectors, is a necessary expense incurred due to the public health emergency, such as if increased capacity is necessary to allow farmers and processors to donate meat to food banks, then such expenses are eligible expenses, provided that the expenses satisfy the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance. 6. What rules apply to the proceeds of disposition or sale of assets acquired using payments from the Fund? Investments in improvements to water and sewer infrastructure, including projects that address the impacts of climate change. FRF may be used to respond to the COVID-19 public health emergency or its negative economic impacts. The law directed Treasury to disburse the money "not later than 30 days" after its enactment, which was on March 27. on incurring additional costs of providing meals. Paycheck Protection Program This forgivable loan helps keep your workforce employed. 3. Section 601(f)(2) of the Social Security Act provides that if the Treasury OIG determines that a recipient of payments from the Fund has failed to comply with the use of funds provisions of section 601(d), the amount equal to the amount of funds used in violation of such subsection shall be booked as a debt of such entity owed to the federal government. endstream endobj 5402 0 obj <. Yes, if the loans otherwise qualify as eligible expenditures under section 601(d) of the Social Security Act as implemented by the Guidance. documents in the last year, by the National Oceanic and Atmospheric Administration The most recently approved budget refers to the enacted budget for the relevant fiscal period for the particular government, without taking into account subsequent supplemental appropriations enacted or other budgetary adjustments made by that government in response to the COVID-19 public health emergency. Through the Coronavirus Relief Fund, the CARES Act provided payments to state, local, and tribal governments navigating the impact of the COVID-19 outbreak. To this end, as an administrative convenience, Treasury will presume that expenses of up to $500 per elementary and secondary school student are eligible expenditures, such that schools do not need to document the specific use of funds up to that amount. The Treasury Department's guidance clarifies that performance/delivery may occur until Dec. 31, 2026. Any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the Fund's eligibility criteria. 9. documents in the last year, 86 regulatory information on FederalRegister.gov with the objective of informational resource until the Administrative Committee of the Federal The Tribe has a responsibility to protect and promote the general welfare interests of its members and to assist in providing support to its members. Emergency medical response expenses, including emergency medical transportation, related to COVID-19. Be Proactive. Yes, expenses associated with contact tracing are eligible.Start Printed Page 4189. documents in the last year, 853 If the responsible government official determines that expenses incurred to refund eligible higher education expenses are necessary and would be incurred due to the public health emergency, then such expenses would be eligible as long as the expenses satisfy the other criteria set forth in section 601(d) of the Social Security Act. 2. Furthermore, as discussed in the Guidance above, as with any other cost, an administrative cost that has been or will be reimbursed under any federal program may not be covered with the Fund. Guidance on eligible uses of Fund disbursements by governments is available below. At stake is about $500 million. We are working alongside our partners at the local, state and national levels to actively provide updates and information for Chickasaws, employees, the public . The documents are linked individually below and can also be accessed on the Treasury Department's website. Recipients will need to consider the applicable restrictions and limitations of such other sources of funding. 12. Given that it is not always possible to estimate with precision when a good or service will be needed, the touchstone in assessing the determination of need for a good or service during the covered period will be reasonableness at the time delivery or performance was sought, e.g., the time of entry into a procurement contract specifying a time Start Printed Page 4184for delivery. We'd love to hear eyewitness May a State impose restrictions on transfers of funds to local governments? accounts, the history behind an article. [FR Doc. As noted previously on Treasury's website, on August 10, 2020, the frequently asked questions were revised to add Questions A.49-52. Treasury recognizes that schools are generally incurring an array of COVID-19-related expenses to either provide distance learning or to re-open. Expenses for disinfection of public areas and other facilities. This repetition of headings to form internal navigation links *The financial institution address for Treasury's routing number is 33 Liberty Street, New York, NY 10045. The direct recipient of payments from the Fund is ultimately responsible for compliance with this limitation on use of payments from the Fund. A government should keep records sufficient to demonstrate that the amount of Fund payments to the government has been used in accordance with section 601(d) of the Social Security Act. The bulk of Coronavirus Relief Fund assistance was allocated to state governments, but . It was viewed 18 times while on Public Inspection. publication in the future. The prohibition on payment for abortions and health benefits coverage that includes coverage of abortion does not apply to an abortion if the pregnancy is the result of an act of rape or incest; or in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed. or anything. 7/16/2020 Cheyenne and Arapaho Tribes received a total of $63.4 million in COVID-19 relief funds 7/2/2020 COVID-19 continues to spread across the state of Oklahoma 6/30/2020 Third Amended Executive Order 2020-02 5/28/2020 Judicial Branch's Updated Response to COVID-19 and Phased Reopening 5/27/2020 Executive Branch Amended Executive Order 2020-02 The Interim Final Rule prescribes the methodology to be used, and compares actual revenue to anticipated revenue in 2020, 2021, 2022 and 2023. 10:00am to 11:30am PDT . 51. Furthermore, if a Fund recipient uses the presumption with respect to a school, any other Fund recipients providing aid to that school may not use the Fund to cover the costs of additional aid to schools other than with respect to the specific costs listed above. Law and Justice. 3. documents in the last year, 83 Information about this document as published in the Federal Register. In the context of acquisitions of real estate and acquisitions of equipment, this means that the acquisition itself must be necessary. Email . Information contained in this alert is for the general education and knowledge of our readers. 8. 9. Although a broad range of uses is allowed, revenue replacement is not a permissible use of Fund payments. Eligible local governments were required to submit the certification required by the CARES Act to Treasury by 11:59 pm Eastern Daylight Time on Friday, April 17 in order to receive payment. Do governments have to return unspent funds to Treasury? Expenses for care for homeless populations provided to mitigate COVID-19 effects and enable compliance with COVID-19 public health precautions. A program that is aimed at assisting small businesses with the costs of business interruption caused by required closures should be tailored to assist those businesses in need of such assistance. Both grants provide funding to respond to the COVID-19 outbreak and the impacts of the COVID-19 outbreak. In addition, because State A is availing itself of the $500 per elementary and secondary school student presumption, State A also may use Fund payments to expand broadband capacity and to hire new teachers, but it may not use Fund payments to acquire additional furniture. Does the National Environmental Policy Act. FEMA Learn more about FEMA consideration and eligible expense Appropriated Coronavirus Relief Fund Contracting Process The Life Cycle for Coronavirus Relief Funds Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Illustrated Version of the Contracting Process Do not send any privileged or confidential information to the firm through this website. Putting this requirement together with the other provisions discussed above, section 601(d) may be summarized as providing that a State, local, or tribal government may use payments from the Fund only to cover previously unbudgeted costs of necessary expenditures incurred due to the COVID-19 public health emergency during the covered period. Yes, provided that the transferred funds are used by the local government for eligible expenditures under the statute. daily Federal Register on FederalRegister.gov will remain an unofficial L. 116-94) for funds for programs authorized under section 330 through 340 of the Public Health Service Act (42 U.S.C. If a State makes a payment to an individual under the lost wages assistance program and later determines that such individual was ineligible for the program, the ineligibility determination has the following consequences: A grant made to cover interest and principal costs of a loan, including interest and principal due after the period that begins on March 1, 2020, and ends on December 31, 2021 (the covered period), will be considered to be incurred during the covered period if (i) the full amount of the loan is advanced to the borrower within the covered period and (ii) the proceeds of the loan are used by the borrower to cover expenses incurred during the covered period. 75 on reporting and recordkeeping that would apply to the recipient: The prime recipient is responsible for determining the level and detail of documentation needed from the sub-recipient of small business assistance to satisfy [the requirements of section 601(d) of the Social Security Act], however, there would need to be some proof that the small business was impacted by the public health emergency and was thus eligible for the CRF funds. Register documents. racist or sexually-oriented language. General. To the extent that the relevant government official determines that these expenses are necessary and they meet the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance, these expenses are eligible. 55. No. May payments from the Fund be used to cover across-the-board hazard pay for employees working during a state of emergency? If the business has received a loan from the SBA that may be forgiven, the recipient should assume for purposes of determining the business' need that the loan will be forgiven. Winds ENE at 5 to 10 mph. 6. Projects supported with payments from the Fund may still be subject to NEPA review if they are also funded by other federal financial assistance programs. 5. The Confederated Tribes of the Colville Reservation is operating its CCDF program under a P.L. The CARES Act established the Coronavirus Relief Fund (the Fund) and appropriated $150 billion to the Fund. . 13. 11. Importantly, although the American Rescue Plan requires costs to be incurred by Dec. 31, 2024, the Treasury Department has interpreted "incurred" as meaning that FRF must be obligated by Dec. 31, 2024. The Treasury Inspector General could perform audits and retains the right to recoup FRF that is unspent or improperly used. 1302(a). For example, the cost of a good that must be delivered in December in order to be available for use in January could be covered using payments from the Fund. For example, a recipient may use payments from the Fund to cover hazard pay for a police officer coming in close contact with members of the public to enforce public health or Start Printed Page 4186public safety orders, but across-the-board hazard pay for all members of a police department regardless of their duties would not be able to be covered with payments from the Fund. A portion of such expenses may be able to be covered, however, as discussed below. May recipients use Fund payments to facilitate livestock depopulation incurred by producers due to supply chain disruptions? To be eligible for the General Distributions, a provider must have billed Medicare fee-for-service in 2019, be a known Medicaid and CHIP or dental provider and provide or provided after January 31, 2020 diagnoses, testing, or care for individuals with possible or actual cases of COVID-19. Yes. The Treasury Department will release the FRF allocations to tribes in two tranches, the first in May and the second in June. Treasury has provided examples as to what would constitute a substantially different use. electronic version on GPOs govinfo.gov. The CARES Act provides that payments from the Fund may only be used to cover costs that. The first quarterly report will cover from date FRF is received to Sept. 30, 2021. Please note that email communications to the firm through this website do not create an attorney-client relationship between you and the firm. To the extent the expenses were previously unbudgeted and are otherwise consistent with section 601(d) of the Social Security Act outlined in the Guidance, such expenses would be eligible. In determining the business' eligibility for the grant, the recipient should not rely on self-certifications provided to the SBA. Fund payments made by Treasury to State, territorial, local, and Tribal governments do not entail grant agreements and thus the provisions of the Uniform Guidance (2 CFR part 200) applicable to grant agreements do not apply. provide legal notice to the public or judicial notice to the courts. 4. developer tools pages. Yes, to the extent these efforts are deemed necessary for public health reasons or as a form of economic support as a result of the COVID-19 health emergency. For example, a county may transfer funds to a city, town, or school district within the county and a county or city may transfer funds to its State, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. has no substantive legal effect. As a matter of administrative convenience, the entire payroll cost of an employee whose time is substantially dedicated to mitigating or responding to the COVID-19 public health emergency is eligible, provided that such payroll costs are incurred by December 31, 2021. headings within the legal text of Federal Register documents. from 36 agencies. If the cost of an employee was allocated to administrative leave to a greater extent than was expected, the cost of such administrative leave may be covered using payments from the Fund. 102-477 Plan and intends to provide the following services in accordance with its approved 477 On October 19, 2020, Questions A.57-59 and B.13 were added and Questions A.42, 49, and 53 were revised. Attorney Advertising. We continue to offer PPP loan forgiveness. Costs of providing COVID-19 testing, including serological testing. One key part of the CARES Act was the Coronavirus Relief Fund, which provided $150 billion in direct federal fiscal support to governments in states, territories, and tribal areas to cover expenditures incurred due to the COVID-19 public health emergency. The full amount of payroll and benefits expenses of substantially dedicated employees may be covered using payments from the Fund. With the new delta variant of the COVID-19 virus, our cases of the disease are as bad as they have ever been. In March 2020, the CARES Act established the Coronavirus Relief Fund, which allocated $8 billion to tribal governments and Alaska Native Corporations to address "necessary expenditures" incurred due to COVID-19. hbbd```b``v@$X( &H`@$ Vj` D:I v{Ha`bd]v# >U The remaining 35 percent ($6.65 billion) will be allocated pro rata based on each tribe's total government and business employees. Coronavirus Relief Fund by GlobalGiving Story Projects . Accordingly, it is very important that tribes spend FRF consistent with law and the Treasury Department's guidance. As reflected in the Guidance and FAQs, Treasury has not interpreted this provision to limit eligible costs to those that are incremental increases above amounts previously budgeted. To the extent that the costs incurred by a state unemployment insurance fund are incurred due to the COVID-19 public health emergency, a State may use Fund payments to make payments to its respective state unemployment insurance fund, separate and apart from such State's obligation to the unemployment insurance fund as an employer. The CARES Act also requires that payments be used only to cover costs that were not accounted for in the budget most recently approved as of March 27, 2020. See 42 CFR 433.51 and 45 CFR 75.306. and the frequently asked questions document dated October 19, 2020,[2] 1. Please provide the following instructions to your Financial Institution for the remittance of Automated Clearing House (ACH) credits to the Department of the Treasury. Four of the documents are specific to tribal governments, while the others apply to state, local and tribal governments. For this reason, and as a matter of administrative convenience in light of the emergency nature of this program, a State, territorial, local, or Tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise. Sault Tribe allocates $125M in American Rescue Plan funds The tribe is issuing member relief at $2,000 for each and every tribal member everywhere and for all ages. Supporting small businesses, helping them to address financial challenges caused by the pandemic, and to make investments in COVID-19 prevention and mitigation tactics. A cost meets this requirement if either (a) the cost cannot lawfully be funded using a line item, allotment, or allocation within that budget or (b) the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. Yes. Is a Fund payment recipient required to transfer funds to a smaller, constituent unit of government within its borders? 17. 4. A cost is not considered to have been accounted for in a budget merely because it could be met using a budgetary stabilization fund, rainy day fund, or similar reserve account. Please see the answer provided by the IRS available at https://www.irs.gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions. Figure 5 shows our estimate of federal COVID-19-related funding that tribal governments will use for the administration of programs and to provide services. Federal Register. The guidance provides that funding may be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 12005 of the Coronavirus Aid, Relief, and Economic Security Act, also called the CARES Act. 16. Funds are available to reimburse districts for a 25% share of costs associated with personal protective equipment (PPE) and medical and cleaning supplies for school buildings and . The introduction of the guidance and frequently asked questions have been modified to reflect this publication in the Federal Register; the guidance and frequently asked questions have been revised throughout to reflect that the end date of the period during which eligible expenses may be incurred has been extended to December 31, 2021;[3]