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AS OF JUNE 24, 2021 <br />17 <br /> <br />Under 602(c)(1)(C) or 603(c)(1)(C), recipients may use funds for maintenance of <br />infrastructure or pay-go spending for building of new infrastructure as part of the general <br />provision of government services, to the extent of the estimated reduction in revenue due <br />to the public health emergency. <br /> <br />Under 602(c)(1)(A) or 603(c)(1)(A), a general infrastructure project typically would not <br />be considered a response to the public health emergency and its negative economic <br />impacts unless the project responds to a specific pandemic-related public health need <br />(e.g., investments in facilities for the delivery of vaccines) or a specific negative <br />economic impact of the pandemic (e.g., affordable housing in a Qualified Census Tract). <br /> <br />4.3. May recipients use funds to pay interest or principal on outstanding debt? <br /> <br />No. Expenses related to financing, including servicing or redeeming notes, would not <br />address the needs of pandemic response or its negative economic impacts. Such expenses <br />would also not be considered provision of government services, as these financing <br />expenses do not directly provide services or aid to citizens. <br /> <br />This applies to paying interest or principal on any outstanding debt instrument, including, <br />for example, short-term revenue or tax anticipation notes, or paying fees or issuance costs <br />associated with the issuance of new debt. <br /> <br />4.4. May recipients use funds to satisfy nonfederal matching requirements under the <br />Stafford Act? May recipients use funds to satisfy nonfederal matching requirements <br />generally? <br /> <br />Fiscal Recovery Funds are subject to pre-existing limitations in other federal statutes and <br />regulations and may not be used as non-federal match for other Federal programs whose <br />statute or regulations bar the use of Federal funds to meet matching requirements. For <br />example, expenses for the state share of Medicaid are not an eligible use. For information <br />on FEMA programs, please see here. <br /> <br />4.5. Are governments required to submit proposed expenditures to Treasury for <br />approval? [5/27] <br /> <br />No. Recipients are not required to submit planned expenditures for prior approval by <br />Treasury. Recipients are subject to the requirements and guidelines for eligible uses <br />contained in the Interim Final Rule. <br /> <br />4.6. How do I know if a specific use is eligible? [5/27] <br /> <br />Fiscal Recovery Funds must be used in one of the four eligible use categories specified in <br />the American Rescue Plan Act and implemented in the Interim Final Rule: <br />