NLC Urges Congress To Provide Funding for Treasury Help Centers

Lately it seems as if our blog posts are following up on previous discussions. This post is no different. On the heels of the Department of the Treasury’s recent letter addressing cutbacks to services provided to recipients under its pandemic relief programs, including the Coronavirus State and Local Relief Fund (SLFRF), officials with the National League of Cities (NLC) are calling for Congress to take steps to provide funding flexibility that would allow Treasury to maintain these services.

Treasury explained in last month’s letter that it is facing financial constraints that threaten its ability to provide administrative staffing for support services for recovery programs, including SLFRF, Emergency Rental Assistance, the Coronavirus Capital Projects Fund, the Homeowner Assistance Fund, and the Local Assistance and Tribal Consistency Fund. Treasury warned that without necessary funding flexibility from Congress, it will have to take more significant steps to reduce staffing and services.

When Treasury announced that the contact center for recovery programs would no longer be able to respond to specific questions from thousands of local government grantees as of Oct. 17, NLC officials expressed concerns that the negation of these services will particularly hamper small cities and towns, many of which are managing their first federal grant with minimal staffing and resources and have been the most reliant on direct Treasury guidance.

“Without Treasury’s guidance, small communities doing their part for post-pandemic recovery will be on their own,” said Irma Esparza Diggs, NLC senior executive and director of federal advocacy. “Treasury has been providing critical guidance to help small and rural communities, and we urge Congress to restore this lifeline. This would not require new money, simply a fix that would allow Treasury to utilize funds already appropriated. Congress can fix this by including H.R. 5735, the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act, in the next government funding bill that Congress must pass in December. It would simply allow Treasury the flexibility to utilize funds already appropriated.”

NLC noted that almost all non-entitlement units of local government will file their next annual report in April 2023, which is still several months away. This provides some time for Congress to enact an adequate solution to address the lack of support services from the Department of Treasury for SLFRF grantees, since the filing deadline is when many municipalities need further guidance and assistance to comply with filing regulations.

NLC has established a campaign to help make its case to Congress, whereby its members can notify their House member to urge him or her to include H.R. 5735 in the next passed funding bill to help Treasury re-open their helplines. We will follow the progress to H.R. 5735 to see whether it receives the needed support.

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