Treasury Delays SLFRF Project, Expenditure Reporting Deadline

Governmental entities concerned about the approaching deadline for the project and expenditure report under the Department of the Treasury’s State and Local Fiscal Recovery Fund (SLFRF) program, take note! You now have more time to comply.

Treasury last week sent letters to states, local governments, tribal governments and territories that are SLSRF recipients, stating that as a result of recipient feedback, the agency is revising the report submission deadlines. Rather than requiring states, local governments, tribal governments and territories to submit their project and expenditure report on Oct. 31, it will now require it on Jan. 31, 2022, and it will cover the period between the award date and Dec. 31, 2021. For non-entitlement units of government (NEUs), the report will now be due on Aug. 30, 2022, and will cover the period between the award date and March 31, 2022.

The letter to states included a sample letter that states could send to NEUs advising them of the new deadlines. Treasury added that it will provide further instructions, including updates to existing guidance and a user guide to assist recipients in gathering and submitting information through Treasury’s SLFRF Portal, at a later date. The agency emphasized that states and territories should continue the monthly NEU/non-units of general local government distribution information though Treasury’s portal.

In addition, Treasury issued guidance this week stating that it has the authority to split SLFRF funding into two equal payments for states and territories. Specifically, the statute states that Treasury may “withhold payment of up to 50% of the amount allocated to each state and territory (other than payment of the amount allocated under paragraph (3)(B)(ii) to the District of Columbia) for a period of up to 12 months from the date on which the state or territory provides the certification required under subsection (d)(1).” Treasury “shall exercise such authority with respect to a state or territory based on the unemployment rate in the state or territory as of such date.”

Based on this provision, Treasury will split the total amount of state funding into two equal payments for all state governments, except for states where the unemployment rate is 2.0 or more percentage points above its pre-pandemic level. The agency posted the attached table this week to show which states received split payments.

The SLFRF program continues to evolve. Stay tuned to Thompson Grants for more updates.

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Advanced Federal Grants Forum | October 13 - 14, 2021 | Virtual Event
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