NACO ACTION ALERT - CONTACT YOUR SENATORS TO OPPOSE CRA TO OVERTURN OBLIGATION IFR FOR STATE AND LOCAL FISCAL RECOVERY FUND

A group of U.S. Senators introduced a Congressional Review Act (CRA) joint resolution to overturn the Obligation Interim Final Rule (IFR) published by the U.S. Department of Treasury (Treasury) in November 2023 for the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Fund (SLFRF).

If passed, counties would no longer be able to invest SLFRF dollars towards certain personnel costs, reclassify excess funds after the December 31, 2024 deadline and flexibilities for subrecipients would be limited.

The Obligation IFR and Treasury's associated FAQs, which NACo strongly supports and advocated for, provides states and local governments with critical guidance and flexibilities related to the December 31, 2024 deadline for recipients to obligate ARPA SLFRF funds.

Passage of the CRA would overturn the Obligation IFR and negate associated FAQs providing counties with key flexibilities in obligating funds.

The U.S. Senate could consider this CRA as soon as Wednesday, May 15.

UPDATED U.S. TREASURY GUIDANCE ON OBLIGATION AND PERSONNEL

A significant NACo WIN, on March 29, the U.S. Treasury released new Frequently Asked Questions (FAQs) related to their Obligation Interim Final Rule (IFR) for the ARPA Recovery Funds for counties and other state and local governments. Addressing concerns raised by NACo, the FAQs offer insights into personnel costs, subrecipient obligations, revenue loss and handling excess funds. For more information, please contact Eryn Hurley, Director of Government Affairs & Federal Fellowship Initiative, at ehurley@naco.org.

FCC FIX GEOROUTING OF 988 SUICIDE PREVENTION CALLS

NACo joined a group of bipartisan congressional leaders and Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel in announcing steps to improve the 988 National Suicide Lifeline. The FCC will issue a Notice of Proposed Rulemaking (NPRM) on georouting for 988, making the 988 Lifeline more accessible and better connected to local mental health services. Learn more about the FCC announcement.

EPA ISSUES "FOREVER CHEMICALS" STANDARDS

The U.S. Environmental Protection Agency (EPA) issued its first-ever national drinking water standard for PFAS, also known as “forever chemicals.” The final regulation sets limits for PFOA and PFOS – the two best understood types of PFAS – at 4 parts per trillion, or close to zero. It also sets maximum levels for three other types of PFAS at 10 parts per trillion. The regulation will have a significant impact on water utilities across the country, including those owned or operated by counties. The EPA estimates that the regulation will cost $1.5 billion per year, but other estimates put annual costs at between $2.5 - $3.2 billion. As additional information on the drinking water standard is released, NACo will inform county leaders of impacts and next steps. 

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