Category: State Fiscal Recovery

By Blair Lozier

The U.S. Department of the Treasury has updated guidance that expands the use of the American Rescue Plan Act State and Local Fiscal Recovery Funds for affordable housing.

The Treasury released a How-to Guide that demonstrates how recipients can leverage the fiscal recovery funding with other sources to maximize resources to meet housing needs. This article summarizes the expanded options that states may pursue to invest State and Local Fiscal Recovery funding in affordable housing.

The guide discusses two options available to states.

Option 1: State and local governments can use recovery funds for affordable housing projects that are categorized in the American Rescue Plan Act under Public Health and Negative Economic Impact. Recipients are presumptively eligible for additional funding if they already qualify for related pre-existing federal programs.

Expanded Presumptive Eligibility

A project is deemed to be presumptively eligible if it meets standards for pre-existing federal programs set by the Treasury. If the housing units or development in question meet the presumptive eligibility requirements, no further approval process will be required.

The Treasury presumes that the following affordable housing investments are eligible uses of fiscal recovery funds in response to the negative economic impacts of COVID-19: 

Projects already in process under authorization by another federal housing program. Projects for developing, repairing or operating affordable rental housing with certain requirements for tenant income and affordability.

Expanded Presumptive Eligibility Programs

Previous ProgramsExpanded ProgramsIn January 2022, Treasury designated two U.S.
Department of Housing and Urban Development programs that would allow recipients to be
presumptive eligible.
Housing Trust Fund
HOME Investment Partnerships Program        Treasury allows housing projects to be presumptively eligible if they meet existing requirements for the following federal programs.  
Individuals
Project-Based Rental Assistance 
Section 811 – Supportive Housing for Persons with Disabilities Program 

Developers
Low-Income Housing Tax Credit
National Housing Trust Fund
Public Housing Capital Fund
Section 202 – Supportive Housing for the Elderly Program 

State and Local Governments
HOME Investment Partnerships Program
Multifamily Preservation and Revitalization Program 

Tribal Governments
Indian Housing Block Grant Program 
Indian Community Development Block Grant Program 
Bureau of Indian Affairs Housing Improvement Program

Option 2: Allow State and Local Fiscal Recovery Funds to be used if the housing units funded serve households at or below 65% of the average median income for at least 20 years.

Blended Funding

Blended funding is the merging of funds from different sources for the delivery and increased impact of services. States can blend fiscal recovery funds with other resources as long as projects are eligible under all programs from which funds are drawn. Blending State and Local Fiscal Recovery Funds with other government funding must adhere to all federal requirements for cost-sharing/matching.

Funding new and substantial affordable housing. Funds can be used to finish construction projects by bridging gaps in financing. It can also be used to expedite the construction or transformation of affordable housing projects.

Pre-Existing Federal ProgramsState and Local Fiscal Recovery Funding OpportunitiesLow Income Housing Tax CreditFour to nine percent can be allocated for new construction or preservation of affordable housing.Federal Housing Administration Multifamily Mortgage InsuranceFunding can be provided to cover the cost of the project.HOME Investment and Housing Trust FundParticipating jurisdictions may use recovery funds to meet affordable housing production and repair goals.HOME Investment Partnerships American Rescue Plan ProgramFunding can be blended with other American Rescue Plan Act resources to support the acquisition or construction of rental houses for eligible populations.Project-Based VouchersFunding can be blended with local public housing authorities to be used to build or rehabilitate affordable housing units.Recapitalization of Public Housing through a Rental Assistance DemonstrationFunding can support transactions to add new affordable housing.Community Development Block Grants and Section 108 Loan Guarantee ProgramFunding can be blended to invest an annual installment to support conversion or reconstruction projects; also, can be used to make eligible affordable housing investments.

Existing properties that will be transformed into affordable housing

Recipients can acquire market-rate rental properties, hotels, motels or properties that will be converted to affordable housing. Other allowable uses include acquiring or preserving existing publicly-supported affordable housing or financing retrofits to and weatherizing of existing properties to improve energy efficiency.

Opportunities for Blended Funding with Federal Housing Administration Multifamily Mortgage InsuranceMortgage insurance for purchase or refinancing of existing multifamily rental housing under
Section 223(f) of the National Housing ActThe fiscal recovery fund provides support to finance or refinance a property acquisition.Risk Share Section 542 (c )The fiscal recovery fund allows a risk share loan for the acquisition or refinance of affordable properties.

Opportunities for Blended Funding for Vacant or Abandoned Properties in Disproportionately Impacted CommunitiesSection 108 of the Loan Guarantee Program and
HOME Investment or Housing Trust FundFunding can be used for the eligible housing portion for mixed-use development.

Whether the project is entirely or partially funded through the State and Local Fiscal Recovery Fund, the government must report the obligating of funds to the Treasury by Dec. 31, 2024, and must expend funds by Dec. 31, 2026.

State Examples Presumptive eligibility was expanded to respond to questions and concerns about allocation of fiscal recovery funds. The Treasury established four core requirements for presumptive eligibility:

Resident income restrictions.Tenant protections.Housing quality standards.Affordability period for assisted units.

The Illinois The Housing Development Authority allocated $75 million in recovery funds to provide gap financing and underwriting for affordable housing developments. Grant funding will support 1,023 units in 19 affordable developments.

The Rhode Island Rebounds Production Fund Program is using $15 million for the production of new affordable housing and provides grants for households with incomes at or below 80% of average median income in the state.

Additional examples of states using the State and Local Fiscal Recovery Funds for affordable housing as reported from the Treasury can be found here.

Additional Clarification

About $350 billion was dedicated to developing, repairing and operating affordable housing units under the State and Local Fiscal Recovery Fund. As of March 31, 2022 Treasury data showed that over 600 state and local governments budgeted about $12.9 billion in funds toward affordable housing. The initiatives focused on lower housing-related costs and creating and preserving affordable housing developments.

The Treasury has clarified that states can reinvest the money from affordable housing long-term loans once the revenue is received. The income from reinvesting in affordable housing does not need to be repaid to the Treasury.

Recipients have the flexibility to design affordable housing projects if they are related or proportional to addressing the negative impact of COVID-19. Additional information is available in the Treasury’s Frequently Asked Questions.

Other Resources

Coronavirus State and Local Fiscal Recovery Funds Website:

https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds

Affordable Housing How-To Guide:

https://home.treasury.gov/system/files/136/Affordable-Housing-How-To-Guide.pdf

Compliance & Reporting Guidance:

https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf

Final Rule Frequently Asked Questions:

https://home.treasury.gov/system/files/136/SLFRF-Final-Rule-FAQ.pdf

Email: [email protected]

By: Valerie Newberg 

The Congressional Budget Office released its annual Long-Term Budget Outlook in July. The Long-Term Budget Outlook is a 30-year projection of different economic factors like government spending and revenues. The outlook is used as a tool for policymakers to evaluate the impact of proposed legislation against baseline economic data, such as the gross domestic product (GDP), which measures the total output of the United States economy and provides insight into to economic growth. This year’s report represents a continuation of recent forecasts, predicting a rise in mandatory federal spending on entitlement programs such as Medicare and Medicaid, increased interest costs on the deficit and a historically high debt to GDP ratio. Regardless of how the federal government approaches the unprecedented conditions predicted, states will have to grapple with changes in funding and fiscal practices to ensure their budgets remain balanced. 

Here are three takeaways for state leaders from this year’s report: 

The economy remains volatile, showing signs of slowing. 

There are four main projections calculated in the outlook: the deficit, debt, spending and revenues. While states are trying to predict the forecast and how to prepare, all four factors point to stormy weather and rainy days with potential long-term economic difficulties: 

Under current fiscal practices, the budget deficit is expected to climb from 2.3% of the GDP to 3.9% at the end of 2052. As the deficit continues to grow, the national debt will climb from its projected 2022 total of 98% of the GDP to 185% in 2052, nearly doubling in size and reaching a historic high in 2031.  Even as the end of federal pandemic relief programs results in a dip in federal spending, the budget will ultimately rise from 23.5% to 30.2% of the GDP by 2052. Increases in spending are driven by mandatory expenditures for programs like Medicare and Social Security, which will gain more dependents and experience higher costs as the U.S. population ages. Additionally, interest on the deficit will contribute to historically high spending. Finally, revenues are projected to spike in 2025 as a result of the expiration of the Tax Cuts and Jobs Act of 2017. The CBO’s analysis makes clear the opportunities and feasibility of reducing the deficit through expenditure and tax-based policies and lays out the growing consequences of inaction. But until changes are made, federal spending will continue to outpace revenues. 

While these projections are focused on national trends and policies, states will not be immune to the effects of economic changes; state policymakers can expect economic uncertainty to impact both federal grants to states and the circumstances around state revenue collection. 

Tax changes in 2025 are expected to temporarily increase federal revenues and will continue to impact state budgets and tax codes.  

Scheduled changes to the tax code will have an impact on the national economy and state policies, but this impact will vary across states and income groups. The 2017 Tax Cuts and Jobs Act had disparate effects on state budgets and tax codes, with many states electing to align their tax laws with most or all of the federal tax legislation. Key provisions of the Tax Cuts and Jobs Act that lower taxes for individuals and families are set to automatically expire in 2025, including the expanded Child Tax Credit and the State and Local Tax Deduction. The State and Local Tax Deduction impacts high-income taxpayers in states such as California, New Jersey and New York most aggressively because the $10,000 cap on deductions generally prevents those who pay the most in state and local taxes from deducting their entire liability from their federal taxes. Lawmakers in such states have sought solutions to ease this burden and prevent the loss of high-income residents.  

The future of these provisions is unclear, but the Congressional Budget Office’s analysis of the tax plan shows a nearly $1.5 trillion increase in the deficit over the next 10 years. As such, federal policymakers may look to more wide-sweeping changes to tax codes that would further impact state policies. 

Congress may look to cut discretionary spending for state grants and other projects to decrease outlays.  

The Congressional Budget Office predicts that continued levels of discretionary spending between an average of 6.2% and 7% of the GDP will contribute substantially to federal debt levels. This debt, held by the public, leaves the economy at an increased risk of experiencing a fiscal crisis that would disrupt global financial stability. With adjustments in the largest mandatory spending programs such as Medicare and Social Security requiring a 60-person majority to pass the Senate and 74 percent of Americans saying benefits should not be reduced, it is more likely that funding for discretionary spending programs and grants to states would be reduced to contain expenditure levels.  

Since the federal government provides an average of one-third of state revenues, states are especially vulnerable to disruptions due to changes in federal discretionary spending for programs like Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Head Start, the Low Income Home Energy Assistance Program (LIHEAP), law enforcement training and development assistance, and the Community Block Development Grant. States rely on these programs to provide for their most vulnerable citizens and policymakers will need to remain informed of their options for sustaining them when faced with reductions in federal funding.  

With President Biden signing into law the Inflation Reduction Act, which will reduce the deficit by over $300 million, fiscal consolidation through reduced spending and increased taxes is clearly a top priority for lawmakers in Washington. States should expect to see further action taken, and by remaining educated on the impacts of the federal budget and the CBO’s Long-Term Budget Outlook on their states’ circumstances, leaders can prepare to effectively tackle the economic issues that impact the everyday lives of their constituents. 

By Rachel Dietert and Ben Reynolds

The American Rescue Plan Act of 2021 includes $350 billion in new funding for state, local, territorial and tribal governments through the Coronavirus State and Local Fiscal Recovery Fund. Within that fund, $195 billion is distributed to state governments and Washington, D.C. While there are some restrictions on the use of funds, states have considerable discretion. CSG has collected allocation data from state actions, enacted legislation and mandatory State Recovery Plan Performance Reports. The Council of State Governments ARPA Utilization Database includes information on these allocations through December of 2021. Data is organized into 27 “policy areas” based on funding categories. Further subcategories are provided to include more detail on the funding.

CSG is producing a series of articles focused on how states are using the State Fiscal Recovery Fund. The first article can be found here.

This second article examines the state policy areas receiving the greatest investment.

Revenue and Taxation ($21.1 billion) and Management and Administration ($19.7 billion) are the top two policy areas across the country, receiving substantially more funding than others. Revenue and Taxation was the top policy area as states elected to use funds to replace revenue lost because of the pandemic. Revenue replacement has helped states address a decrease in state tax revenue, which from April through June 2020 fell 25% compared to the same quarter of 2019 (Pew). Management and Administration investments are another way states are addressing the impacts of the pandemic. Examples of administration costs include efforts to ensure program sustainability by increasing staff or contracting with consultants.

Eleven states allocated the most funding toward Unemployment. Many states made substantial deposits into unemployment insurance funds. Arizona, for example, allocated $758.8 million into its Unemployment Insurance Trust Fund.

Revenue and Taxation was the second most funded policy area. Most states used their funding toward revenue replacement. California transferred $9.2 billion to address its revenue loss due to the pandemic.

The top policy area in four states was Broadband, and another four states top policy area was Infrastructure. New Hampshire allocated $659,734 to fund its Broadband Connectivity Program while North Dakota is using $150 million to fund natural gas pipeline infrastructure grants to develop a high-pressure transmission pipeline to transport natural gas to eastern North Dakota.

Alaska, Alabama, and Oregon invested heavily in Justice and Public Safety, more than any other area. Alaska budgeted $24.7 million to fund its Wildlife State Troopers and $28.8 million for its Office of Public Advocacy. Alabama appropriated $400 million to its Department of Corrections for its Capital Improvement Fund. Oregon used $37.3 million to address deferred maintenance and administrative services for its Department of Corrections.  

Utah has allocated the most funds for Education. The stateused $15 million to offer one-year tuition and fee scholarships to individuals who deferred or interrupted enrollment because of the pandemic.

Idaho was the only state in which the highest amount of funds was for COVID-19 response, appropriating $50 million.

The top area for spending in CSG South ($3.2 billion) and CSG West ($11.1 billion) states was Revenue and Taxation. The top policy priority for CSG East states was Management and Administration. For CSG Midwest states, it was Unemployment. All four regions had Unemployment within their top five policy areas. Revenue and Taxation was in the top five in the East, West and South.

States lost a considerable amount of revenue during the pandemic and are using federal funds to make up for it. State governments are also acknowledging how unemployment rates were impacted by the pandemic. Millions of people lost their jobs in the early months of the pandemic. But the unemployment rate had fallen to 4.9% by October 2021.

(Top Policy Area by Number of Programs Funded Graphic Goes Here)

Revenue and Taxation and Management and Administration were the most invested categories and most of those funds have been used for fiscal health recovery. States also used the Coronavirus State and Local Recovery Funds to target certain areas and programs that needed additional resources, but may not have received them in “normal” years.

Among subcategories, State Fiscal Recovery Funds were invested most heavily in Health and Human Services programs (239), followed by Economic and Community Development (155) and Justice and Public Safety (134).

Of the 239 Health and Human Services programs funded, 56 involve public health. States vary in their public health needs and the programs reflect that. For example, Arkansas budgeted $10.5 million to increase hospital bed capacity while Maine allocated $102,986 to establish a program to offer free well water treatment for low-income residents. Other program areas funded in Health and Human Services include:

Mental Health (26)Behavioral Health (22)Nutritional Stability (19)Long-term Care Facilities (10)

Another top program priority for states was Economic and Community Development. Economic development initiatives received the most state funds. Indiana allocated $500 million for its Regional Economic Acceleration and Development Initiative, while New Jersey is spending $15 million to develop its World Cup and Meadowlands Complex. Ensuring small businesses survived the pandemic was another high priority for states. North Carolina used $500 million to establish the Businesses Recovery Grant program to aid businesses that suffered damage due to the pandemic. Wisconsin used $46.7 million for grants to assist with costs businesses incurred for health and safety improvements. Other programs funded under Economic and Community Development include:

Tourism (30)Community Development (13)Parks and Recreation (4)Diversity, Equity, and Inclusion (2)

The third most funded policy area by programs was Justice and Public Safety. The top program under this policy area was Emergency Management. Florida used $1 million to fund its Emergency Preparedness and Response Fund, while Utah used $6.9 million to update its Department of Corrections communication equipment and enhance its interoperability. Other programs funded under Justice and Public Safety include:

Violence Prevention (10)Corrections (10)Crime Victim Services (8)Law Enforcement (8)

Through 2021, states allocated their ARPA funds for immediate needs. States faced revenue shortfalls and invested funding for Covid testing and other health care and health system improvements. Since states have until 2024 to allocate their APRA funds and many immediate needs for funds have been accomplished, states are going to be more flexible and creative with their ARPA funding. States will use this remaining funding to address a variety of needs.

By Blair Lozier

In 2019 — the latest year for which national statistics are available — state and local governments collected $52 billion in motor fuel taxes. State laws and regulations often mandate that portions of this revenue will be allocated to support specific programs. From 2015-2019, most of the motor fuel tax revenue was used for state administered highways, local roads and streets and mass transit. The most popular approach, taken by 20 states, is to direct funds to transit and active transportation (pedestrian and bicycle projects). The second most common approach is to allocate funds to law enforcement and safety services. Less frequently, funds are directed to education, tourism and environmental programs.

Fuel taxes are assessed in a variety of ways. As of 2019, 22 states structured their tax systems around a variable-rate method — the tax rate fluctuates based on wholesale gas prices, the price at the pump, the inflation rate or other factors. Ten states — California, Colorado, Florida, Illinois, Maryland, North Carolina, Rhode Island, Utah and Virginia — and Washington, D.C. have motor fuel tax systems that adjust for inflation or the Consumer Price Index (CPI). Ten other states — Connecticut, Kentucky, Maryland, Nebraska, New Jersey, New York, Pennsylvania, Utah, Vermont and West Virginia — use the price of gasoline to determine the tax rate.

Last week, President Biden urged Congress to suspend the federal gas tax in response to sustained high prices. Biden also called for states to consider suspending their taxes.

CSG has conducted a scan of actions states are implementing or considering in order to provide relief from high gas prices, including compensation programs and gas tax suspensions — often referred to as motor fuel tax holidays.

Option 1: Direct Compensation 

Delaware has enacted a compensation program to provide funds directly to consumers.

State Motor Fuel Tax Compensation Programs

State	Program Summary
Delaware	The enacted 2022 Delaware Relief Rebate Program is a one-time payment of $300 per Delaware resident taxpayer.

Option 2: Motor Fuel Tax Holiday

Many states have proposed or enacted a motor fuel tax holiday. A holiday is a period where taxes are suspended.

Enacted State Motor Fuel Tax Holidays

State	Description of Fuel Tax Holiday
Colorado	Lawmakers enacted a delay of the increase in usage fees and temporarily reduced prices.
Connecticut	The suspension of motor fuel taxes is in place from April 1 to June 30.
Florida	The motor fuel tax will be suspended from Oct. 1 to Oct. 31.
Georgia	The governor originally suspended the motor fuel tax from March 18 to May 31. The suspension has been extended until July 14.
Maryland	The state legislature passed a 30-day period beginning March 18, 2022. Legislators are working on a proposal for another 90-day suspension.
New York	The state fuel tax has been reduced and counties will cap the amount of tax that can be collected per transaction.

Proposed State Motor Fuel Tax Relief

State	Relief Type	Description of Proposed Relief
Alaska	Motor Fuel Tax Holiday	Suspending the motor fuel tax until June 2023
California	Compensation Program	Implementing a $400 rebate per registered car for up to two cars for every household Implementing free public transit for three months
Idaho	Motor Fuel Tax Holiday	Implementing a six-month tax holiday
Illinois	Motor Fuel Tax Reduction	Reducing the motor fuel tax beginning July 1
Michigan	Motor Fuel Tax Holiday	Suspending the motor fuel tax
Minnesota	Motor Fuel Tax Holiday	Reducing the motor fuel tax cut from Memorial Day to Labor Day
Mississippi	Motor Fuel Tax Holiday	Suspending the motor fuel tax for six months
Missouri	Motor Fuel Tax Holiday	Suspending the motor fuel tax for six months
New Jersey	Compensation Program	Implementing a $250 tax rebate for individuals filing single and $500 tax rebate for married-filing couples Implementing free public transit for three months
Rhode Island	Motor Fuel Tax Holiday	Suspending the motor fuel tax until the end of calendar year 2022
Pennsylvania	Motor Fuel Tax Reduction	Reducing the motor fuel tax by 33%
Virginia	Motor Fuel Tax Holiday/Reduction	Implementing a three-step relief program: Step 1: Eliminate the statewide motor fuel tax from May 1 to July 31 Step 2: Reduce the statewide motor fuel tax by 50% from August 1 to August 31 Step 3: Reduce the statewide motor fuel tax by 25% from Sept. 1 to Sept. 30

More Information:

Institute on Taxation and Economic Policy

Reason Foundation

The Urban Institute

This week, learn more about recent developments on how states are responding to inflation, the transparency of pandemic funds and state budgets.

To view the CSG fiscal policy website, visit web.csg.org/recovery.

CSG Resources: 

CSG has an update on how the federal and state governments are responding to inflation and its impact on people across the U.S.: States Respond to Inflationary Pressures

News State Policymakers Can Use:

The National Association of State Budget Directors maintains an up-to-date look at state budgets for the next fiscal year, which can be accessed here: Fiscal Year 23 Proposed and Enacted Budgets. Most states were scheduled to pass a budget this spring, however, the uncertainty of the persisting COVID-19 pandemic altered the usual schedule. Several states passed supplemental budgets or budgeted for only one year.The Federal Reserve Bank of Chicago published a report on states that experienced population gains and losses during the pandemic.Bloomberg reported last week on the substantial increases in the cost of 30-year mortgages and what it means for home buyers and the housing market.

Federal Policy Updates for State Leaders:

American Rescue Plan Act

The Department of the Treasury released the updated Project and Expenditure Report User Guide and the Recovery Plan Reporting User Guide to assist states in preparing reports due on July 31.The Pandemic Resource Accountability Committee released an interactive State and Local Fiscal Recovery Fund Dashboard. Twenty-one inspectors general from various federal agencies provide this information to support transparency in government spending and use data-driven technology to detect fraud, waste, abuse and mismanagement of pandemic relief funds. The dashboard provides an interactive and searchable report of the $350 billion fund, with information from expenditure reports submitted to the Treasury from March through December 2021. Information includes how the funds have been used to improve public health, offset negative economic impacts, strengthen government services, support disproportionately impacted communities and provide premium pay for certain professions.Registration is open to attend the White House Summit on the American Rescue Plan and Workforce with Vice President Harris on July 13 at 11 a.m. ET. The summit will feature state and local leaders discussing investments from the act, featuring infrastructure and apprenticeships, the public health workforce and expanding access to training for underserved populations.

Congress

The Appropriation Committee of the House of Representatives completed work on spending bills for fiscal year 2023. The 12 bills now go to the full House for consideration, although the timing remains uncertain. The Senate Appropriations Committee plans to review bills this month. However, before significant progress on appropriations bills can be made, congressional appropriators will need a bipartisan agreement on discretionary spending targets for fiscal year 2023.

Transportation

The U.S. Department of Transportation announced a proposed rule that would “require state departments of transportation and metropolitan planning organizations to establish declining carbon dioxide targets and to establish a method for the measurement and reporting of greenhouse gas emissions associated with transportation under Title 23 of the United States Code. The proposed rule would not mandate the level of the targets.”The Federal Aviation Administration announced the awarding of nearly $1 billion in funds from the Infrastructure Investment and Jobs Act to 85 airports across the U.S.Applications for the Reconnecting Communities and Thriving Communities competitive grant pilot programs are due on Oct. 13, 2022. A webinar for stakeholders to learn about the application opportunity will be held on July 14 at noon ET.

Veterans

The Veterans Administration Office of Inspector General released a report showing a substantial staffing shortage among providers across the U.S. For example, “Facilities reported 2,622 severe occupational staffing shortages across 285 occupations in fiscal year 2022.”

This week’s newsletter includes recent developments that every state leader needs to know about motor fuel taxes, talent pipeline development and grants for bridge projects.

To view the CSG fiscal policy website, visit: web.csg.org/recovery.

CSG Resources: 

CSG conducted a scan of actions states are implementing or considering in order to provide relief from high gas prices. Learn more about the options for states in our article, “State Approaches to Motor Fuel Taxes.”

News, Updates and Resources

INFRASTRUCTURE INVESTMENT AND JOBS ACT

General

Administration announces initiative to fill high-quality jobs

The Talent Pipeline Challenge is a call to action for employers, education and training providers, state, local, Tribal and territorial governments and philanthropic organizations to make tangible commitments to support equitable workforce development in three critical infrastructure sectors. These sectors are broadband, construction and “electrification” (e.g., electric vehicle charging infrastructure and battery manufacturing). The Talent Pipeline Challenge also encourages recipients to use current funding from the American Rescue Plan Act, Infrastructure Investment and Jobs Act and State Workforce Innovation and Opportunity Act for workforce development efforts in these sectors.

Environment

Environmental Protection Agency announces $375 million investment in recycling

The agency issued a Request for Information for three new recycling, reuse and waste prevention programs:

Solid Waste Infrastructure for Recycling Grant Program: $55 million per year for fiscal years 2022-2026, plus $2.5 million in fiscal year 2022 for implementation. Comments are due by July 25.Recycling Education and Outreach Grant Program: $15 million per year for fiscal years 2022-2026 to improve the effectiveness of community recycling programs through public education and outreach. Comments are due by July 25.Battery Collection Best Practices and Voluntary Battery Labeling Guidelines: $10 million to develop battery recycling best practices and $15 million for voluntary battery labeling guidelines, available through Sept. 30, 2026. Comments are due by July 11.

Guidance and funding for Gulf Hypoxia Action Plan

The Environmental Protection Agency is providing $60 million for nutrient reduction activities for 12 states in the Gulf of Mexico region and the Mississippi River/Atchafalaya River Basin to improve water quality. Additional information can be found here.

Environmental Protection Agency invites states and territories to apply for $1 billion in funding to address contaminants in drinking water

The Emerging Contaminants in Small or Disadvantaged Communities Grant will be awarded non-competitively to states, territories and tribes focused on assisting small or disadvantaged communities to confront pollution. The agency will contact states directly to inform them of the program and application process. Respondents must submit a letter of intent to [email protected] by Aug. 15.

Interior

$9 million dedicated to sagebrush ecosystem projects in 2022

The Fish and Wildlife Service will invest $50 million to conserve the sagebrush ecosystem over five fiscal years, with $9 million dedicated in 2022. Funding for 40 projects in Idaho and seven other Western[JS1]  states will combat invasive grasses and wildfire, reduce encroaching conifers, safeguard water resources and promote sustainability.

Federal-state critical minerals mapping partnership

The infrastructure act provides $64 million to support research in critical minerals, energy and supply chain issues. The U.S. Geological Survey will partner with the Association of American State Geologists and state geological surveys in 30 states for geoscience data collection, mapping, data preservation and scientific interpretation of areas with potential for critical minerals for the Earth Mapping Resources Initiative.

Department of the Interior allocates $103 million for wildfire mitigation and resilience

The department announced an interagency program to support wildland firefighter health and well-being and reduce wildfire risk. The funding will support fuels management ($80.9 million), burned area rehabilitation ($19.4 million) and climate-related research ($3.1 million)

Bureau of Reclamation announces $25.5 million for water efficiency projects in eight Western states

The WaterSMART Water and Energy Efficiency Grants will fund 14 water efficiency and drought resilience projects in California, Colorado, Idaho, Oklahoma, Texas, Utah, Washington and Wyoming.

Transportation

Federal Highway Administration proposes regulations for the National Electric Vehicle Infrastructure program

The proposed standards and regulations would apply to the installation, operation and maintenance of electric vehicles. Program information can be found here.

Federal Highway Administration invites applications for Bridge Investment Program

The Bridge Investment Program is open for three competitive funding opportunities. In fiscal year 2022, $2.36 billion is available for bridge projects, including $20 million for planning. A webinar, questions and answers document and fact sheet are available. Each project application has separate requirements and due dates:

Planning projects: July 25Bridge projects over $100 million: Aug. 9Bridge projects less than $100 million: Sept. 8

Federal Railroad Administration requests information regarding blocked crossing portal

The infrastructure act requires the Federal Railroad Administration to maintain a portal to receive information on blocked highway-rail grade crossings. Comment on the Request for Information to improve the effectiveness of the portal are due by Aug. 16.

Department of Transportation announces $8.4 million to connect people to critical services

The Innovative Coordinated Access & Mobility program awarded funds for projects in 16 states to improve public transportation for underserved groups, with a focus on health and wellness.

Federal Highway Administration revises Fiscal Year 2022 supplementary tables for federal aid for highways

The Revised Supplemental Tables for 10 transportation programs cancel the previous notice dated Feb. 23, 2022 and provide updates on fiscal year 2022 allocations showing funding breakdowns, set-asides and limiting amounts by program.

Federal Highway Administration publishes updated questions and answers document to provide clarity on local hiring preferences for construction jobs

Federal Railroad Administration publishes infrastructure act amendments to rail programs

The document details amendments to Subtitle V of Title 49 U.S.C.

Federal Railroad Administration publishes fact sheets on grant programs

The Interstate Rail Compacts Grant Program provides financial assistance for implementing interstate rail compacts to support multi-state and regional intercity passenger rail services. The Railroad Crossing Elimination Grant Program funds highway-rail or pathway-rail grade crossing projects to improve the safety and mobility of people and goods.

Independent Agencies

Government Accountability Office recommends strategy for Federal Communications Commission

The report released in May recommends a National Broadband Strategy. The strategy is designed to give universal access in the U.S.

Federal Communications Commission to establish transparency for broadband program

The infrastructure act mandates prices and subscription rates for all participants in the broadband program. The commission is establishing rules for households enrolled in the Affordable Connectivity Program. Comments about this proposal are due 30 days after being published by the Federal Register.

Federal Communications Commission requests comment on proposal to provide broadband service to rural areas

The proposal seeks to achieve widespread deployment of 100/20 megabit per second broadband service throughout rural areas served by carriers receiving Alternative Connect America Model support. Comments are due on or before July 18 and reply comments are due on or before Aug. 1.

CORONAVIRUS

Legislative Update

The Keep Kids Fed Act reaches bipartisan agreement to extend Food and Nutrition Service Waiver authority through September[JS2] 

House Resolution 8150 is designed to extend flexibility for the Food and Nutrition Service provided by the Families First Coronavirus Response Act. The resolution requires a state to submit a plan for normal operating procedures when the waiver ends. More information can be found here.

Agricultural

Pilot program established to improve the health and safety of H-2A Visa workers

The U.S. Department of Agriculture intends to dedicate $65 million to provide support to workers and implement robust healthy and safe environments for all employees.

Women, Infants, and Children recipients may receive maximum monthly allowance in certain states

Recipients of Food Packages I and II may be eligible for maximum monthly allowances from the Food and Nutrition Service.

Food and Nutrition Service updates list for Women, Infants, and Children formula discretion waiver

The service updated the flexibility for recipients to apply for the imported formula enforcement discretion waiver.

Education

Department of Education publishes Elementary and Secondary School Emergency Relief Fund maintenance of equity materials

These materials include a slide presentation, transcript and recording regarding local educational agency-level reporting requirements.

Department of Education publishes fact sheet on sustaining investments in teachers beyond American Rescue Plan Act funding

The fact sheet recommends providing teachers with a livable wage, investing in a talented teacher pipeline, supporting teachers in earning certifications, helping teachers afford getting into the profession, providing teachers with the resources they need to succeed and creating opportunities for advancement.

Department of Education provides updates on programs

Elementary and Secondary School Emergency Relief FundsState and Local Educational Agency School District PlansMaintenance of Effort Waiver Request Data

Health

COVID-19 Public Health Emergency assumed to end in July 2023

The Congressional Budget Office baseline projections expect the health emergency to be lifted in July of 2023. The Secretary of the Department of Health and Human Services controls the actions that could potentially lift the emergency earlier or cause a delay. The Congressional Budget Office relies on the department for these projections.

Housing

The Department of Housing and Urban Development provides application and eligibility requirements for the Coronavirus Aid, Relief, and Economic Security Act Mainstream Voucher

New funding opportunities for mainstream vouchers are available to public housing agencies. These agencies can apply for vouchers for administrative fees.

Human Services

Low-Income Household Water Assistance Program updates dashboard

The Administration for Children and Families updated the program dashboard to reflect Tribal and territory data.

Outline made for Emergency and Disaster Flexibilities for low-income household water assistance programs

The Administration for Children and Families has outlined the funds for emergency and disaster situations for low-income households.

Labor

Unemployment Insurance programs issue $18 million in American Rescue Plan Act funds

Maine, New Mexico, Oklahoma, Oregon, Pennsylvania, Washington and Wisconsin received $18 million from the Department of Labor. The grant contributes to outreach, resources and training to assist in Unemployment Insurance Navigator Program grants.

Department of Labor awards $11.4 million to help make sure that workers have equal access to state unemployment insurance systems

This funding will go to Maryland, Nebraska and South Dakota. The grants will allow states to fund projects that are designed to ensure race, age, ethnicity and other systemic barriers do not prevent those in need from accessing unemployment benefits.

Treasury

The U.S. Department of the Treasury updates State and Local Fiscal Recovery Funds guidance

Updates to the compliance and reporting guidance include:

Compliance and reporting guidance that includes the final rule — these updates apply to the next Project and Expenditure Report and Recovery Plan that certain recipients must submit by July 31Recovery Plan template for Tier 1 recipients

The Treasury publishes State Small Business Credit Initiative application

This document covers user instructions, application documents, definitions and technical assistance recipient information.

The Treasury publishes periodic report on Municipal Liquidity Facility, including a transaction specific spreadsheet

The Treasury publishes webinar on Homeowner Assistance Fund quarterly report

The fund was created to prevent mortgage delinquencies and defaults, forecloses, loss of utilities or home energy services and displacement. Those who receive awards must submit quarterly reports.

Treasury publishes Best Practices Guide for Capital Projects Fund

The guide also provides an overview of the grant and program plan. This document does not pertain to Tribal governments.

Independent Agencies

New Emergency Connectivity funding announced for schools and libraries

The Federal Communications Commission will issue awards for a third round of school and library broadband funding. The funding is designed to support access to broadband for students all over the U.S. The Emergency Connectivity Fund is intended to close the homework gap for students.

National Endowment for the Arts seeks comment on proposed information collection

The National Endowment for the Arts requests comments regarding its plan to survey state arts agencies on the impact of American Rescue Plan Act funding on grantees. Comments are due by Aug. 16.

By Ishara Nanayakkara

Multiple state, local and tribal governments have pursued litigation against four U.S. pharmaceutical companies alleging corporate responsibility for the severity of the opioid epidemic. In July of 2021, those corporations agreed to pay a total of $26 billion to settle thousands of individual civil lawsuits. This funding is being used to address the crisis in various ways such as revamping old programs and establishing new ones. Many states have also created committees to make recommendations on how these funds should be allocated. A variety of research-based recommendations are available for policymakers to consider, including:

Distributing Naloxone

The U.S. Department of Health and Human Services has recognized Naloxone as one of the most effective strategies for addressing overdoses. Naloxone is a medicine that can swiftly reverse an overdose when administered into a muscle or given intranasally. But it must be readily available to individuals and a standard part of first responder equipment. The demand for Naloxone is rapidly rising but access is still not widespread. This may largely be due to the high cost of the product and the stigma surrounding opioid use. States are taking action to increase access to Naloxone through Opioid Education and Naloxone Distribution programs. As of 2020, at least 23 states had issued standing orders for local pharmacies, allowing individuals to purchase it without a prescription.

Detecting Fentanyl

Fentanyl is a highly addictive synthetic opioid that is 50-100 times stronger than morphine. This substance is sometimes laced into other drugs, which can lead to overdose and death for individuals that unknowingly consume it. Researchers at The Bloomberg School of Public Health at Johns Hopkins University spoke to individuals that use drugs and found that the significant majority were interested in having their drugs checked for fentanyl contamination so that it could be avoided. The researchers tested three drug-checking technologies—BTNX testing strips, the TruNarc Raman spectroscopy machine and the Bruker Alpha machine—for effectiveness. Fentanyl test strips proved to be safe and easy to use. A one-dollar strip works as a pregnancy test does: a test strip is dipped into a cup containing a few grains of the substance dissolved in water. These tests are highly accurate and can detect even tiny amounts of fentanyl—less than one microgram. These tests can also detect other harmful substances, such as acetyl fentanyl, furanyl and carfentanil. Widespread availability and use of test strips could help prevent accidental overdoses due to fentanyl contamination.

Prevention

The causes of opioid addiction varies among individuals, but there are common risk factors such as financial and housing instability, untreated mental health challenges and chronic physical pain. There are multiple policies and programs that can address these risk factors, ranging from providing housing assistance to creating programs to help individuals become involved in the community.

Educating young people is one well researched, evidence-based policy to prevent substance use and abuse. There are several long-term programs focused on children in school, such as Fast Track and the LifeSkills Training Program. These initiatives vary in structure, with some focusing on drug education and others on shaping overall behavior. These programs can start as early as kindergarten and have been found to effectively reduce drug and alcohol use and can even modify aggressive behaviors.

As mental health issues such as depression and anxiety are commonly correlated with substance abuse, programs that address an individual’s mental health can also help prevent drug use. Programs that “help people have better outlooks” have been found to increase the sense of purpose and well-being among people who are vulnerable to depression. In addition to providing employment assistance, increasing volunteering opportunities and access to community activities—such as art projects and library visits—reduces isolation and helps individuals remain occupied, thereby improving their mental health.

State, local and tribal governments can also direct funds toward ensuring racial equity as the rate of overdoses and death have been increasing in Black populations. Black individuals make up 5% of drug users, but they constitute 33% of those in state prisons for drug offenses. Increasing equitable access to treatments including medication can help address the issue.

Resources for Governments

Rural Health Information HubSubstance Abuse and Mental Health Services AdministrationThe Bloomberg School of Public Health – Johns Hopkins UniversityYouth.gov Resource on Youth Programs for Substance Abuse PreventionRAND Resource on Effectively Allocating Opioid Settlement Funds