There is news to share on the American Rescue Plan (ARP) State and Local Fiscal Recovery Funds (SLFRF) front. As you may be aware, the last iteration of SLFRF Project and Expenditure Reporting Guide said that recipient governments had to make a one-time, irrevocable election to take the standard allowance on their April 30th filing.
In the July update of the SLFRF Project and Expenditure Reporting Guide—version 3.1—Treasury announced it will allow recipient governments to change their election in the next reporting period if they choose. For example, if a recipient government did not elect to take the standard allowance on the April 30th, 2022 report and wants to take it now, a recipient government can make a change on their next filing.
The SLFRF Project and Expenditure Reporting Guide (p.42) states “if a recipient previously elected to calculate revenue loss or elected the standard allowance but would like to update that election, Treasury’s Portal will allow recipients to supersede their prior election.”
Many states and local units across the country have been pushing Treasury to make this update, and we are happy to report the good news.
John LaMacchia is the League’s director of state & federal affairs. He can be reached at email@example.com or 517-908-0303.