Dear Tribal Leader,

Today, the U.S. Department of the Treasury (Treasury) published a new interim final rule for the State and Local Fiscal Recovery Funds (SLFRF) program. This interim final rule (Obligation IFR) provides additional flexibility and clarity for recipients regarding the definition of “obligation” and associated guidance. The Obligation IFR clarifies the application of the statutory obligation deadline of December 31, 2024, to subrecipients and contractors, and provides guidance on the circumstances under which contracts and subawards entered into prior to the obligation deadline may be amended or replaced. It does not alter the existing obligation and expenditure deadlines or eligible use categories, including how recipients may use SLFRF funds under the revenue loss eligible use category. Recipients must continue to obligate funds by December 31, 2024, and expend funds by December 31, 2026 (other than in the case of SLFRF funds used for Surface Transportation projects or Title I projects, which must be expended by September 30, 2026).

To support SLFRF recipients in their understanding of the Obligation IFR, on November 16th, Treasury will host a webinar. During the two sessions listed below, Treasury will provide an overview of the new Obligation IFR, including explaining the amended definition of “obligation” and highlighting key examples of how related guidance and clarifications apply to implementation of SLFRF funds. Recipients will have the opportunity to submit questions in advance for the Q&A portion of the webinar. Recipients can follow along with the Obligation IFR Quick Reference Guide. Treasury is also hosting a Tribal consultation on the Obligation IFR on November 29, 2023. The Dear Tribal Leader letter and information on how to register may be found below.

Sign Up for the Upcoming Webinar

• Morning Session: November 16^th at 10:00 AM ET
• Afternoon Session: November 16^th at 3:00 PM ET

Tribal Consultation

Wednesday, November 29, 2023, 2-5pm ET – Treasury is hosting a Tribal Consultation on the Obligation IFR.  You may find the Dear Tribal Leader Letter here.

You may register for the consultation here.

Treasury is accepting written comments received by December 22, 2023, 11:59 p.m. Alaska Time. Submit written comments at tribal.consult@treasury.gov.

For general information about the program, please see the State and Local Fiscal Recovery Funds website. For details regarding the eligible use categories under the SLFRF program, please see the following resources:

• 2022 Final Rule
• 2023 Interim Final Rule
• Overview of the 2022 Final Rule
• Overview of the 2023 Interim Final Rule
• Recipient Compliance and Reporting Responsibilities
• Self-Service Resources

Treasury looks forward to working with you to ensure the continued success of the SLFRF program.

Fatima Abbas
Director
Office of Tribal and Native Affairs
U.S. Department of the Treasury