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GUIDANCE FOR THE LOCAL ASSISTANCE AND TRIBAL CONSISTENCY FUND

U.S. Department of the Treasury 

Updated September 2023

INTRODUCTION

The U.S. Department of the Treasury (Treasury) is updating this guidance issued in July 2022 

regarding the Local Assistance and Tribal Consistency Fund (LATCF), established by Section 605

of the Social Security Act, as added by Section 9901 of the American Rescue Plan Act of 2021

(American Rescue Plan) and as amended by Section 103 of Division LL of the Consolidated 

Appropriations Act, 2023. This guidance provides a summary of the structure and terms of the 

program, including information about eligible uses of funds, program administration, and other 

requirements under the LATCF program. This guidance may be updated, revised, or modified, and 

Treasury may waive these standards to the extent permitted by law. 

The American Rescue Plan appropriated $2 billion to Treasury across fiscal years 2022 and 2023 to 

provide payments to eligible revenue sharing counties and eligible Tribal governments, and Section 

103 of Division LL of the Consolidated Appropriations Act, 2023 made additional funding 

available from LATCF funds unclaimed by eligible revenue sharing counties after January 31, 

2023 or unobligated Treasury administrative funds, across fiscal years 2023 and 2024 for payments 

to eligible revenue sharing consolidated governments, for use on any governmental purpose except 

for a lobbying activity. Treasury determined the allocation for eligible revenue sharing 

consolidated governments to be approximately $10.5 million in total for fiscal years 2023 and 

2024. Eligible recipients must submit a request for funding in the Treasury Submission Portal to 

receive their payments, and further instructions can be found on the Treasury website. There is no 

pre-approval process for projects funded by the program. Recipients must submit periodic reports 

to Treasury on their expenditures.

The purpose of the LATCF program is to serve as a general revenue enhancement program. Many 

eligible revenue sharing counties, eligible revenue sharing consolidated governments, and eligible 

Tribal governments have historically experienced fluctuations in their revenues, and this program is 

designed, in part, to supplement existing federal programs that augment and stabilize revenues for 

these communities. In providing support to these communities, allocations under this program 

consider the economic conditions of recipients.

Under this program, recipients have broad discretion on uses of funds, similar to the ways in which 

they may use funds generated from their own local revenue sources. Specifically, recipients may 

use these funds on any governmental purpose other than a lobbying activity. Recipients may 

maintain or expand public services – such as health, educational, housing, and public safety 

services – to their communities with these funds. Recipients may also invest in infrastructure –

from roads and bridges to water infrastructure – to facilitate economic development, improve 

health outcomes, or transition their communities to clean energy. Recipients may also invest in 

restoring and bolstering government capacity, such as increasing the size of their government

workforce or investing in improvements in service delivery, like technology infrastructure and data 

analysis resources, that will improve delivery of services to their communities for years to come.
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I. PROGRAMMATIC TERMS OF THE ASSISTANCE

This section describes the programmatic terms of the program, including key information on 

eligible applicants, allocations, eligible and ineligible uses of funds, eligible and ineligible costs, 

and the availability of funds. Recipients are subject to the terms of the award agreement that they 

must enter into in order to receive funding. 

A. ELIGIBLE APPLICANTS

The LATCF, as added by the American Rescue Plan and amended by Section 103 of Division LL 

of the Consolidated Appropriations Act, 2023, identifies eligible revenue sharing counties, eligible 

revenue sharing consolidated governments, and eligible Tribal governments as the governments

eligible to request payment of their allocation of the program and defines eligibility as follows:

• An eligible revenue sharing county is a county, parish, or borough that is independent of 

any other unit of local government; and that, as determined by the Secretary of the 

Treasury, is the principal provider of government services for the area within its 

jurisdiction; and for which, as determined by the Secretary, there is a negative revenue 

impact due to implementation of a Federal program or changes to such program. In 

addition, the District of Columbia, the Commonwealth of Puerto Rico, Guam, and the 

United States Virgin Islands are eligible revenue sharing counties.

• An eligible revenue sharing consolidated government is a county, parish, or borough that 

has been classified by the Bureau of the Census as an active government consolidated with 

another government, and for which, as determined by the Secretary, there is a negative 

revenue impact due to implementation of a Federal program or changes to such a program.

• An eligible Tribal government is the recognized governing body of any Indian or Alaska 

Native tribe, band, nation, pueblo, village, community, component band, or component 

reservation, individually identified (including parenthetically) in the list published most 

recently as of the date of enactment of the American Rescue Plan pursuant to section 104 of 

the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 1531). 

B. ALLOCATIONS 

Section 605(b) provides for a total of $2 billion for Treasury to make payments to eligible revenue 

sharing counties and eligible Tribal governments over fiscal years 2022 and 2023. The provision 

directs the Secretary to reserve $750 million to allocate and pay to eligible revenue sharing 

counties for each of fiscal years 2022 and 2023, taking into account economic conditions of each 

eligible revenue sharing county, using measurements of poverty rates, household income, land 

values, and unemployment rates, as well as other economic indicators, over the 20-year period 

ending with September 30, 2021. Separately, the provision directs the Secretary to reserve $250 

million to allocate and pay to eligible Tribal governments for each of fiscal years 2022 and 2023, 

taking into account economic conditions of each eligible Tribe.

Section 605(g), as added by Section 103 of Division LL of the Consolidated Appropriations Act, 

2023, makes additional funding available from LATCF funds unclaimed by eligible revenue 
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sharing counties after January 31, 2023 or unobligated Treasury administrative funds, to make 

payments to eligible revenue sharing consolidated governments for each of fiscal years 2023 and 

2024 reflecting an amount equal to the amount that the Secretary would have allocated to such 

eligible revenue sharing consolidated governments for fiscal year 2022 if such governments had 

been treated as eligible revenue sharing counties under the original Section 605, using the 

allocation methodology adopted by Treasury for such eligible revenue sharing counties in 2022.

Eligible Tribal governments may log in to the Treasury Submission Portal to review their specific 

allocations under the program. Eligible revenue sharing counties and eligible revenue sharing 

consolidated governments may review their allocations on the Treasury website.

C. ELIGIBLE AND INELIGIBLE USES OF FUNDS

a) Eligible Uses

Section 605(c) provides flexible support for eligible revenue sharing counties, eligible revenue 

sharing consolidated governments, and eligible Tribal governments to meet their jurisdictions’ 

needs. Specifically, the statute directs that recipients may use funds for any governmental purpose 

other than a lobbying activity.

As a general matter, recipients may treat these funds in a similar manner to how they treat funds 

generated from their own local revenue. Programs, services, and capital expenditures that are 

traditionally undertaken by a government are considered to fulfill a “governmental purpose.” For 

Tribal governments, investing in activities undertaken by Tribal enterprises, such as operating or 

capital expenditures for businesses that are owned or controlled by a Tribal government, are 

considered a governmental purpose. However, the LATCF funds may not be used for lobbying 

activities.

A non-exhaustive list of example activities that fulfill a governmental purpose include, but are not 

limited to:

• Provision of health services, educational services, court services, police, fire, emergency 

medical, and other public safety services, utilities or sanitation services, and direct 

assistance to households (including cash assistance);

• Capital expenditures on core facilities and equipment, including in housing and community 

development (e.g., schools, hospitals, childcare facilities, and parks and recreation

facilities), public safety facilities and equipment (e.g., police vehicles), and government 

administration buildings;

• Infrastructure investments, including roads, bridges, water and sewer systems, utility

systems, airports, public transit, and technology infrastructure;

• Long-term economic development activities, including affordable housing development, 

workforce development and other programs to strengthen local communities undergoing 

economic transitions; 

• General government operations, such as general government administration, personnel 

costs, administrative facilities, record keeping, tax assessments, or election administration; 

and 

• Meeting another federal program’s non-federal match or cost-sharing requirements, unless 
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barred by statute or other applicable law (as detailed further in this guidance).

Federal Davis-Bacon Act prevailing wage rate requirements do not apply to projects funded solely 

by the LATCF except for LATCF-funded construction projects undertaken by the District of 

Columbia.1 Further, generally, receipt of LATCF funding does not trigger the National 

Environmental Policy Act (NEPA),

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although recipients must ensure compliance with all 

applicable federal environmental laws. 

b) Ineligible Uses

Recipients may not use federal funds to directly or indirectly pay for any personal service, 

advertisement, telegram, telephone, letter, printed or written matter, or other device, intended or 

designed to influence in any manner a Member of Congress, a jurisdiction, or an official of any 

government, to favor, adopt, or oppose, by vote or otherwise, any legislation, law, ratification, 

policy, or appropriation, whether before or after the introduction of any bill, measure, or resolution 

proposing such legislation, law, ratification, policy, or appropriation. Amounts that are used in 

violation of the lobbying restriction set forth in this guidance may be subject to recoupment.

c) Compliance with financial management, procurement, and conflicts of interest standards

Recipients must expend and account for the LATCF funds in accordance with the financial 

management, procurement, and conflicts of interest standards, laws, policies, and procedures 

applicable to their expenditure of and accounting for their own funds. Treasury will monitor 

violations of this requirement through reporting and other sources. Recipients should also review 

the Buy America domestic content procurement preference requirements, below.

D. ELIGIBLE AND INELIGIBLE COSTS

As a general matter, recipients may use funds to cover costs incurred on any eligible use, including 

costs incurred from March 15, 2021. Recipients may use funds to cover costs of administering the 

LATCF program, including costs of consultants to support effective management and oversight as 

well as compliance with legal, regulatory, and other requirements. 

E. TRANSFERS 

Recipients may transfer to and pool LATCF funds with other entities for projects, provided that 

1 Neither the Davis-Bacon Act nor Davis-Bacon Act related provisions requirements apply to projects funded solely 

with award funds from the LATCF, except for LATCF-funded construction projects undertaken by the District of 

Columbia. The Davis-Bacon Act specifically applies to the District of Columbia when it uses federal funds to enter 

into contracts over $2,000 for the construction, alteration, or repair (including painting and decorating) of public 

buildings or public works. Recipients may be subject to the requirements of the Davis-Bacon Act, when LATCF funds 

are used on a construction project in conjunction with funds from another federal program that requires enforcement of 

the Davis-Bacon Act. Additionally, corollary state prevailing-wage-in-construction laws (commonly known as “baby 

Davis-Bacon Acts”) may apply to projects.

2 Projects supported with payments from LATCF may still be subject to NEPA review if they are also funded by or 

otherwise involve actions from other federal programs or agencies.
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recipients are able to track use of the funds in line with the reporting and compliance requirements 

of the LATCF. As an example, neighboring counties may pool funds in order to invest in a regional 

infrastructure project. Further, recipients may fund a project with both LATCF funds and other 

sources of funding, provided that the project is an eligible use under each source program and 

recipients are compliant with all other related statutory and regulatory requirements and policies.

Transfers under this program do not give rise to subrecipient relationships given the purpose of the 

award. As a result, recipients do not need to comply with subrecipient monitoring or oversight 

requirements outlined in the Uniform Guidance at 2 C.F.R. § 200.331 through § 200.332. Further, 

no subrecipient reporting under 2 C.F.R. Part 170 will be required for this program, although 

recipients meeting the applicable thresholds will still be required to report on executive 

compensation pursuant to 2 C.F.R. Part 170.

F. NON-FEDERAL MATCH OR COST-SHARE REQUIREMENTS

As a general principle, federal funds that constitute revenue sharing to state and local governments 

may generally be used to meet the non-federal match or cost-share requirements of another 

program.

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Given the LATCF’s purpose as a general revenue enhancement program and the broad eligible 

uses of LATCF funds, Treasury has determined that funds available under the LATCF program 

constitute revenue sharing. Therefore, funds under the program may be used to meet the nonfederal cost-share or matching requirements of other federal programs. Pursuant to 2 C.F.R. §

200.306(b), if funds are legally available to meet the match or cost-share requirements of an 

agency’s federal program, such awarding agency is required to accept such funds for the purpose of 

that program’s match or cost-share requirements except in the circumstances enumerated in that 

section. If a recipient seeks to use LATCF funds to satisfy match or cost-share requirements for a 

federal grant program, it should first confirm with the relevant awarding agency that no waiver has 

been granted for that program, that no other circumstances enumerated under 2 C.F.R. § 200.306(b) 

would limit the use of LATCF funds to meet the match or cost-share requirement, and that there is 

no other statutory or regulatory impediment to using the LATCF funds for the match or cost-share 

requirement. Additional guidance specific to Medicaid and CHIP is forthcoming.

Recipients using LATCF funds to meet non-federal match or cost-share requirements of another 

federal program must ensure that the costs are eligible costs under the other federal program and 

are compliant with the statutory, regulatory, and program requirements of the LATCF and the other 

federal program.

G. AVAILABILITY OF FUNDS

All funds are available to recipients until expended or returned to Treasury. 

3 See U.S. Government Accountability Office, Principles of Federal Appropriations Law, Third Edition, Volume II, p. 

10-99, GAO-06-382SP (February 2006), https://www.gao.gov/assets/gao-06-382sp.pdf
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II. OPERATIONAL TERMS OF THE ASSISTANCE

This section provides a summary of operational terms of the program, including payments, 

reporting, and compliance. Treasury expects to release reporting and compliance guidance for 

the LATCF program at a later date. 

A. PAYMENTS

Recipients may request payment of their allocation through the Treasury Submission Portal by 

following the instructions on Treasury’s website. Eligible applicants will be required to complete 

payment information and sign an award agreement. Tribal governments will be required to 

complete a certification regarding economic conditions.

B. REPORTING

All recipients will be responsible for submitting an annual Obligation and Expenditure report to 

Treasury, which is expected to require data on obligations and expenditures by category of use and 

certification that funds have not been used to fund lobbying activities. 

Information provided through annual reporting will be used to facilitate Treasury’s compliance 

review for uses of funds that do not comply with program requirements, as well as to reduce the 

risk of waste, fraud, and abuse. Any eligible revenue sharing county or eligible revenue sharing 

consolidated government that is determined to have failed to submit a report may be required to 

repay to Treasury an amount up to 5 percent of its total allocation, as authorized by Sections 605(d)

and (e).

C. OVERSIGHT

Recipients will be subject to audit or review by the Treasury Inspector General and 

Government Accountability Office. Recipients are subject to the Single Audit Act and its 

implementing regulations at 2 C.F.R. Part 200 Subpart F.

D. COMPLIANCE

a) General

Treasury may recoup funds from any recipient in cases of misuse of LATCF funds. Separately, in 

case of a failure to report, Section 605(c) provides specifically that Treasury may also recoup funds 

from an eligible revenue sharing county or an eligible revenue sharing consolidated government of 

an amount that the Secretary determines appropriate but that does not exceed 5 percent of the 

recipient’s total allocation.

Any amounts that Treasury has determined to recoup would be subject to generally applicable 

federal debt collection laws and procedures, including the provisions set forth in Chapter 37 of title 

31 of the United States Code and the Federal Claims Collection Standards at 31 C.F.R. Parts 900

through 904. 

Treasury expects to work with recipients to support the use of LATCF funds and the timely filing 
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of annual reports to Treasury. Treasury may, for example, request additional information and work 

with recipients to remedy the failure to timely file a report before initiating the recoupment process. 

Treasury may pursue additional remedies for noncompliance with applicable law or program 

requirements in conjunction with, or as an alternative to, recoupment, including imposing 

conditions on the receipt of additional LATCF funds by the recipient and/or terminating further 

payments from the LATCF.

b) Recoupment Process

Treasury will monitor recipients’ compliance with legislative and program requirements through

evaluation of information submitted by recipients through annual reporting as well as other 

sources. If Treasury identifies an instance of potential non-compliance, Treasury expects to provide 

the recipient with a notice of the proposed non-compliance. Treasury expects the notice of 

proposed non-compliance to set forth a process consistent with the award terms and conditions and 

applicable law. Recipients that receive a final determination of non-compliance from Treasury will 

be required to repay any amounts in accordance with the process set forth in the final determination 

of non-compliance. 

Treasury retains the discretion to provide additional guidance on the process set forth above in 

accordance with and as permitted by Chapter 37 of title 31 of the United States Code and the 

Federal Claims Collection Standards at 31 C.F.R. Part 900.

E. APPLICATION OF FEDERAL FINANCIAL ASSISTANCE REQUIREMENTS

The LATCF is considered federal financial assistance and recipients are generally subject to laws 

and regulations applicable to federal financial assistance. 

a) Financial Assistance Award Management Requirements

LATCF recipients are subject to the following provisions of 2 C.F.R. Part 200 (the Uniform 

Guidance):

• 2 C.F.R. Subpart A (Acronyms); 

• 2 C.F.R. 200.100-110 (certain General Provisions); 

• 2 C.F.R. 200.203 (public notice of Federal financial assistance programs); 

• 2 C.F.R. 200.303 (internal controls); and 

• Single Audit Act and its implementing regulations at 2 C.F.R. Part 200 Subpart F. 

Per 2 C.F.R. § 200.101(b), the program is not subject to other Uniform Guidance provisions 

beyond those detailed above, such as the provisions regarding program income, interest advances, 

equipment and real property management, procurement requirements, or subrecipient monitoring 

and reporting requirements. Therefore, capital assets acquired using LATCF funds are not subject 

to the Uniform Guidance’s use and disposition instructions, and program income is income to the 

recipient government and not subject to program restrictions.

No subrecipient reporting under 2 C.F.R. Part 170 (implementing the Federal Funding 

Accountability and Transparency Act of 2006) will be required for this program, although 
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recipients meeting the applicable thresholds will still be required to report on executive 

compensation pursuant to 2 C.F.R. Part 170. Treasury’s regulations at 31 C.F.R. Part 19 

(implementing OMB’s Guidelines to Agencies on Governmentwide Debarment and Suspension at 

2 C.F.R. Part 180) are applicable to the program. Recipients are required to comply with the 

System for Award Management (SAM) requirements in 2 C.F.R. Part 25.4

There are no matching, level of effort, or earmarking compliance responsibilities associated with 

the LATCF program. 

b) Buy America Domestic Content Procurement Preference

The Build America, Buy America Act establishes domestic content procurement preference

requirements for federal financial assistance programs for infrastructure.

5 These requirements 

apply to the LATCF. As such, expenditures for iron, steel, manufactured products, and 

construction materials used in an infrastructure project funded using a LATCF award generally 

must be produced in the United States. These requirements do not apply to non-infrastructure 

projects or to infrastructure projects undertaken in response to the COVID-19 public health 

emergency. 

Recipients should review the details of these domestic content procurement requirements as 

provided in the terms and conditions of the LATCF award, which follow the guidance provided by 

the Office of Management and Budget (OMB).

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 The definition of infrastructure as provided by the 

Build America, Buy America Act and OMB guidance is broad and includes the structures, 

facilities, and equipment for roads, highways, and bridges; public transportation; dams, ports, 

harbors, and other maritime facilities; intercity passenger and freight railroads; freight and 

intermodal facilities; airports; water systems, including drinking water and wastewater systems; 

electrical transmission facilities and systems; utilities; broadband infrastructure; and buildings and 

real property. An infrastructure project includes the construction, alteration, maintenance, or repair 

of infrastructure.

Treasury has issued a six-month public interest adjustment period general applicability waiver from 

the Buy America Domestic Content Procurement Preference (BAP) as applied to federal financial 

assistance provided to non-Tribal government recipients of LATCF. Under this waiver, the 

application of BAP requirements does not apply to LATCF award agreements entered into by these 

recipients during the waiver period, effective from September 27, 2022 to March 26, 2023.

Treasury has also issued a one-year general applicability waiver from the BAP requirements as 

applied to Tribal government recipients of LATCF. This one-year Tribal consultations waiver

applies to all award agreements entered into with Tribal governments during the one-year period 

4 2 C.F.R. Part 25, Subpart C, is inapplicable to this program as transfers under this program do not give rise to 

subrecipient relationships.

5 See section 70914(a) of the Infrastructure Investment and Jobs Act, Pub. L. No. 117-58 (IIJA). The Buy America, 

Build America Act was included as sections 70901-27 of the IIJA.

6 OMB’s guidance is provided in OMB Memorandum M-22-11, “Initial Implementation Guidance on Application of 

Buy America Preference in Federal Financial Assistance Programs for Infrastructure” (April 18, 2022), available at 

https://www.whitehouse.gov/wp-content/uploads/2022/04/M-22-11.pdf.
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beginning on the effective date of the waiver, January 17, 2023. In addition, in the case of award 

agreements entered into with Tribal governments prior to the date of the final waiver, January 17, 

2023, the waiver applies to all expenditures incurred after the date of the final waiver on an 

infrastructure project if there is no other federal assistance used for such project that is subject to 

BAP. Tribal governments that have received an award prior to the date that the Tribal Consultation 

waiver from the BAP became effective and expended the funds on infrastructure projects may still 

be subject to the requirements of the Buy America, Build America Act. Treasury has provided

more details on its website. 

In addition, the Buy America, Build America Act requirements do not apply to expenditures using 

LATCF funds for infrastructure projects undertaken in response to the COVID-19 public health 

emergency or in response to or anticipation of other major disasters or emergencies declared by the 

President under the Stafford Act.7 Treasury recognizes that the public health emergency is 

impacting recipients in different ways and that recipients are impacted by a broad range of other 

types of major disasters and emergencies declared under the Stafford Act. Accordingly, recipients 

should make their own determinations as to what infrastructure projects they need to undertake to 

respond to the COVID-19 public health emergency or other Stafford Act disaster or emergency.

F. COMPLIANCE WITH OTHER APPLICABLE LAWS

Recipients are responsible for complying with all other applicable laws in the course of using the 

funds from their award, including all applicable environmental laws and all laws applicable to 

federal financial assistance (unless stated otherwise in this guidance or the award agreement). 

Applicable laws include but are not limited to those listed in the award agreement.

Pursuant to Executive Order 13043, 62 FR 19217 (Apr. 8, 1997) re: Increasing Seat Belt Use,

Treasury encourages recipients to adopt and enforce on-the-job seat belt policies and programs for 

their employees when operating company-owned, rented or personally owned vehicles. Recipients 

should also encourage their contractors to adopt and enforce such policies. 

Pursuant to Executive Order 13513, 74 FR 51225 (Oct. 1, 2009), re: Reducing Text Messaging 

While Driving, Treasury encourages recipients to encourage their employees and contractors to 

adopt and enforce policies that ban text messaging while driving, and recipient should establish 

workplace safety policies to decrease accidents caused by distracted drivers.

7 More specifically, as provided in OMB’s guidance, the requirements of the Buy America, Build America Act do not 

apply to expenditures made in anticipation of or in response to an event or events that qualify as an “emergency” or 

“major disaster” within the meaning of the Stafford Act, 42 U.S.C. § 5122(1), (2). See OMB Memorandum M-22-11 

at 3-4. 
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III. CONTACT INFORMATION

E-mail correspondence is preferred. Correspondence by mail may be subject to significant delays.

LATCF@treasury.gov

U.S. Department of the Treasury 

Attn: Local Assistance and Tribal Consistency Fund

1500 Pennsylvania Ave NW

Washington, DC 20220

treasury.gov/LATCF
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IV. UPDATE LOG

Date Action

July 2022 Treasury issues Guidance

February 2023 Treasury updates Guidance to reflect amendment to LATCF by Section 103 

of Division LL of the Consolidated Appropriations Act, 2023 and to reflect 

Buy America Domestic Content Procurement Preference waivers issued by 

Treasury.

September 2023 Treasury updates name of LATCF annual report to match the LATCF 

Reporting Guidance