Overview of the State and Local 

Fiscal Recovery Funds 2023 Interim 

Final Rule

August 2023
2

Housekeeping

GETTING STARTED

Before we begin, please have the following documents 

available:

• Overview of the 2022 Final Rule

• 2022 Final Rule Frequently Asked Questions

• Overview of the 2023 Interim Final Rule

• 2023 Interim Final Rule

Links to each of these documents are available in the 

announcement email and in the meeting invitation

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
3

AGENDA

Session Overview

Discussion of eligible uses

Emergency Relief from Natural Disasters

Surface Transportation projects

Title I projects

Summary

Public Comment Period Overview

Q&A

Generally, the existing eligible

uses, as discussed in the 2022

final rule, remain unchanged.

Recipients may continue to

use SLFRF funds in alignment

with the 2022 final rule.

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
4

AGENDA

Session Overview

Discussion of eligible uses

Emergency Relief from Natural Disasters

Surface Transportation projects

Title I projects

Summary

Public Comment Period Overview

Q&A

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
5

Emergency Relief from Natural Disasters - Summary

Natural Disasters Surface Transportation Title I

In this section you will learn the following:

1. Newly available uses under the Emergency Relief 

from Natural Disasters eligible use category

2. The two-step process for identifying an eligible use

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Emergency Relief from Natural Disasters - Overview

Two-Step Process For Designing An Eligible Use

Identify Natural Disaster Identify Emergency Relief 1 2

Natural Disasters Surface Transportation Title I

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Emergency Relief from Natural Disasters - Overview

Defining a natural disaster

Natural Disasters Surface Transportation Title I

Natural disaster is defined as a hurricane, tornado, storm, flood,

high water, wind-driven water, tidal wave, tsunami, earthquake,

volcanic eruption, landslide, mudslide, snowstorm, drought, or

fire, in each case attributable to natural causes, that causes or

may cause substantial damage, injury, or imminent threat to

civilian property or persons. A natural disaster may also include

another type of natural catastrophe, attributable to natural

causes, that causes, or may cause, substantial damage, injury, or

imminent threat to civilian property or persons.

1 Identify Natural Disaster

Two-Step Process For Designing An Eligible Use

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Emergency Relief from Natural Disasters - Overview

Natural Disasters Surface Transportation Title I

2 Identify Emergency Relief

Identify emergency relief:

• Assistance needed to save lives and to protect property and public 

health and safety, or to lessen or avert the threat of catastrophe 

• Responds to the physical or negative economic impacts, or potential 

physical or negative economic impacts, of a natural disaster

• Is related and reasonably proportional to the impact identified

Two-Step Process For Designing An Eligible Use

Two Scenarios For Providing Emergency Relief

Natural Disaster Has Occurred Or Is 

Expected To Occur Imminently

Natural Disaster Is Threatened

To Occur In The Future A B

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds

Assistance needed to save lives and to protect 

property and public health and safety

Assistance needed to lessen or avert the threat of 

catastrophe
9

Emergency Relief from Natural Disasters

Enumerated eligible uses: 

• Temporary emergency housing 

• Food assistance

• Financial assistance for lost wages 

• Other immediate needs 

• Emergency protective 

measures

• Debris removal

• Public infrastructure repair

• Increased operational costs

• Cash assistance

• Home repairs

All emergency relief must 

be related and reasonably 

proportional 

Natural Disasters Surface Transportation Title I

A Natural Disaster Has Occurred Or is Expected To Occur Imminently

1 Identify Natural Disaster 2 Identify Emergency Relief

Event meets the definition of natural 

disaster and is, or was, the subject of 

a declaration or designation in the 

form of:

• Stafford Act declaration

• Emergency declaration by the 

Governor of a state 

• Emergency declaration by a Tribal 

government

• Designation of an event as a 

natural disaster by the chief 

executive of the recipient 

government 

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• Document evidence of historical 

patterns or predictions of natural 

disasters that reasonably 

demonstrate the likelihood of 

future occurrence of a natural 

disaster 

• Identify emergency relief that 

lessens or averts the threat of a 

natural disaster and its potential 

physical or negative economic 

impacts

• Enumerated eligible uses: 

mitigation activities

Emergency Relief from Natural Disasters

Natural Disasters Surface Transportation Title I

All emergency relief must 

be related and reasonably 

proportional 

B Natural Disaster Is Threatened to Occur in the Future

1 Identify Natural Disaster 2 Identify Emergency Relief

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Emergency Relief from Natural Disasters

Mitigation Activities

• Mitigation activities may be:

• Stand-alone projects that reduce 

or eliminate potential impacts of 

the threat of a natural disaster

• Incorporated into repair or 

reconstruction projects that 

address the impacts of a natural 

disaster

Natural Disasters Surface Transportation Title I

B Natural Disaster Is Threatened to Occur in the Future

2 Identify Emergency Relief

Written Justification

• For mitigation activities with capital 

expenditures exceeding $1 million, 

recipients (except for Tribal 

governments) must complete a 

Written Justification:

• Include description of emergency 

relief and threat or impact to be 

addressed

• Explain why a capital expenditure 

is appropriate

• Compare proposed expenditure 

against alternatives

All emergency relief must 

be related and reasonably 

proportional 

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Emergency Relief from Natural Disasters - Overview

• If a recipient uses SLFRF funds to provide assistance for losses resulting from a 

natural disaster that is the subject of a Stafford Act declaration, the Stafford Act’s 

prohibition on duplication of benefits applies. See 5 U.S.C. 5155(a).

Natural Disasters Surface Transportation Title I

Duplication of Benefits

Recipients may not provide financial 

assistance to a person, business concern, or 

other entity with respect to disaster losses for 

which the beneficiary will receive financial 

assistance under any other program or from 

insurance or any other source.

*See IFR for more details on duplication of benefits requirements

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Funds may be used for 

costs incurred from 

December 29, 2022

Emergency Relief from Natural Disasters - Overview

Natural Disasters Surface Transportation Title I

Funds must be 

expended by December 

31, 2026

Funds must be obligated 

by December 31, 2024

Timeline for Use of Funds

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Emergency Relief from Natural Disasters - Review

Natural Disasters Surface Transportation Title I

Key takeaways about the Natural Disaster 

eligible use:

1. Eligible uses

2. The two-step process for identifying an eligible use

3. Reminder that no pre-approval is required and 

recipients may be able to engage in similar 

activities in other existing eligible use categories 

(ex. Revenue Loss)

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
15

AGENDA

Session Overview

Discussion of eligible uses

Emergency Relief from Natural Disasters

Surface Transportation projects

Title I projects

Summary

Public Comment Period Overview

Q&A

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
16 Natural Disasters Surface Transportation Title I

Cap on Use of Funds Requirements of Other 

Laws

Supplement, not 

Supplant

Obligation and 

Expenditure Deadline

Statutory Requirements for Title I and Surface Transportation 

Projects

1 2

3 4

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• Recipients may only use the greater of 30% of their award and 

$10 million (not to exceed their total award) for Surface 

Transportation projects and Title I projects, taken together. 

Natural Disasters Surface Transportation Title I

Cap on Use of Funds

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds

Statutory Requirements for Title I and Surface Transportation 

Projects

1
18

• Titles 23, 40, and 49 of the U.S. Code, and Title I of the Housing 

and Community Development Act of 1974 apply to the use of 

funds for Surface Transportation and Title I projects, as 

applicable, among other cross-referenced statutory 

requirements. 

Natural Disasters Surface Transportation Title I

Requirements of Other Laws

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds

Statutory Requirements for Title I and Surface Transportation 

Projects

2
19

• Recipients using SLFRF funds for these uses must supplement, 

not supplant, other federal, state, territorial, Tribal, and local 

government funds (as applicable) that are otherwise available 

for these projects. 

Natural Disasters Surface Transportation Title I

Supplement, not Supplant

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds

Statutory Requirements for Title I and Surface Transportation 

Projects

3
20 Natural Disasters Surface Transportation Title I

Most other eligible uses -

Funds must be expended by 

December 31, 2026

Funds must be expended by 

September 30, 2026

3 months earlier than most 

eligible uses

Obligation & Expenditure Deadline

Statutory Requirements for Title I and Surface Transportation 

Projects

Funds may used for costs 

incurred from December 

29, 2022

Funds must be obligated 

by December 31, 2024

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4
21

AGENDA

Session Overview

Discussion of eligible uses

Emergency Relief from Natural Disasters

Surface Transportation projects

Title I projects

Summary

Public Comment Period Overview

Q&A

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
22

Surface Transportation - Summary

Natural Disasters Surface Transportation Title I

In this section you will learn the following:

1. How to use funds for Surface Transportation 

projects

2. Applicable statutory and regulatory requirements 

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23 Natural Disasters Surface Transportation Title I

Cap on Use of Funds Requirements of Other 

Laws

Supplement, not 

Supplant

Obligation and 

Expenditure Deadline

REMINDER: Statutory Requirements for Title I and Surface 

Transportation Projects

1 2

3 4

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Surface Transportation - Overview

Recipients may use SLFRF funds for Surface Transportation projects, under the 

following pathways:

Natural Disasters Surface Transportation Title I

Pathway 

1

Pathway 

2

Pathway 

3

Surface 

transportation 

projects receiving 

funding from DOT

Surface 

transportation 

projects NOT 

receiving funding 

from DOT

Satisfying nonFederal share 

requirements for 

certain surface 

transportation 

projects, or 

repaying TIFIA 

loan

1 2 3

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Surface Transportation - Overview

PREDECISIONAL/INTERNAL ONLY

Natural Disasters Surface Transportation Title I

Pathway One: Surface Transportation Projects Receiving Funding from the 

Department of Transportation (DOT)

Eligible Projects

• Recipients may use funds for projects under 26 programs administered by DOT 

that currently receive funding from DOT or projects that will receive funding 

from DOT prior to December 31, 2024. 

• Recipients may: 

• Expand Existing DOT Projects

• Cover Unexpected Costs of Existing DOT Projects

• Fund Projects Not Currently Approved by DOT, but will be before 12/31/24

• The Surface Transportation project must be subject to DOT’s oversight during the 

period that SLFRF funds are used for the project. 

1

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Surface Transportation - Overview

PREDECISIONAL/INTERNAL ONLY

Natural Disasters Surface Transportation Title I

Pathway One: Surface Transportation Projects Receiving Funding from DOT

• Recipients must consult with DOT before using funds under Pathway One. 

• Recipients must comply with the requirements that would apply to the project as 

administered by DOT. 

• For some projects, SLFRF cannot be used to fund operating expenses. Preventive 

maintenance is not considered an operating expense.

• For states - a project eligible under title 23 or that otherwise is subject to the 

requirements of title 23 must either demonstrate progress in achieving a state of 

good repair under 23 U.S.C. 119(e) or support the achievement of one or more 

performance targets under 23 U.S.C. 150. 

Requirements

1

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PREDECISIONAL/INTERNAL ONLY

Natural Disasters Surface Transportation Title I

Surface Transportation Projects Are Eligible Under These Programs 

within Pathway One

✓ Infra Grants 

✓ National Highway Performance Program (NHPP)

✓ Bridge Investment Program (BIP)

✓ Surface Transportation Block Grant Program (STBG)

✓ Highway Safety Improvement Program (HSIP)

✓ Congestion Mitigation and Air Quality Improvement 

Program (CMAQ)

✓ Charging and Fueling Infrastructure Discretionary Grant 

Program (CFI Program)

✓ Territorial and Puerto Rico Highway Program

✓ National Highway Freight Program (NHFP)

✓ Rural Surface Transportation Grant Program

✓ Carbon Reduction Program (CRP)

✓ Promoting Resilient Operations for Transformative, Efficient, 

and Cost-Saving Transportation (PROTECT)

✓ Tribal Transportation Program (TTP)

✓ Federal Lands Transportation Program (FLTP)

✓ Federal Lands Access Program (FLAP)

✓ Rebuilding American Infrastructure with Sustainability and 

Equity (RAISE) Grant Program

✓ Transportation Infrastructure Finance and Innovation Act 

(TIFIA) 

✓ Urbanized Formula Grants

✓ Fixed Guideway Capital Investment Grant

✓ Formula Grants for Rural Areas

✓ State of Good Repair Grants

✓ Grants for Buses and Bus Facilities

✓ National culvert removal, replacement, and restoration 

grant program (Culvert AOP Program)

✓ Bridge Replacement, Rehabilitation, Preservation, 

Protection, and Construction Program (Bridge Formula 

Program or BFP)

✓ Activities to carry out metropolitan transportation planning 

✓ Projects that further the completion of a designated route 

of the Appalachian Development Highway System (ADHS) 

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Surface Transportation - Overview

PREDECISIONAL/INTERNAL ONLY

Natural Disasters Surface Transportation Title I

Pathway Two: Using SLFRF for Surface Transportation Projects Not Receiving 

Funding from DOT

2

• Recipients are not required to 

obtain Treasury approval prior to 

using funds on Surface 

Transportation projects

• NEPA environmental reviews are 

not required

• This pathway is for projects outside of 

the streamlined framework

• Treasury will design a process for 

recipients seeking to fund these 

projects

• Recipients must satisfy NEPA 

environmental review requirements’

• Treasury will design a process for 

recipients seeking to fund these 

projects; Treasury approval will be 

required

There are two ways to use SLFRF funds within Pathway Two:

Streamlined Framework Non-Streamlined Framework

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Surface Transportation - Overview

PREDECISIONAL/INTERNAL ONLY

Natural Disasters Surface Transportation Title I

Pathway Two: Using SLFRF for Surface Transportation Projects Not Receiving 

Funding from DOT

Eligible Projects: Streamlined Framework

• Qualifies as a project under the RAISE program and satisfies the following 

criteria: 

• No more than $10 million in SLFRF is contributed to a project

• The entire project scope is limited to the actions or activities deemed by 

DOT as meeting the criteria for NEPA Categorical Exclusion under 23 CFR 

771.116(c)(1)-(22), 771.117(c)(1)-(30), and 771.118(c)(1)-(16) and does not 

involve “unusual circumstances”

2

The 2023 RAISE Grants Notice of Funding Opportunity can be viewed at 

https://www.transportation.gov/RAISEgrants/raise-nofo

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Surface Transportation - Overview

PREDECISIONAL/INTERNAL ONLY

Natural Disasters Surface Transportation Title I

Pathway Two: Using SLFRF for Surface Transportation Projects Not Receiving 

Funding from DOT

• Recipients generally must comply with the requirements of titles 23, 40, and 49 

as described in the interim final rule and DOT’s implementing regulations.

• For some programs, SLFRF cannot be used to fund operating expenses. 

Preventive maintenance is not considered an operating expense.

• For states –a project eligible under title 23 or that otherwise is subject to the 

requirements of title 23 must either demonstrate progress in achieving a state of 

good repair under 23 U.S.C. 119(e) or support the achievement of one or more 

performance targets under 23 U.S.C. 150. 

Requirements: Streamlined Framework

2

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Surface Transportation - Overview

PREDECISIONAL/INTERNAL ONLY

Natural Disasters Surface Transportation Title I

Pathway Two: Using SLFRF for Surface Transportation Projects Not Receiving 

Funding from DOT

Non-Streamlined Framework

• If recipients wish to pursue a project within Pathway Two, but outside of the streamlined 

approach, they may submit a notice of intent to Treasury.

• Treasury will evaluate the projects included in these notices of intent, along with 

comments to this IFR, to design and implement the framework for approving these types 

of projects. 

• Projects submitted outside the streamlined framework via this process will be subject to 

Treasury approval.

• The notice of intent must be submitted to NOI-SLFRF@Treasury.gov and is due 30 calendar 

days after the end of the IFR comment period. 

• For an example of what an ideal notice of intent would include, please see the 2023 IFR 

section titled “Pathway Two: Notice of Intent for Projects Outside Streamlined Framework.”

2

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Surface Transportation - Overview

• Can be used to repay a TIFIA loan

• Can be used to satisfy non-federal cost share requirements under these four DOT 

programs: 

• INFRA Grants

• Fixed Guideway Capital Investment Grants

• Mega Grants

• Projects eligible for credit assistance under the TIFIA program

Natural Disasters Surface Transportation Title I

Pathway Three: Using SLFRF to Satisfy Non-Federal Share Requirements for 

Certain Transportation Projects

Eligible Projects

3

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Surface Transportation - Overview

• Recipients must consult with DOT prior to using funds under Pathway Three. 

• As with any use of funds to meet non-federal cost share requirements, the 

requirements associated with the project, as administered by DOT, continue to 

apply unless provided otherwise by DOT. 

Natural Disasters Surface Transportation Title I

Pathway Three: Using SLFRF to Satisfy Non-Federal Share Requirements for 

Certain Transportation Projects or to Repay a TIFIA Loan

Requirements

3

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
34 Natural Disasters Surface Transportation Title I

Cap on Use of Funds Requirements of Other 

Laws

Supplement, not 

Supplant

Obligation and 

Expenditure Deadline

REMINDER: Statutory Requirements for Title I and Surface 

Transportation Projects

1 2

3 4

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
35 Natural Disasters Surface Transportation Title I

Most other eligible uses -

Funds must be expended by 

December 31, 2026

Funds must be expended by 

September 30, 2026

3 months earlier than most 

eligible uses

Obligation & Expenditure Deadline

Reminder: Statutory Requirements for Title I and Surface 

Transportation Projects

Funds may be used for 

costs incurred from 

December 29, 2022

Funds must be obligated 

by December 31, 2024

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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“Supplement, Not Supplant” Example

As a reminder, recipients may not:

• De-obligate funds and replace those previously obligated funds with SLFRF funds under this 

eligible use category or

• Use SLFRF to replace federal or non-federal funds identified in a federal commitment, such 

as an award agreement. 

Consider a municipal road project totaling $30 million:

• The recipient has not yet entered into an award agreement with DOT but is expecting that 

federal funds from DOT will make up $25 million of the project and plan on allocating local 

sources to satisfy the other $5 million required to satisfy cost-share requirements. 

• Since the recipient has not yet entered into an award agreement with DOT, the recipient 

may choose to alter the funding mixture to include SLFRF funding.

• If the recipient had entered into an award agreement with DOT, then the funds for the 

project may not be replaced with SLFRF funds. 

• In this scenario, recipients would be able to use SLFRF funds to expand the scope of the 

project or to cover unexpected costs, after consulting with DOT.

Natural Disasters Surface Transportation Title I

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REMINDER: Other Resources

• For more information, please see the following materials:

• The 2023 Interim Final Rule

• Overview of the 2023 Interim Final Rule

• Reminder – revenue loss funds may be used to provide government services, 

which may include activities that are eligible under the Surface Transportation 

eligible use category

Natural Disasters Surface Transportation Title I

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Surface Transportation - Review

Natural Disasters Surface Transportation Title I

Key takeaways about the Surface Transportation eligible use:

1. Reviewed the three pathways for transportation 

projects

2. Highlighted applicable requirements

3. Reviewed key difference from existing eligible uses

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
39

AGENDA

Session Overview

Discussion of eligible uses

Emergency Relief from Natural Disasters

Surface Transportation projects

Title I projects

Summary

Public Comment Period Overview

Q&A

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Title I - Summary

Natural Disasters Surface Transportation Title I

In this section you will learn the following:

1. How to use funds for Title I projects, which are those eligible 

in the Community Development Block Grant (CDBG) or Indian 

Community Development Block Grant (ICDBG) programs 

available through the Department of Housing and Urban 

Development (HUD)

2. Program administration

3. Key differences from existing eligible uses and limitations on 

use

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Title I - Overview

✓ Acquisition of certain real property for a public purpose, 

subject to certain limitations

✓ Disposition of certain property, subject to certain 

limitations and rules

✓ Acquisition, construction, reconstruction, rehabilitation, 

or installation of public facilities and improvements, 

clearance and remediation activities

✓ Public services, subject to the limitation as discussed

✓ Interim assistance where immediate action is required 

for certain activities such as street repair, and costs to 

complete an urban renewal project under Title I

✓ Relocation payments for relocated families, businesses, 

nonprofit organizations, and farm operations, under 

certain conditions

✓ Payments to housing owners for loss of certain rental 

income

✓ Certain housing services

✓ Acquisition, construction, reconstruction, rehabilitation, 

or installation of privately owned utilities

✓ Rehabilitation and reconstruction of housing, conversion 

of structures to housing, or construction of certain 

housing

✓ Homeownership assistance

✓ Technical assistance to entities to increase capacity to 

carry out CDBG-eligible projects

✓ Assistance to certain institutions of higher education to 

carry out eligible activities

✓ Administration activities including general management, 

oversight, and coordination costs, fair housing activities, 

indirect costs, and submission of applications for federal 

programs

✓ Planning activities including the development of plans 

and studies, policy planning, and management and 

capacity building activities; and

✓ Satisfying the non-federal share requirements of a 

federal financial assistance program in support of 

activities that would be eligible under the CDBG and 

ICDBG programs.

Natural Disasters Surface Transportation Title I

Recipients may undertake projects under this eligible use that are eligible activities under the CDBG and ICDBG programs, as 

outlined in section 105(a) of Title I of the Housing and Community Development Act of 1974

Eligible Uses: Illustrative List of Eligible Activities under CDBG and ICDBG

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Title I - Overview

• The Primary Objective: Direct at least 70% of SLFRF 

funds used for Title I projects to projects that 

principally benefit low- and moderate-income 

persons.

• Public Services Cap: Not more than 15% of SLFRF 

funds used for Title I projects may be spent under the 

“public services” category of eligible activities.

• Planning and Administrative Costs Cap: Not more 

than 20% of SLFRF funds used for Title I projects may 

be spent on planning and administrative costs.

• BEAD Program Requirements: requirements of the 

Broadband Equity, Access, and Deployment (BEAD) 

program, as outlined in section 60102 of the 

Infrastructure Investment and Jobs Act, apply.

• Environmental Review Requirements: Satisfy NEPA 

environmental review requirements

• CDBG National Objectives: Each project undertaken 

under the Title I eligible use must satisfy at least one 

CDBG National Objective.

• Labor Standards: Prevailing wage rate requirements in 

accordance with the Davis-Bacon Act and other labor 

standards applied by HUD to construction work under 

Title I apply.

Natural Disasters Surface Transportation Title I

Applicable Requirements

Recipients using SLFRF funds for Title I projects generally must comply with Title I requirements 

and the associated regulations except as provided otherwise in the IFR

For all recipients For non-Tribal governments only

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Pre-Approval Requirements

Title I - Overview

• Recipients generally must comply with environmental review requirements 

in HUD statutes and regulations, submit a project-level certification to 

Treasury, and receive Treasury approval prior to using SLFRF funds for Title I 

projects. 

• Recipients are not required to submit certifications or obtain Treasury 

approval for Title I projects that satisfy either of the criteria below. 

Additionally, they may begin using SLFRF funds for the project right away:

• Exempt Activities: as contemplated by 24 CFR 58.34(a).

• Categorically Excluded Activities Not Subject to 24 CFR 58.5, as 

contemplated by 24 CFR 58.35(b), provided that the circumstances 

described in 24 CFR 58.35(c) are not present.

Natural Disasters Surface Transportation Title I

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
44 Natural Disasters Surface Transportation Title I

Cap on Use of Funds Requirements of Other 

Laws

Supplement, not 

Supplant

Obligation and 

Expenditure Deadline

REMINDER: Statutory Requirements for Title I and Surface 

Transportation Projects

1 2

3 4

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
45

“Supplement, Not Supplant” Example

As a reminder, recipients may not:

• De-obligate funds and replace those previously obligated funds with SLFRF funds under this 

eligible use category or

• Use SLFRF to replace federal or non-federal funds identified in a federal commitment, such 

as an award agreement. 

Consider an ongoing project for the construction of a community garden:

• If a recipient had already obligated non-SLFRF funds to the project, the recipient could not 

terminate or renegotiate existing contracts for the construction of that garden in order to 

use SLFRF funds to replace the previously obligated funds.

• SLFRF funds could be used to:

• Provide additional resources to that project / expand the scope of the project

• Undertake a separate, eligible project (e.g., another community garden project)

Natural Disasters Surface Transportation Title I

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46 Natural Disasters Surface Transportation Title I

Most other eligible uses -

Funds must be expended by 

December 31, 2026

Funds must be expended by 

September 30, 2026

3 months earlier than most 

eligible uses

Obligation & Expenditure Deadline

Reminder: Statutory Requirements for Title I and Surface 

Transportation Projects

Funds may be used for 

costs incurred from 

December 29, 2022

Funds must be obligated 

by December 31, 2024

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
47

REMINDER: Other Resources

• For more information, please see the following materials:

• The 2023 Interim Final Rule

• Overview of the 2023 Interim Final Rule

• Reminder – recipients are already able to undertake many eligible Title I activities 

under revenue loss and the public health and negative economic impacts eligible 

use. 

Natural Disasters Surface Transportation Title I

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
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Title I - Review

Natural Disasters Surface Transportation Title I

Key takeaways about the Title I eligible use:

1. Reviewed how to use funds for projects eligible 

under the CDBG program

2. Highlighted applicable requirements

3. Reviewed key difference from existing eligible uses

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
49

AGENDA

Session Overview

Discussion of eligible uses

Emergency Relief from Natural Disasters

Surface Transportation projects

Title I projects

Summary

Public Comment Period Overview

Q&A

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
50

AGENDA

Session Overview

Discussion of eligible uses

Emergency Relief from Natural Disasters

Surface Transportation projects

Title I projects

Summary

Public Comment Period Overview

Q&A

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51

Overview of Public Comment Period Process

Please submit comments electronically through the Federal eRulemaking Portal: 

http://www.regulations.gov

Comments also can be mailed to:

Office of Recovery Programs

Department of the Treasury

1500 Pennsylvania Avenue

Washington, DC 20220

All comments should be captioned “Coronavirus State and Local Fiscal Recovery Funds 2023 

Interim Final Rule Comments.” Please include your:

• Name

• Organization affiliation

• Address

• Email address

• Telephone number

Outside of the public comment process, Tribal governments may provide feedback during the 

upcoming Tribal consultation on the SLFRF IFR on September 12, 2023 at 1:00 PM ET.

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
52

AGENDA

Session Overview

Discussion of eligible uses

Emergency Relief from Natural Disasters

Surface Transportation projects

Title I projects

Summary

Public Comment Period Overview

Q&A

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds
53

Thank you.

For More Information about SLFRF, including 

a link to the 2023 Interim Final Rule: 

Please visit Treasury’s State & Local website 

at www.treasury.gov/SLFRP

For Media Inquiries: 

Please contact the U.S. Treasury Press Office 

at (202) 622-2960

For General Inquiries:

Please email SLFRF@treasury.gov

U.S. Department of the Treasury, Coronavirus State & Local Fiscal Recovery Funds