FISCAL RECOVERY FUNDS
Several weeks ago, Mayor Woodfin joined Rep. Terri Sewell to announce more than $140 million in federal relief to the City of Birmingham as part of the American Rescue Plan Act. Half has been deposited now and we will receive the remaining half in about a year.
Thank you to those who submitted project ideas.
We received over 150 project idea submissions for the City's fiscal recovery funds by our June 30th 5pm CT deadline. Project ideas will be reviewed by an interdisciplinary committee of city staff. Idea submitters can expect updates on the timeline for review in the coming weeks.
Interim Guidance on Uses
On Monday, May 10th, the U.S. Department of Treasury announced their Interim Final Rule for how the City can spend Coronavirus State and Local Fiscal Recovery Funds. We are still reviewing this Treasury guidance to better understand allowable uses. We expect further amendments to the rules in the coming weeks and months, but we know we can spend the dollars in the following broad categories.
Treasury’s Interim Final Rule identifies several other ineligible uses, including funding debt service, legal settlements or judgments, and deposits to rainy day funds or financial reserves. Further, general infrastructure spending is not covered as an eligible use outside of water, sewer, and broadband investments or above the amount allocated under the revenue loss provision. While the program offers broad flexibility to recipients to address local conditions, these restrictions will help ensure that funds are used to augment existing activities and address pressing needs.