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    Legislative Services

    County Issues Newsletter | January 2024

    News Article | January 26, 2024

    NACo Responds to Interim Rule on Fiscal Recovery Fund

    County News | Legislative News
    Legislative Services

    The National Association of Counties (NACo), along with the National League of Cities and the Government Finance Officers Association, submitted comments in response to the U.S. Department of Treasury's issuance of an Obligation Interim Final Rule (Obligation IFR) with respect to the Coronavirus State and Local Fiscal Recovery Fund established under the American Rescue Plan Act.

    Treasury's Obligation IFR provides counties with clarification and flexibility as it relates to the definition of "obligation" provided through the Treasury's Final Rule, published January 2022.

    The revised Obligation IFR outlines specific costs that can be covered before the Dec. 31, 2024, obligation deadline and Dec. 31, 2026, expenditure deadline, including limitations around payroll expenses and re-obligation of funds.

    NACo published a detailed overview of Treasury's Obligation IFR and what's included in the Comment Letter.

    Treasury will now review comments submitted and release a Final Rule this year. NACo will keep us updated on developments and provide a full analysis upon its release.

    For more information about this article, please contact Megan Molleur at (800) 456‑5974.