Assurance Services, Consulting Services • Published 10/26/2022 What You Need to Know About the Local Assistance and Tribal Consistency Fund

The American Rescue Plan Act of 2021 allocated $2 billion to the Local Assistance and Tribal Consistency Fund. These funds provide additional resources to help tribal governments and revenue-sharing counties recover from the public health and economic crisis resulting from the coronavirus pandemic. There is no pre-approval process for projects funded, and funding can be used for any governmental purpose except for lobbying activities. 

Who’s eligible? 

Of the $2 billion fund, allocations for fiscal years 2022 and 2023 include $250 million each year for eligible tribal governments and $750 million each year for revenue-sharing counties. Eligible entities may request payment of their funding through the Treasury Submission Portal no later than January 31, 2023. If an eligible entity does not complete its submission by the deadline, it will not qualify for the first or second payment. First payments are expected to be available immediately and made on a rolling basis. We anticipate that second payments will begin in fiscal year 2023.  

What is a tribal government?  

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 in the list published most recently as of the date of enactment of the American Rescue Plan under section 104 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 1531)." Tribal governments may log into the Treasury Submission Portal to review their specific allocation.  

What is a revenue-sharing county? 

An eligible revenue-sharing county is a county, parish, or borough independent of any other local government unit for which there is a negative revenue impact due to the implementation of or changes to a federal program. This agency must be the principal provider of government services within its jurisdiction. The District of Columbia, the Commonwealth of Puerto Rico, Guam, and the United States Virgin Islands are considered to be eligible revenue-sharing counties. The U.S. Treasury website lists eligible revenue-sharing counties and their allocation. 

Eligible use of funds 

The Local Assistance and Tribal Consistency Fund is treated as equivalent to self-generated funds or funds generated from local revenue. The funds may support local government programs, services, and capital expenditures. Tribal governments may invest in activities undertaken by tribal enterprises, such as operating capital expenditures for businesses owned or controlled by a tribal government.  

Examples of eligible activities include: 

• Provision of health services, education services, court services, police, fire, emergency medical, and other public safety services, utilities or sanitation services, and direct assistance to households 
• Capital expenditures on core facilities and equipment 
• Infrastructure investments 
• Long-term economic development activities 
• General government operations 
• Meeting another federal program’s non-federal match or cost-sharing requirements unless barred by statute or other applicable law 

Eligible tribal governments and revenue-sharing counties may use funds to cover eligible costs incurred starting March 15, 2021. They may also use the funds to cover expenses associated with administering the funds, such as consulting fees. All funds are available until expended or returned to the U.S. Treasury. 

Ineligible use of funds 

The Local Assistance and Tribal Consistency Fund may not be used for lobbying activities. Guidance states:  

“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 devices, 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.” 

Applicability of Uniform Guidance 

Recipients are subject to the following provisions of Uniform Guidance: 

• 2 C.F.R. Subpart A (acronyms and definitions) 
• 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) 
• Single Audit Act and its implementing regulations at 2 C.F.R. Part 200 Subpart F 

We can help 

P&N’s dedicated professionals are committed to helping our clients understand and leverage the Local Assistance and Tribal Consistency Fund. Contact us to discuss your organization’s questions, concerns, and unique situation. 

Visit the U.S. Treasury website for more information