Treasury Department Amends Rule In Response To Auchincloss Letter
Following a letter to Secretary Janet Yellen from the Massachusetts Congressional Delegation led by Congressman Jake Auchincloss and Senator Ed Markey, the Treasury Department announced plans to reconsider the way the agency is calculating pandemic-related revenue losses.
Due to the unique way that Massachusetts funds public education, many Massachusetts cities and towns have reported that they are unable to claim general revenue loss, which is reimbursable under the American Rescue Plan Act (ARPA).
The Treasury Department’s initial proposal required a complex calculation that disproportionately limited municipalities in Massachusetts from demonstrating that they had lost general revenue due to the pandemic.
As a result, many communities were at risk of being unfairly barred from flexible funding that would allow them to build and upgrade critical infrastructure, expand health services, advance environmental remediation, and improve public safety.
Under the new rule, the Treasury Department addressed the Massachusetts Delegation’s concerns by allowing all cities and towns to claim up to $10 million in general revenue loss, rather than using the calculation that made many of them ineligible for flexible funding from ARPA.
Additionally, the Treasury Department agreed to the Delegation’s request to host Q&A sessions with local officials regarding the final rule.
"We should be empowering local governments, not wrapping them in red tape,” said Auchincloss in a statement. "I'll continue to go to bat for the cities and towns of the 4th as Congress oversees the funding rollout.”
A copy of the original letter sent to the Treasury Department can be found here.
Source:
Annie Sandoli