Today, Rep. Cindy Axne (IA-03) is highlighting a final rule issued by the Department of the Treasury that implements her push to cut red tape for Iowa’s county and city governments looking to utilizing COVID-19 relief funds.
In November, Rep. Axne backed bipartisan legislation that would allow local governments to use up to $10 million for general government services, without requiring local governments with limited capacity to submit detailed documentation of revenue losses. She supported this legislation in part because many Iowa cities lack the administrative staff to complete the paperwork required to fully utilize these funds, a concern she had previously raised with Treasury.
Last week, the Treasury Department issued a final rule that reduces that administrative burden on local governments, as well as expands the approved uses of these COVID-19 relief funds to include water, broadband, housing, and other infrastructure projects.
“Iowa’s local governments know best how to allocate the funding we provided them to get back on their feet during the COVID-19 pandemic – and I’m glad that the Treasury Department has agreed with our push to recognize that fact,” said Rep. Axne. “As we work to boost economic growth and get our local economies growing strong, giving county and city governments the flexibility they need to cover their losses and invest in their long-term success is critical.”
“Small towns and rural counties are still dealing with the fiscal impacts of COVID and this new flexibility gives them options they would not have otherwise,” said Bill Menner, Executive Director of the Iowa Rural Development Council. “It means a lot to rural Iowa!”
The State, Local, Tribal, And Territorial Fiscal Recovery, Infrastructure, And Disaster Relief Flexibility Act, the bipartisan measure that pushed for similar changes to this local funding, has the support of the National Governors Association, the U.S. Conference of Mayors, the National League of Cities, and the National Association of Regional Councils.
Last March, the American Rescue Plan allocated more than $1 billion for Iowa’s cities and counties to support essential services and help communities stay on their feet through economic turmoil, including more than $300 million for cities and counties in Iowa’s Third Congressional District.
Original source can be found here
