Capitol Corner: January 2023

Key Notes on the FY23 Appropriations

On December 29, 2022, President Biden signed into law the $1.65 trillion omnibus bill to fund the government through September 2023. The omnibus bill provides $1 million in funding for the North Mecklenburg County Housing Preservation Initiative that was requested by Centralina Regional Council and supported by Congresswoman Alma Adams. The bill also provides $772.5 billion in nondefense discretionary funding, up almost 6% from $730 billion from FY22.

The FY23 appropriations funding includes modest increases to most Older Americans Act (OAA) programs and more significant increases to the Economic Development Administration (EDA), the Department of Transportation (DOT) and the Department of Housing and Urban Development (HUD). A brief summary of key programs for Centralina Regional Council in the FY23 appropriations is available HERE. 

As the last piece of legislation passed by the 117th Congress, other bills were attached to the omnibus as amendments. This includes the Cornyn/Padilla amendment, which contained the State, Local Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act (S. 3011/H.R. 5735). The amendment provides the flexibility to use American Rescue Plan Act (ARPA) funds for purposes of infrastructure, neighborhood revitalization, and disaster relief.

The provisions of the Cornyn/Padilla amendment include:

• Allowing the greater of $10 million or 30 percent of the total ARPA allocation provided to a state or local government to be used under a new, separate provision that further allows infrastructure-related activities authorized under federal surface transportation laws or Title I of the Housing and Community Development Act of 1974;
• Allowing CSLFRF funding to be used to provide “emergency relief from natural disasters or the negative economic impacts of natural disasters, including temporary emergency housing, food assistance, financial assistance for lost wages or other immediate needs”; and
• Providing the Department of the Treasury with flexibility in its use of administrative funds to continue to advise and support local governments.

The new law requires the Department of the Treasury to release updated guidance within 60 days of the bill’s signing. More updates on ARPA flexibility are expected late in February.

Keep in mind when moving forward with ARPA funded projects, the UNC School of Government advises including a simple statement in any press releases, announcements, bid solicitations, program information and projects funded with federal grant funds. For example, “This [project] [is/was] supported by a grant from US Treasury as part of the American Rescue Plan Act Coronavirus State and Local Fiscal Recovery Funds award totaling $XX [Insert total amount here].”