On Jan. 27, 2023, the Treasury issued the final rule, providing substantial flexibility to recipients so they may respond to their unique pandemic-related needs. This flexibility is designed to help state, local and tribal governments adapt to the evolving public health emergency while allowing them to tailor their response to the needs of their local communities.

The ARPA Flex provision provides additional flexibility for states, tribes and local units of government to spend up to $10 million-or 30% of the total ARPA funds received-on newly eligible SLFRF grant expenditures.

The new eligible SLFRF grant expenditures include spending on:

- Emergency relief from natural disasters, including temporary emergency housing, food assistance, financial assistance for lost wages, or other immediate needs.

- Transportation infrastructure eligible projects and matching funds.

- Any program, project, or service that would also be eligible under HUD's Community Development Block Grant program.

- Government services, which includes the modernization of cybersecurity (hardware, software and critical infrastructure).