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NAPA Supports COVID Relief Fund Flexibility to Address Infrastructure and Supply Chain Issues
December 20, 2021 by NAPA Government Affairs

On Nov. 29, NAPA signed a letter sent to the Department of the Treasury to request relief for government agencies and businesses that have and continue to face unprecedented pandemic-induced supply chain delays and shortages
that may undercut the anticipated benefits of the Bipartisan Infrastructure Law (BIL - formerly the Infrastructure Investment and Jobs Act) investments. Specifically, the letter requests that the Department of the Treasury clarify that state and local governments can use the American Rescue Plan Act (ARPA) COVID-19 relief funds to mitigate the effects of supply chain delays and shortages, such as for material price increases and the effects they have on project costs.

In addition, NAPA along with 35 transportation construction organizations, signed onto a letter sent to the U.S. House of Representatives leadership urging swift passage of the bipartisan State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act (S.3011/H.R. 5735). This legislation would make several categories of infrastructure investments and disaster relief eligible for unspent COVID-19 relief dollars. The bill specifies that ARPA funds could be reallocated to many highway programs. It also extends the deadline to use relief funding if budgeted for eligible infrastructure projects. The legislation passed the Senate and has broad, bipartisan support in the House.

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