Treasury Letter to Governor Ducey_20211005 FINAL

Fo) THE DEPUTY SECRETARY OF THE TREASURY g i WASHINGTON 8 October 5, 2021 ‘The Honorable Douglas Ducey GovernorStateCapitol1700WestWashington St. Phoenix, AZ 85007 Dear GovemorDucey: Sincethe first caseofcoronavirusdisease 2019 (COVID-19) wasdiscovered in the United States in January 2020, it has infectedover40million and killedover 700,000 Americans. The disease continues to posean imminent threat, killing over 1,500 Americans every day in recent weeks. Amid this once-in-a-century crisis and recognizing the continued needsofState, local, and Tribal ‘governments to contain the spread and mitigate the effectsofthe COVID-19 pandemic in their ‘communities, the American Rescue Plan Act established the $350 billion Coronavirus State and Local Fiscal Recovery Funds (*“SLFRF funds”). As you know, recipientsofSLFRF funds are required to comply with the terms and conditionsestablished by the American Rescue Plan Act for use of such funds. We are concernedthattwo recently created Arizona grant programs undermine evidence-based efforts 10 stop the spreadof COVID-19. We understand that the StateofArizonahas established a grant program forschool districts with SLFRF funds that is conditioned on,amongother things, the recipient school districts notrequiring the useofface coverings during instructional hours and on school property.” In addition, we understand that the State ofArizona has establisheda school voucher program with SLFRF funds toprovide up to $7,000 perstudent to families fortition orother educational costs ata new school that doesnot require face coverings ifthe students current school is requiring the useofface coverings during instructional hours and on school property. *Sections 602o603 ofthe Social Security Act, asaddedby section9901 oftheAmerican Rescue Plan Actof 2021,Pub. L. No. 117-2(Mar. 1,2021), * OnMay 17,2021,Treasury's InterimFina Ruleimplementing sections602and603ofthe Social Security Act (“Ac”),as added bytheAmerican Rescue Plan Act became effective (36 Fed. Reg. 26756(May 17,2021). On May 21,2021,prior toreceivingpaymentof$2.091,413,74580,theState ofArizonaprovidedacrificationwith respect thepayment madepursuanttosection602(b)3)(C)oftheAct that provides, inpar hat he Stat of Arizona will use fundsin compliancewith section 602(0)ofthe ActandTreasury'sregulationsimplementingthis section.2Education Plus-UpGrant Program,avaiableatcCivi -Grants Network, Program termsexemptcompliance with entersfor Disease ControlndPreventiontransportationguidelines. © ArizonaCOVID-19Educational RecoveryBenefit,availabeatCivis rants Network. Programtermsexempt compliance withCenters forDiscaseControland Preventiontransportationguidelines.