NATaT Highlights and Updates

2023 NATaT Highlights and Updates

Click here for the 2023 NATaT Highlights and Updates as PDF

Click here for the 2023 NATaT Year in Review and Legislative Updates PDF

Infrastructure

Transportation

USDOT’s Definition of “Rural”

A NATaT priority is to encourage the USDOT to prioritize funding projects in rural areas. The Bipartisan Infrastructure Law created a new grant program, the Rural Surface Transportation Grant program, that defined rural as an area that is outside an urbanized area with a population of less than 200,000. NATaT brought this issue to the attention of Members of Congress, and in response, Representatives Brad Finstad (R-MN) and Pete Stauber (R-MN) introduced the Rebuilding Rural Roads Act (H.R. 3002). This bill would reduce the population definition of rural area to 20,000 from 200,000 to be eligible for DOT’s Rural Surface Transportation Grant program. The two Members subsequently introduced the Protecting Infrastructure Investments for Rural America Act (H.R. 5437) that made additional improvements to the Rural Surface Transportation Grant Program, including a small community set aside, where “small community” is defined as an area that is outside an urbanized area and that has a population of 5,000 or less.

Off-System Bridges

One of NATaT’s top priorities is ensuring that bridges that are not on the federal highway system (i.e., “off-system bridges”) have access to federal funding support. Historically, we advocated to preserve a 15% set-aside for off-system bridges, and the transportation reauthorization increased that set-aside to 20 percent. However, concern was raised that many of our local bridges do not meet the definition of a “bridge” but are instead considered a “culvert” and thereby not eligible for federal assistance.

Based on advocacy during the NATaT fly-in and subsequent meetings with the Minnesota Association of Townships, Rep. Michelle Fischbach is interested in drafting and introducing a bill that will carve-out of the off-system bridge program to include structures that are 10 to 20 feet, which states must distribute through a competitive process.

Federal regulations define a bridge as a structure having a span greater than 20 feet (23 CFR 661.17(a)(1)).

Truck Weight and Length

There has been significant work done in the past year opposing efforts to increase the national truck weight limit on the federal highway system, and efforts to allow longer, wider double- and triple-trailer trucks on federal highways. NATaT has been very engaged with the Coalition Against Bigger Trucks to communicate our opposition to this effort. This was a priority issue during our annual fly-in and we provided state and congressional district data on how heavier, bigger trucks would impact local bridges. There was a movement to include provisions in the annual transportation appropriations bill, the Farm Bill, and passing stand-alone legislation. To date, every attempt to include truck size and weight provisions in a bill has failed.

On August 9, NATaT sent a letter to leadership on the House and Senate appropriations and agriculture committees expressing our opposition. A copy of the letter was sent to all House and Senate offices. We signed a joint letter to the agriculture committee leadership on November 16 thanking them for passing a “clean” farm bill extension that did not include any truck size and weight provisions.

Additional Legislative Efforts

NATaT worked with Senator John Fetterman (R-PA) and supported the introduction of The Building Safer Streets Act (S. 3246), which is aimed at improving street infrastructure and preventing the loss of lives on unsafe streets. The bill addresses the distinct need for assistance in smaller communities and directs the Federal Highway Administration to distinguish between rural, suburban, and urban needs. It also adjusts the Safe Streets for All grant program to address the specific needs of small and rural communities.

Farm Bill

NATaT communicated our Farm Bill priorities to Members of the House and Senate Agriculture Committees. More specifically, the organization supports a robust Rural Development title that funds the programs that benefit our members. Congress recently passed a one-year extension of the Farm Bill, funding those programs at current levels through September 30, 2024.

Additional Legislative Efforts

NATaT worked with Senator Bob Casey (D-PA) and supported the introduction of the Rural Partnership and Prosperity Act to advance economic development in rural communities and help them overcome barriers to obtaining federal funding and resources. Senators Casey and Deb Fischer (R-NE) recognized that many rural communities are unable to compete for federal investment opportunities because of a lack of adequate funding, capacity, and staffing. The bill creates grant programs providing multiyear, flexible awards to communities to be used to address urgent needs, including but not limited to affordable childcare, housing, and job training; provide technical assistance grants to help rural communities navigate existing federal funding opportunities and ensure they’re getting their fair share of private and federal investment; and improve supportive services offered by the federal government to rural communities.

The Farm Bill is the likely legislative vehicle to move this legislation.

Telecommunications and Cybersecurity

National Telecommunications and Information Administration (NTIA) Broadband Listening Session

NATaT and several of its state associations joined a coalition of almost 300 broadband experts, internet service providers (ISPs), community leaders, and consumer advocates to express concerns about the NTIA’s letter of credit (LOC) obligation in the Broadband Equity Access and Deployment (BEAD) grant program. In a September letter to NTIA leadership, the coalition warned that the LOC obligation would make it more difficult for smaller broadband providers (e.g., subgrantees) to participate in the program. In November, NTIA granted a conditional waiver that allows subgrantees to obtain LOCs from credit unions in lieu of banks or to use performance bonds in lieu of LOCs. The waiver also allows states to reduce the amount of the LOC obligation below 25 percent over time or reduce the amount of the performance bond below 100 percent over time, upon a subgrantee meeting deployment milestone specified by the state.

Panel discussion on Cybersecurity Essentials for Towns and Townships: Managing and Mitigating Risks and Vulnerabilities

At the May 2023 Legislative Fly-In, NATaT led a panel discussion on the proactive steps local governments can take to strengthen their cybersecurity defenses. The discussion focused on current and potential future cyber-attack vectors and the potential impacts on towns and townships and what federal policymakers are doing to help local governments become more cybersecurity resilient.

David Hoover, Moderator, NATaT Legislative and Policy Manager
Robert Nadeau, Chief of Partnerships, Stakeholder Engagement Division, Cybersecurity and Infrastructure Security Agency (CISA)
Tony Bishop, Senior Advisor, Office of the National Cyber Director, Executive Office of the President (invited)
Laura Mateczun, Research Assistant, School of Public Policy, University of Maryland, Baltimore County
Vince Crisler, Chief Strategy Officer, Celerium

Broadband Legislative Advocacy

NATaT supported and/or provided feedback on broadband- and cybersecurity-related legislation introduced during the 118^th Congress and worked to drive co-sponsorship of these bills, including:

Protecting Community Television Act (S. 340/H.R. 907), which would amend the Communications Act of 1934 to reverse the Federal Communication Commission’s (FCC) 2019 order requiring that cable-related, in-kind contributions be subjected to the statutory five percent franchise fee cap.
Broadband Incentives for Communities Act (H.R. 1241), which would create a grant program under the NTIA to give communities new resources to train and hire employees in the permitting departments, hire additional human resources, and purchase updated technology and equipment that would facilitate the permitting process to help speed the deployment of new broadband infrastructure.

Eliminating Barriers to Rural Internet Development Grant Eligibility (E-BRIDGE) Act (H.R. 1752), which would make it easier for rural and impoverished communities to pursue broadband projects through Economic Development Administration grants, including difficult last-mile efforts that often delay rural broadband deployment. The bill also ensures that local communities can partner with the private sector in carrying out broadband projects and gives communities more flexibility in complying with their funding match requirements.
Next Generation 9-1-1 Act (H.R. 1784), which would amend the National Telecommunications and Information Administration Organization Act to provide for further deployment and coordination of Next Generation 9–1–1.
Reforming Broadband Connectivity Act (S.975/H.R. 1812), which would direct the FCC to initiate a rulemaking process to reform the contributions mechanism that funds the Universal Service Fund (USF). The contributions base is dramatically declining as customers migrate from traditional telecom services to broadband and other services that contribute at lower rates or not at all.

Volunteer First Responders

Volunteer Responder Housing Act (H.R. 4787/S. 1988)

NATaT worked with Senator Tammy Baldwin’s office (D-WI) and Dan Kildee (D-MI) to reintroduce this measure and help secure cosponsors in the 118^th Congress. The bill would make volunteer fire and EMS personnel eligible for assistance under the Department of Agriculture’s Single Family Housing Guaranteed Loan Program and the Department of Housing and Urban Development Good Neighbor Next Door Sales Program.

Neither measure has passed the House nor Senate.

Unfunded Mandates and Federal Preemption

Waters of the U.S.

On August 29, 2023, the U.S. Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (Corps) (referred to collectively as “the agencies”) announced a new final rule amending a previous final rule finalized in January 2023, which sought to more clearly define and regulate “waters of the United States” (WOTUS) protected under the Clean Water Act (CWA). The new final rule will conform with the U.S. Supreme Court’s May 2023 decision in the case Sackett vs. EPA. The agencies published the new final WOTUS rule in the Federal Register on September 8, 2023, which is the new rule’s effective date. Litigation over the Biden administration’s definition of WOTUS resumes in several federal district courts around the country now that the final rule has been published in the Federal Register. Notably for NATaT, the new rule keeps the following exclusions from WOTUS:

Prior converted cropland
Waste treatment systems
Ditches
Artificially irrigated areas
Artificial lakes or ponds
Artificial reflecting pools or swimming pools
Waterfilled depressions
Swales and erosional features

Department of Labor Overtime Rules

The Fair Labor Standards Act (FLSA) requires covered employers to pay employees a minimum wage and, for employees who work more than 40 hours in a week, overtime premium pay of at least 1.5 times the employee's regular rate of pay. However, the FLSA exempts from the minimum wage and overtime pay requirements “any employee employed in a bona fide executive, administrative, or professional capacity.” The exemption is commonly referred to as the “white-collar” or executive, administrative, or professional (EAP) exemption.

The regulations implementing the EAP exemption require that each of the following three tests must be met: (1) the employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed (the salary basis test); (2) the amount of salary paid must meet a minimum specified amount (the salary level test); and (3) the employee's job duties must primarily involve executive, administrative, or professional duties as defined by the regulations (the duties test).

On September 8, 2023, the U.S. Department of Labor (DOL) issued a proposed rule that alters the requirements for “white collar” exemptions under FLSA. The proposed rule includes the following changes:

Increase the EAP minimum salary level from $684 per week (or $35,568 per year) to $1,059 per week (or $55,068 per year). U.S. employees would need to earn $55,068 or more per year to be exempt from overtime pay. According to the DOL, this 64.5 percent increase would impact 3.6 million workers who are currently exempt from overtime eligibility.
Automatically update earnings thresholds every three years so they keep pace with changes in worker salaries. (Note, these automatic updates could go up or down depending on the earnings environment.) The EAP would be adjusted to remain at the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census region (currently the South).

The current minimum salary level for exempt employees is $684 per week (or $35,568 annually), which was most recently set in 2020 during the Trump administration.

Federal Funding

Fiscal Year 2024 Budget and Appropriations

NATaT supports funding for the following programs in the annual budget and appropriations processes: U.S. Department of Agriculture’s Rural Development programs, Federal Emergency Management Agency’s assistance to firefighter grant programs, the Economic Development Administration (EDA), and the U.S. Census Bureau. These programs are funded in the Agriculture Appropriations bill, Homeland Security Appropriations bill, and Commerce Appropriations bill, respectively. NATaT sends letters of support for these programs to House and Senate appropriators every year.

On November 16, 2023, President Biden signed into law a continuing resolution (Further Continuing Appropriations and Other Extensions Act, 2024) that keeps federal agencies funded under four appropriations bills open through January 19 and through February 2 for the remaining eight bills. Notable to NATaT, the Departments of Agriculture and Transportation are funded through January 19 and FEMA, EDA and the Census Bureau are funded through February 2.

The CR also included a Farm Bill extension through September 30, 2024, and extension of the National Flood Insurance Protection Act through February 2, 2024, both of which were set to expire at midnight on November 17, 2023.

Tax

Municipal Bonds

NATaT continues to support the preservation of tax-exempt municipal bonds and has advocated to restore local government authority to advance refund tax-exempt bonds (authority was eliminated in the Tax Cuts and Jobs Act of 2017). A provision to restore advance refunding has been included in various bills since 2017 but has not been part of any bill that has become law.

NATaT has also monitored and reported on Congressional efforts to reinstate the state and local tax (SALT) deduction.

Parity for Volunteer Drivers

NATaT supports efforts to increase the federal volunteer driver mileage reimbursement (14¢/mile) to equal the federal business driver mileage reimbursement (65.5¢/mile). Legislation was introduced in both the House and Senate to address this issue. Congressman Pete Stauber (R-MN) introduced the Volunteer Driver Tax Appreciation Act of 2023 (H.R. 3032) on April 28, 2023, and Senator Amy Klobuchar (D-MN) introduced the same bill (S. 3020) on October 4. The legislation increases the federal volunteer driver mileage reimbursement to that of the federal business driver.

Other Advocacy and Administrative Efforts

Successful NATaT Fly-In that included:

Meeting at the White House Office of Intergovernmental Affairs Office for Board Members
Congressman Glen “GT” Thompson, Chairman, House Agriculture Committee
Charles Small, Deputy Assistant Secretary for Intergovernmental Affairs, US Department of Transportation
Ryan Berni, White House Senior Advisor for Infrastructure Implementation
Cybersecurity Essentials for Towns and Townships: Managing and Mitigating Risks and Vulnerabilities panel discussion (detailed above)
Congressional meetings

NATaT website updates, including Legislative Tracker, which is updated monthly.

Shared relevant grant and technical assistance opportunities.

Working partnerships with federal agencies and national groups on issues of interest to NATaT.

NATaT Weekly Legislative Updates provide a Congressional Outlook for the week ahead and review of federal action on issues of interest to NATaT that occurred the previous week.

The Interconnect is a monthly newsletter that focuses on federal actions related to broadband, cyber, and tech innovation.

Special legislative reports (e.g., Preview of the 118^th Congress, Debt Limit Deal, Administration’s Unified Agenda, WOTUS, DOL Overtime Rule, Inflation Reduction Act’s Clean Energy Tax Credits).

Breaking news reports on issues/announcements of interest to NATaT.

Organized and facilitated monthly conference calls for NATaT Board of Directors.

Organized and facilitated board meetings.

Drafted articles for association member magazines on federal legislative and regulatory topics.

2023 Year in Review and Legislative Updates

Transportation

NATaT had four priorities in the surface transportation reauthorization, which was included in the recently passed Infrastructure Investment and Jobs Act (IIJA).

Enact a six-year surface transportation bill that directs more federal funds to towns and townships and allows those funds to be used on local roads.

While the bill is a five-year authorization, it still allows for the stability NATaT desires by requesting a six-year bill. There are several programs included in the bill that would get more federal transportation funds directed to towns and townships.

Prior to passage of the IIJA, Federal transportation funds could not be used for projects on roads functionally classified as local roads. NATaT, individually, worked with Rep. Angie Craig’s office to introduce a bill that would allow communities with populations under 5,000 to use federal funds on local roads. That bill was included in the transportation authorization bill (which is in the bipartisan infrastructure package awaiting a House vote). Current bill language allows communities with a population under 50,000 to access funds for local roads, but we are working to keep that population limit at status quo – 5,000 or less. This is the first time EVER that federal transportation dollars can be used for local road maintenance and related projects.

The IIJA increases Transportation Alternatives (TA) funding, setting it at 10% of total STBG funds each fiscal year. It also increases from 50% to 59% the portion of TA funds that must be suballocated to areas of the State based on population. Regarding the Federal share, the law:

provides for a Federal share up to 100%;
allows Highway Safety Improvement Program funds to be used toward the non-Federal share; and
allows non-Federal share requirements to be met on an aggregate basis instead of by project.

There is a new set aside for projects in rural areas. Not more than 15 percent of a state’s STBG allocation can be used for eligible STBG projects on local roads, rural minor collectors, ice roads, or seasonal roads. Funds can be used for maintenance of these roads, and up to 5% for certain barge landing, dock and waterfront infrastructure projects.

Finally, IIJA created a new rural surface transportation grant program to provide grants, on a competitive basis, to eligible entities to improve and expand the surface transportation infrastructure in rural areas. The goals of the program include increasing connectivity, improving the safety and reliability of the movement of people and freight, and generatingregional economic growth and improving quality of life.

Increase federal assistance for off-system bridges.

The law creates a new formula program with increased funds ($27.5B) for the bridge program and increases the off-system bridge set-aside from 15 percent of the state’s total bridge allocation in fiscal year (FY) 2009 to 20 percent of that allocation. It also changes the definition of “off-system bridge” to a highway bridge or low water crossing located on a public road, other than a bridge or low water crossing on a Federal-aid highway.

IIJA creates a new grant program funded at $9.2B to assist state, local, federal, and tribal entities in rehabilitating or replacing bridges, including culverts, and eligibility for large projects and bundling of smaller bridges. Under this program, the minimum grant amount for a large project is not less than $50 million; and the minimum grant amount for any other eligible project is $2.5 million.

IIJA also made changes to the National Highway Performance Program by adding new eligible projects, one of which is protective features (related to mitigating risk of recurring damage or the cost of future repairs from extreme weather events, flooding, or other natural disasters) on Federal-aid highways and off-system bridges.

Ensure that any move to a vehicle-miles traveled (VMT) fee to help fund transportation infrastructure considers the lack of transportation alternatives for rural communities.

The IIJA establishes a pilot program to demonstrate a national motor vehicle per-mile user fee. In carrying out the pilot program, the Secretary, in coordination with the Secretary of the Treasury, shall provide different methods that volunteer participants can choose from to track motor vehicle miles traveled, solicit volunteer participants from all 50 States, the District of Columbia, and the Commonwealth of Puerto Rico, ensure an equitable geographic distribution by population among volunteer participants, and include commercial vehicles and passenger motor vehicles.

Restrict the flow of larger, heavier trucks on our roads and bridges.

There are no provisions included in the bill that would lift weight and/or length restrictions in any NATaT member state or the National Interstate Highway System as a whole.

IIJA Follow Up

On December 1^st, the Federal Highway Administration (FHWA) issued a Request for Information asking for comments on (i) Potential opportunities and challenges for implementing new IIJA programs; (ii) potential opportunities and challenges for implementing existing programs modified by the IIJA; (iii) solutions or suggestions as to how FHWA might implement the IIJA; (iv) necessity for additional guidance, FAQs, or program changes; and (v) areas requiring new and continued research.

This RFI gives NATaT the opportunity to communicate to the FHWA the background/purpose of the original bill to allow communities under 5,000 population to use STBG funds for local road projects. We can recommend priority be given to this smaller subset over the communities with a population between 5,000 and 50,000. Comments are due December 17^th.

NATaT staff is conducting research on federal transit funding and data on vehicle miles traveled by rural drivers as we begin our advocacy efforts for the next reauthorization.

Finally, TFG staff is compiling a guidebook of all programs – new and existing – funded in the IIJA and will provide that guidebook to NATaT.

Broadband/Telecommunications

Broadband Regulatory Filings

NATaT joined comments submitted by the National Association of Telecommunications Officers and Advisors opposing two petitions for declaratory ruling filed pursuant to section 253 of the 1996 Telecommunications Act, which authorizes the Federal Communications Commission (FCC) to preempt state and local laws that present barriers to market entry. NATOA’s comments made clear the Commission could not allow section 253 petitions to be used as a backdoor for issuing sweeping preemptions of local governments’ rights of way ordinances and fees. The Bluebird petition was withdrawn and the Mediacom petition is still under review.

Broadband Legislative Advocacy

NATaT supported and/or provided feedback on numerous broadband-related bills introduced during the 117^th Congress, including:

The Broadening Online Opportunities through Simple Technologies (BOOST) Act (HR 1362), which would enable rural homeowners and primary lessees to claim a $300 tax credit after purchasing a mobile hotspot or a signal booster to increase the strength or range of their wireless service.
The Community Broadband Act (HR 1631), which would prohibit state laws that ban or limit broadband systems administered by municipalities, co-ops, or public-private partnerships.
The Middle Mile Broadband Deployment Act (S. 2473) would create a program within the National Telecommunications and Information Administration to award grants for middle-mile infrastructure.
The Broadband Reform and Investment to Drive Growth in the Economy (BRIDGE) Act
(S. 2071), which would provide $40 billion to States, Tribal Governments, and U.S. Territories to ensure all Americans have access to affordable, high-speed broadband. It would prioritize unserved, underserved, and high-cost areas with investments in “future proof” networks.

NATaT also supported and provided feedback on Congressional efforts to update federal standards for high-speed broadband above the current definition of 25 Mbps download and 3 Mbps upload.

Support for Volunteer First Responders

Volunteer Responder Incentive Protection Act

NATaT worked with the National Volunteer Fire Coalition, Congressional Fire Services Institute, and International Association of Fire Chiefs to secure a permanent tax benefit for volunteer fire and EMS personnel. That bill allows tax-free property tax benefits and up to $600 tax-free payments per year to volunteer first responders. This will be used as a recruitment and retention tool for the dwindling pool of volunteers. This tax benefit was in law from 2007 to 2010, and it took ten years of advocacy to reinstate and make permanent.

Length of Service Award Program (LOSAP)

NATaT worked with the organizations listed above to pass legislation that simplifies the administration of LOSAPs in the Internal Revenue Code so that more volunteer departments can use these pension-like benefits as a recruitment and retention tool. We also helped change the law related to LOSAPs that allows the top-level contribution amount to LOSAPs be adjusted to inflation.

Volunteer Responder Housing Act (HR 4377/S 2316)

NATaT worked with Senator Tammy Baldwin’s office and Rep. Cindy Axne’s office to re-introduce this measure and help secure cosponsors. The bill would make volunteer fire and EMS personnel eligible for assistance under the Department of Agriculture Single Family Housing Guaranteed Loan Program and the Department of Housing and Urban Development Good Neighbor Next Door Sales Program.

Neither measure has passed the House nor Senate.

Retention and Recruitment Guide

The National Volunteer Fire Council is working with the US Fire Administration on a retention and recruitment guide for volunteer emergency services and requested NATaT’s input. NVFC will share that guide upon completion.

Other Priorities

Coronavirus Relief - American Rescue Plan Act (ARPA) inclusion of federal funding for all units of local government.

NATaT worked in close coordination with the National Association of Counties, National League of Cities, US Conference of Mayors, and Government Finance Officers Association to ensure all units of local government – large and small – had access to ARPA’s Coronavirus Local Fiscal Relief Fund (CLFRF). Smaller local governments – or non-entitlement units of local government (NEU) – will receive their allocations through their respective states but report to the Department of Treasury. NATaT hosted a webinar for members to explain in detail what the funding can be used for and how to access those funds. NATaT staff has fielded queries on ARPA spending from our state associations and individual members.

Not only did NATaT play an integral role in assuring all local governments have access to ARPA funds, but we continue to work with Treasury staff to ensure the requirements to apply for funds and report how those funds are used are simplified and appropriate for our smaller NEUs that do not have experience managing federal dollars. NATaT communicated concerns our members have about the detailed information required to access ARPA funds to Treasury. They are no longer requiring personal information through ID.me and are now looking for a more user-friendly option. NATaT communicated to Treasury the need to simplify reporting requirements for NEUs, including holding Treasury webinars on reporting requirements. We are now working in partnership with Treasury to make sure the outreach is clear and concise and done in a way that makes our smaller communities more comfortable receiving and spending this money. Our last call with Treasury was on October 8, 2021, and they’ve asked for our guidance in working with NEUs moving forward.

Three of NATaT’s member states – Ohio, Illinois, North Dakota – are categorized as “Weak Minor Civil Divisions” or “MCDs” and therefore not guaranteed allocations. NATaT staff worked directly with Members of Congress from Ohio and Illinois to ensure townships in those states have access to ARPA funds. We drafted support letters for Members and communicated directly to Treasury.

ARPA Flexibility Bill

NATaT drafted comments to Treasury on easing restrictions to how CLFRF funds can be spent. Treasury has not yet issued its final guidance, but on October 19^th, the Senate passed S. 3011, the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act with little to no fanfare. This bipartisan legislation provides additional flexibility for spending a community’s ARPA allocation. On October 26^th, Rep. Dusty Johnson (R-SD) and 31 bipartisan Members introduced the House companion bill H.R. 5735.

This legislation would streamline and strengthen ARPA in three ways:

Recipients can allocate up to $10 million of ARPA funds for government services.
Allows $10 million or 30% of the total ARPA allocation, whichever is higher, to new infrastructure-related activities. More specifically, the bill lists 27 infrastructure-related activities that would be eligible under the law.
Provides the use of funds for “emergency relief from natural disasters or the negative economic impact of natural disasters.”

NATaT issued an advocacy alert and drafted letters of support for Members of Congress and House Leadership. To date, HR 5735 has 123 cosponsors, including Members from each NATaT-member state but North Dakota.

2020 Census

NATaT has worked closely with the US Census Bureau’s Office of Congressional and Intergovernmental Affairs to ensure our members had the necessary timeline and information to ensure an accurate Census count. We are in contact with Census staff to answer specific inquiries from the Board and/or our members and organized a November 19 U.S. Census Data Training Webinar, which included an overview of 2020 Decennial and American Community Survey data.

NATaT also drafted a memo on “Differential Privacy” and the impact on rural geographies of the Census Bureau’s use of its disclosure avoidance system (DAS) that prevents Census responses from being linked to specific individuals.

Waters of the US

The Biden Administration plans to re-write the Waters of the US (WOTUS) rule, which defines the bodies of water under the Clean Water Act’s jurisdiction. NATaT is part of an intergovernmental working group led by the EPA and the US Army Corps of Engineers and provided preliminary comments on the new rule on September 3^rd. Those comments included the provisions NATaT wants included in the final rule and highlights the more problematic provisions of the rule (most notably, ditches and ephemeral streams, which were specifically excluded from CWA jurisdiction under the Trump Administration’s Navigable Waters Protection Rule on WOTUS).

An interim WOTUS rule was proposed by the EPA and Corps on November 18^th. That interim rule interprets WOTUS to mean the waters defined by a collection of Corps and EPA regulations referred to as the “1986 regulations,” with amendments to reflect the agencies’ interpretation of the statutory limits on the scope of WOTUS as informed by two Supreme Court decisions. The agencies say in the proposed rule that recent court decisions have reinforced the need for a stable and certain definition of WOTUS, noting that federal district courts in both Arizona and New Mexico have vacated the Navigable Waters Protection Rule on WOTUS.

NATaT is poised to engage with the EPA and Corps as the formal rulemaking process continues.

Tax-Exempt Municipal Bonds and Advance Refunding

NATaT continues to support the preservation of tax-exempt municipal bonds and has advocated to restore local government authority to advance refund tax-exempt bonds (authority was eliminated in the Tax Cuts and Jobs Act of 2017). A provision to restore advance refunding has been included in various bills over the past four years but has not been part of any bill that has become law.

Fiscal Year 2022 Budget and Appropriations

On December 3, Congress passed a stopgap appropriations bill or “Continuing Resolution” to fund the federal government at FY 2021 levels through mid-February 2022, thereby averting a government shutdown.

Other Advocacy and Administrative Efforts

Successful NATaT Virtual Fly-In.

Participated in the Small Town America Civic Volunteer Award program.

Working partnerships with federal agencies and national groups on issues of interest to NATaT.

NATaT Weekly Legislative Updates provide a Congressional Outlook for the week ahead and review of federal action on issues of interest to NATaT that occurred the previous week.

The Interconnect is a biweekly newsletter that focuses on federal actions related to broadband, cyber, and tech innovation.

Shared relevant grant opportunities.

Special legislative reports (e.g., IIJA, ARPA, Preview of the First 100 Days of the Biden Administration).

Breaking news reports on issues/announcements of interest to NATaT.

Organized and facilitated monthly conference calls for NATaT Board of Directors.

Organized and facilitated board meetings.

Hosted webinars for NATaT members on ARPA funding and the Census.

Participated in NATaT-member State Association meetings (Ohio, Pennsylvania, Illinois).

Drafted articles for association member magazines on federal legislative and regulatory topics.

Maintained and regularly updated NATaT website.

2022 NATaT Highlights and Updates

Infrastructure

Transportation

Off-System Bridges

In March 2022, NATaT President Mike Koles and Federal Director Jennifer Imo participated in a roundtable discussion hosted by the White House Office of Intergovernmental Affairs to discuss implementation of the transportation authorization law. That call was led by Mitch Landrieu, the White House Infrastructure Coordinator appointed by President Biden to oversee implementation of the infrastructure law, including programs funded through transportation authorization. Landrieu was unaware of the definition’s impact on many of our towns and townships’ access to federal bridge funding. We prepared a memo to demonstrate the need to adjust the federal definition to allow federal assistance to shore up certain bridges and culverts in our towns and townships. That memo included examples from three of our member states – Wisconsin, Michigan, and Minnesota. It lays the groundwork for our advocacy efforts with the US Department of Transportation in advance of the next authorization, and perhaps as bridge funds are allocated under the current authorization.

Telecommunications and Cybersecurity

National Telecommunications and Information Administration (NTIA) Broadband Listening Session

NATaT organized an NTIA Broadband Program Overview and Listening Session to provide feedback to the agency as it drafted the Notice of Funding Opportunities (NOFOs) for the Bipartisan Infrastructure Law Broadband Grant Programs. NTIA speakers provided an overview of the four broadband grant programs and solicited feedback from session participants. Prior to the event, NATaT prepared a briefing packet for members that included questions and policy recommendations.

NATaT Town Hall Broadband Panel

NATaT organized the “Connecting Your Community” panel discussion for the NATaT Virtual Town Hall, which brought together panelists from the National Rural Telecommunications Cooperative, the Pew Charitable Trust, and the Institute for Local Self Reliance, to provide insights on how NATaT members could best engage with their state broadband offices, effectively collaborate with public and private entities to deploy broadband to unserved and underserved areas, and how to best navigate the variety of federal funding opportunities to address the digital divide.

Broadband Legislative Advocacy

NATaT supported and/or provided feedback on broadband- and cybersecurity-related legislation introduced during the 117^th Congress and worked to drive co-sponsorship of these bills, including:

The State and Local Government Cybersecurity Act (S. 2520), which authorizes the Department of Homeland Security (DHS) to coordinate with state, local, tribal, and territorial governments to enhance the cybersecurity of their information systems by conducting cybersecurity exercises, providing training, and notifying them of cybersecurity threats. The bill became law in June 2022.
The Community Broadband Act (S. 1460/H.R. 1631), which would ensure that local governments have the tools they need to address broadband equity in their communities by prohibiting state laws that ban or limit broadband systems administered by municipalities, co-ops, or public-private partnerships.
Protecting Community Television Act (S. 3361/H.R. 6219), which would amend the Communications Act of 1934 to reverse the Federal Communication Commission’s (FCC) 2019 order requiring that cable-related, in-kind contributions be subjected to the statutory five percent franchise fee cap.
Eliminating Barriers to Rural Internet Development Grant Eligibility (E-BRIDGE) Act (S. 1695), which would make it easier for rural and impoverished communities to pursue broadband projects through Economic Development Administration grants, including difficult last-mile efforts that often delay rural broadband deployment. The bill also ensures that local communities can partner with the private sector in carrying out broadband projects and gives communities more flexibility in complying with their funding match requirements.

Volunteer First Responders

Volunteer Responder Incentive Protection Act

As you know, NATaT worked with the National Volunteer Fire Council, Congressional Fire Services Institute, and International Association of Fire Chiefs to secure a permanent tax benefit for volunteer fire and EMS personnel in the Tax Cuts and Jobs Act of 2017. Now, any property tax benefits and payments up to $600 are tax free for volunteer first responders. This tax benefit was in law from 2007 to 2010, and it took ten years of advocacy to reinstate and make permanent. However, NATaT sought direct, clear guidance from the IRS to ensure volunteer fire companies were comfortable using these benefits. That guidance was received by NATaT staff, and a detailed memorandum was distributed in January 2022.

Volunteer Responder Housing Act (HR 4377/S 2316)

NATaT worked with Senator Tammy Baldwin’s office and Rep. Cindy Axne’s office to re-introduce this measure and help secure cosponsors in the 117^th Congress. The bill would make volunteer fire and EMS personnel eligible for assistance under the Department of Agriculture’s Single Family Housing Guaranteed Loan Program and the Department of Housing and Urban Development Good Neighbor Next Door Sales Program.

Neither measure has passed the House nor Senate.

Census

For background - According to the Census Bureau, “Legally defined county subdivisions are referred to as minor civil divisions (MCDs). MCDs are the primary divisions of a county. They comprise both governmentally functioning entities — that is, those with elected or appointed officials who provide services and raise revenues — and nonfunctioning entities that exist primarily for administrative purposes, such as election districts.”

Twenty states have MCDs that function as general-purpose governmental units. Those 20 states were divided into two categories: strong MCDs and weak MCDs. Three NATaT-member states were categorized as weak MCDs and were therefore excluded from receiving direct ARPA allocations. The states of Illinois, North Dakota, and Ohio were classified as weak MCDs because, according to the Census Bureau, they perform less of a governmental role and are less well known locally, even though they are active governmental units.

NATaT worked with the Census Bureau to change how it differentiated between strong and weak Minor Civil Divisions. As a direct result of our advocacy, there are no longer “strong” or “weak” MCDs – all our member states are simply designated as Minor Civil Divisions.

Federal Funding

Fiscal Year 2023 Budget and Appropriations

Federal agencies are funded at fiscal year (FY) 2022 levels through December 16 when the current stopgap appropriations bill or “Continuing Resolution” expires.

American Rescue Plan Act

NATaT staff served as a conduit between the Department of Treasury and our state associations/individual members as questions arose around accessing ARPA’s local fiscal recovery funds, the allowable uses of those funds, and other related inquiries and issues.

Treasury staff introduced NATaT staff to the Office of Evaluation Sciences (OES) at the General Services Administration (GSA) to evaluate the experience of smaller local governments (non-entitlement units of local government (NEUs)) with Treasury’s reporting and compliance process. As part of this study, the OES set up a virtual meeting with NATaT Board members, state association staff, and individual NEUs to discuss their experience accessing, spending, and reporting on their local fiscal recovery funds. On December 6, GSA informed NATaT staff that the evaluation is complete and can be viewed here (or https://oes.gsa.gov/projects/slfrf-tribal-govs-neus/.) GSA said that NATaT’s shared experiences and perspectives were “invaluable in creating a comprehensive picture of participants' experience with the program.”

Finally, due to a lack of certain administrative funds, Treasury had to close its call center operations and further ramp down staff support for the email contact center. There were efforts to include language in a year-end omnibus spending package that would allow Treasury to use administrative funds assigned to less time-intensive programs to provide the personalized support. It is unclear at this time if that effort will prevail.

Tax

NATaT has also monitored and reported on Congressional efforts to reinstate the state and local tax (SALT) deduction.

Unfunded Mandates and Federal Preemption

Waters of the US

On February 7, 2022, NATaT submitted comments to the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) detailing our general views and concerns on revising the definition of “waters of the United States” (WOTUS) under the federal Clean Water Act (CWA).

This is the third Administration to develop a WOTUS Rule that describes how the agencies will identify waters subject to jurisdiction under the Clean Water Act and implement the U.S. Supreme Court’s decisions in Solid Waste Agency of Northern Cook County (SWANCC) v. U.S. Army Corps of Engineers and Rapanos v. United States concerning the extent of waters covered by the Act.

In the courts, the Supreme Court of the United States (SCOTUS) on October 3^rd heard oral arguments in Sackett v. EPA, a case that many CWA experts argue could define what WOTUS means under the CWA.

The outcome of the case could impact if another WOTUS rulemaking could commence – this time under the Biden Administration. Currently, the Administration is finalizing their proposed rule reinstating the 1986 CWA rule and guidance (adjusted for past Supreme Court rulings) as the interim benchmark for the EPA and the Corps to use in determining their jurisdiction over WOTUS under the CWA since the Trump Administration’s Navigable Waters Protection Rule defining WOTUS was thrown out.

The SCOTUS is set to determine whether the U.S. Court of Appeals for the 9th Circuit set forth the proper test for determining whether wetlands are WOTUS under the CWA. The lower court referenced Justice Kennedy’s “significant nexus” test of jurisdictional waters, as opposed to the late-Justice Scalia’s “relatively permanent continuous surface flow” test. The SCOTUS decision in Sackett is expected sometime in 2023.

NATaT continues to engage with the EPA and Corps as the formal rulemaking process continues.

Other Advocacy and Administrative Efforts

Successful NATaT Virtual Fly-In that included:

Remarks from DOT Secretary Pete Buttigieg
Presentation by Xochitl Torres Small, USDA’s Under Secretary for Rural Development
Discussion about USDA’s Community Facilities Loan and Grant Program
“Connecting Your Communities” panel discussion (detailed above)
Congressional meetings

Breaking news reports on issues/announcements of interest to NATaT.

Organized and facilitated monthly conference calls for NATaT Board of Directors.

Organized and facilitated board meetings.

Drafted articles for association member magazines on federal legislative and regulatory topics.

www.natat.org website, association logo, and increased website security.

Two-day Grants 101 webinar and training session led by TFG’s Grants Director, Heidi Schott.

Provided recommendations to support efforts to simplify the federal grants process.

Shared relevant grant opportunities.

Working partnerships with federal agencies and national groups on issues of interest to NATaT.

NATaT Weekly Legislative Updates provide a Congressional Outlook for the week ahead and review of federal action on issues of interest to NATaT that occurred the previous week.

The Interconnect is a biweekly newsletter that focuses on federal actions related to broadband, cyber, and tech innovation.

Special legislative reports (e.g., IIJA Grant Opportunities, Inflation Reduction Act, 2022 Lame Duck Preview and Midterm Results).

December 12th & 13th 2022