The Coronavirus State and Local Fiscal Recovery Funds provide a substantial infusion of resources to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery.
FUNDING OBJECTIVES
Treasury is launching this much-needed relief to:
Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control
Replace lost revenue for eligible state, local, territorial, and Tribal governments to strengthen support for vital public services and help retain jobs
Support immediate economic stabilization for households and businesses
Address systemic public health and economic challenges that have contributed to the inequal impact of the pandemic
The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each government to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hardest hit by the crisis. These funds can also be used to make necessary investments in water, sewer, and broadband infrastructure.
Concurrent with this program launch, Treasury has published an Interim Final Rule that implements the provisions of this program. Read more information on the process for finalizing the interim final rule.
HOW TO REQUEST FUNDING
Eligible state, territorial, metropolitan city, county, and Tribal governments may now request their allocation of Coronavirus State and Local Fiscal Recovery Funds through the Treasury Submission Portal.
REQUEST FISCAL RECOVERY FUNDS
FUNDING AMOUNTS
Congress has allocated Coronavirus State and Local Fiscal Recovery Funds to tens of thousands of eligible state, local, territorial, and Tribal governments. These allocations include:
Non-Entitlement Units
The Coronavirus Local Fiscal Recovery Fund will provide $19.53 billion to support non-entitlement units of local government (NEUs), which are local governments typically serving a population under 50,000. Treasury expects to make payments to states and territories, which will distribute amounts to eligible NEUs in their jurisdiction in accordance with the guidelines established by Treasury.
Additional Information on Non-entitlement Units
Tribal Governments
The Coronavirus State Fiscal Recovery Fund will provide $20 billion to support Tribal governments.
Additional Information for Tribal Governments
To protect the privacy of Tribal government information, each Tribal government will receive its allocation amount after submitting its request for funding in the Treasury Submission Portal.
TRANCHING OF FUNDS
Local governments will receive funds in two tranches, with 50% provided beginning in May 2021 and the balance delivered approximately 12 months later. States that have experienced a net increase in the unemployment rate of more than 2 percentage points from February 2020 to the latest available data as of the date of certification will receive their full allocation of funds in a single payment; other states will receive funds in two equal tranches. Governments of U.S. territories will receive a single payment. Tribal governments will receive two payments, with the first payment available in May and the second payment, based on employment data, to be delivered in June 2021.
More detailed information about funding amounts can be found in the allocation tables above.
Additional Information on Split Payments to State Governments
USE OF FUNDS
The Coronavirus State and Local Fiscal Recovery Funds provide eligible state, local, territorial, and Tribal governments with a substantial infusion of resources to meet pandemic response needs and rebuild a stronger, and more equitable economy as the country recovers. Recipients may use these funds to:
Support public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff
Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector
Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic
Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical
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