By now, you’ve hopefully accessed the latest estimates on how much your agency might receive in direct allocations from the historic $1.9 Trillion American Rescue Plan Act (ARP) President Biden enacted on March 11, 2021.  

Included in this act was Section 9901 (Coronavirus State and Local Fiscal Recovery Funds) that appropriated $362 Billion in direct allocations to States, Counties, Cities, and Tribal Governments/Public Lands.  Please be sure to review the analysis provided by our association partners including the GFOA and League of California Cities.

Here are the key points on the Coronavirus State and Local Fiscal Recovery Funds:

• The US Treasury has not yet finalized the individual amounts nor developed the compliance, reporting and other guidance
• City and County agencies will receive their funds automatically and unlike the CARES act do NOT need to apply nor submit any certification to receive their funds
• You can find your latest agency estimates from the National League of Cities or the National Association of Counties
• Amounts are estimates and may still change slightly as the US Treasury confirms the allocation formulas
• Payments to all counties and cities with at least 50,000 population will be split into equal parts with 50% due within 60 days of the March 11, 2021 enactment and the remaining 50% will be NO EARLIER than one year later
• Cities under 50,000 population will receive their allocations from a State pass-through and their allocation is limited to 75% of their total budget
• Funds must be used by December 31, 2024
• Uses are limited to these generic categories (see analysis below or bill text for more details)
  • Respond to or mitigate the public health emergency with respect to the
  • COVID-19 emergency or its negative economic impacts
  • Provide government services to the extent of the reduction in revenue
  • Make necessary investments in water, sewer, or broadband infrastructure
  • Transfer funds to a private nonprofit organization, a public benefit corporation involved in the transportation of passengers or cargo or a special-purpose unit of State or local government
  • Respond to workers performing essential work
• Funds are not allowed to be deposited into pension funds
• Failure to comply or meet the subsequent US Treasury guidance will trigger repayment to the Treasury

Resources for Coronavirus State and Local Fiscal Recovery Funds information:

• GFOA’s latest analysis and their 3/25/21 email to members

• League of California Cities analysis and resource page (including video and slides from Webinars)
• National League of Cities
• National Association of Counties