The U.S. Department of Treasury has released guidance on the Coronavirus State and Local Fiscal Recovery Fund (Recovery Fund) portion of the American Rescue Plan. The fund has set aside $350 billion to help support eligible state and local governments in their response to the COVID-19 pandemic.
Use of Funds
In general, recipients may use these funds to:
- Support public health expenditures by 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 harm to households, small businesses, workers, impacted industries and the public sector.
- Replace lost public sector revenue by using the funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic.
- Provide premium pay for essential workers by offering additional support to those who bear the greatest health risks because of their service in critical infrastructure sectors.
- Invest in water, sewer, and broadband infrastructure by making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and expand access to broadband internet.
Within these categories, recipients have broad flexibility to decide how to use the funding to best meet the needs of their communities.
How to Request Funding
Eligible state and local governments can request funding through the Treasury Submission Portal. For more information on submission requirements, or to access the Portal, click here.
The Coronavirus State and Local Fiscal Recovery Funds are subject to the requirements specified in the Interim Final Rule, adopted on May 10, 2021. Please note that these rules are subject to change.
For more information on the Recovery Fund, please visit the U.S. Department of the Treasury’s website by clicking here.