State and Local Funds

How will the $150 billion Coronavirus Relief Fund for states and local government be allocated? 

  • Coronavirus Relief Fund (Sec. 5001) – A program created under the Department of the Treasury to provide funding to States, Tribes, and localities to offset lost revenue as a result of the coronavirus public health emergency.  The bill provides an appropriation of $150 billion to be distributed by formula based on population. Eligible local governments may apply directly to the Treasury for funding and amounts paid to a state will be reduced accordingly.

Who is eligible to apply and receive funding?   

  • States, eligible local government, Tribal governments, DC, and the territories.   

How is funding distributed? 

  • Funding is paid based on a state share of the total population, subtracting any amounts paid to local governments.   

  • No state can receive less than $1.25 billion.   

  • $8 billion is reserved for Tribal governments after consultation.   

What is the timing for distributing funds to states?  

  • Funds must be paid within 30 days of enactment.  

How is funding allocated to states?   

  • States receive an amount equal to their relative population, deducting any amount that may have been paid to units of local government within the state who applied for funding independent of the state.   

What criteria is used to determine if local governments can apply?   

  • A local government means any county, municipality, town, or other unit of general government with a population greater than 500,000.    

  • Smaller units of local government will need to work with their states to access funding. 

What can funds be used for?  

  • Funds may only be used to cover the costs associated with necessary expenses incurred as a result of the coronavirus diseases 2019 public health emergency, not accounted for in the most recently approved state budget, for calendar year 2020.  The fungibility of certain aspects of public budgeting and the general sorts of revenue shortfalls that are expected in the current economic climate makes it unclear how restrictive those limitations will be in practice. 

  • Covered by protections and restrictions that apply to annual LHHS appropriations, including Hyde. 

What funding is provided to the Federal Emergency Management Agency (FEMA) to support state and local response efforts? 

  • The CARES Act infuses $45 billion into FEMA’s Disaster Relief Fund (DRF), which will be added to the existing amounts in the DRF (approximately $40 billion). This funding will help response efforts in states with approved major disaster declarations. The bill also includes $100 million for FEMA’s Emergency Management Performance Grants (EMPG), which support state and local emergency management capacity; $100 million for Assistance to Firefighter Grants to support the acquisition of personal protective equipment; and $200 million for FEMA’s emergency food and shelter program.