Grant Details

ARP: Coronavirus State and Local Fiscal Recovery Funds

 
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    Funder Type

    Federal Government

    IT Classification

    B - Readily funds technology as part of an award

    Authority

    Department of the Treasury

    Summary

    The American Rescue Plan's (ARP) Coronavirus State Fiscal Recovery Fund, Coronavirus Local Fiscal Recovery Fund, and Coronavirus Capital Projects Fund will provide funds to units of government for uses related to COVID-19 response and mitigation, and to offset government revenue losses related to the public health emergency. Impacted governments may claim revenue losses as early as January 27, 2020.


    State and local recovery funds may be used for the following purposes:

    • to respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19) or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
    • to respond to workers performing essential work during the COVID–19 public health emergency by providing premium pay to eligible workers of the State, territory, or Tribal government that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;
    • for the provision of government services to the extent of the reduction in revenue of such State, territory, or Tribal government due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year of the State, territory, or Tribal government prior to the emergency; or
    • to make necessary investments in water, sewer, or broadband infrastructure.

    There is an additional $10 billion set aside for the Coronavirus Capital Projects Fund, which allocates these funds to states, territories, and tribal governments for critical capital projects directly enabling work, education, and health monitoring, including remote options, in response to pandemic.

     

    History of Funding

    None is available.

    Additional Information

    These funds are allocated as part of the American Rescue Plan Act of 2021 signed by President Biden on March 11, 2021. ARP appropriates $1.9 trillion in funds to address economic and health issues resulting from the COVID-19 pandemic.

    Contacts

    State and Local Fiscal Recovery Fund Staff

    State and Local Fiscal Recovery Fund Staff
    1500 Pennsylvania Avenue Northwest
    Washington, DC 20220
     

  • Eligibility Details

    States, counties, municipalities, the District of Columbia, tribal governments, and five US territories are eligible.


    Government recipients are also permitted to transfer funds to private nonprofit organizations, public benefit corporations involved in transportation, special-purpose units of local government, or multi-state transit agencies.

    Deadline Details

    Counties and municipalities will receive half their funding within 60 days of ARP's enactment on March 11, 2021, and the second half no earlier than a year after the first distribution. Local governments with population under 50,000 will receive their funds within 90 days.


    States may receive funding all at once at the discretion of the Treasury. The Treasury must issue state payments within 60 days of ARP's enactment.


    State and Local Fiscal Recovery Funds must be spent by December 31, 2024.

    Award Details

    In total the American Rescue Plan (ARP) allocates $350 billion across state and local governments.


    The Coronavirus State Fiscal Recovery Fund allocates funds as follows:

    • $20 billion to tribal governments
    • $4.5 billion to US territories, divided equally among the five named territories
    • $195.3 billion to the 50 states and DC, distributed as follows:
      • $25.5 billion divided equally among the states and DC, no less than $500 million per state
      • $1.25 billion in additional aid specified for DC
      • $169.045 billion to the states based on unemployment data from Q4 2020

    The Coronavirus Local Fiscal Recovery Fund allocates funds as follows:

    • $65.1 billion to counties by population, to be distributed within 30 days of population data certification
    • $45.57 billion to metropolitan cities using Community Development Block Grant formulas; to be distributed within 60 days
    • $19.53 billion to non-entitlement units of local government (municipalities under 50,000 in population). These funds will be sent to the States within 60 days, and states have 30 days to distribute the funds to municipalities. Amounts are determined proportionally by population, but cannot exceed 75% of that unit of government's most recent budget.
    • An additional $2 billion for public land (revenue share) counties and tribal governments to be split between FY 2022 and FY 2023. $750 million per year will be allocated to eligible revenue sharing counties, and $250 million per year will be allocated to eligible tribal governments. These funds may be used for any governmental purpose except lobbying.

    The Coronavirus Capital Projects Funds allocates funds as follows:

    • Each state, DC, and Puerto Rico will receive a minimum allocation of $100 million.
    • $100 million will be divided amongst other U.S. territories.
    • $100 million will be designated for Tribal governments and Native Hawaiian use.
    • Of remaining funds, states will receive an additional allocation based on their population (50%), number of individuals living in rural areas of the state as a percentage of the U.S. rural population (25%), and proportion of the state's population of households living below the poverty line.

    Related Webcasts Use the links below to view the recorded playback of these webcasts


    • Funding to Enhance Response, Investigation, and Prosecution of Domestic Violence - Sponsored by Panasonic - Playback Available
    • Justice Assistance Grants: Re-thinking the Program You Know So Well - Sponsored by Panasonic - Playback Available
    • Making the Most of the 2014 Assistance to Firefighters Grants – Sponsored by Panasonic - Playback Available

 

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