CORONAVIRUS LOCAL FISCAL RECOVERY FUNDS
TIMING – To the extent practicable, each metropolitan city and each county shall receive their first payment directly from the U.S. Treasury no later than 60 days after the date of enactment of American Rescue Plan (May 10, 2021). Smaller cities and towns (aka non-entitlement units of local government) should receive their funding through the State no later than 30 days after that date. All of these communities will be eligible to receive their second payment 12 months later.
USE OF FUNDS – All units of local government receiving funding shall only use the funds provided to cover costs incurred by December 31, 2024 to do the following activities. They may not deposit any of the funds into any pension fund.
"(A) 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;
(B) to respond to workers performing essential work during the COVID–19 public health emergency by providing premium pay to eligible workers of the metropolitan city, nonentitlement unit of local government, or county that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;
(C) for the provision of government services to the extent of the reduction in revenue of such metropolitan city, nonentitlement unit of local government, or county due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year of the metropolitan city, nonentitlement unit of local government, or county prior to the emergency; or
(D) to make necessary investments in water, sewer, or broadband infrastructure."
FUNDING FORMULA – This funding will be allocated based on population. Smaller cities and towns (aka nonentitlement units of local government) are also subject to a cap of 75% of the most recent budget as of January 27, 2020.
ADDITIONAL GUIDANCE – The U.S. Treasury is working on drafting additional guidance to better clarify what types of projects will be eligible under this program. If you would like to submit details about your proposed project to U.S. Treasury, you may email arp@manchin.senate.gov by April 9, 2021. All submissions will be shared with U.S. Treasury to aid in their development of additional guidance. As soon as U.S. Treasury guidance is published, U.S. Senator Joe Manchin’s Office will make it available to all interested parties.
Full bill text available via this link: https://sen.gov/JVW6 . The Coronavirus Local Fiscal Recovery Funds language can be found in Section 603.
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