Article

CARES Act: sorting through the details for state and local governments

April 29, 2020 · Authored by Amanda R. Blomberg

The Coronavirus Aid, Relief and Economic Security (CARES) Act enacted on March 27, 2020, provides significant funding to states, local governments and tribes as they navigate through the myriad of operational and financial challenges presented by the coronavirus pandemic.

The Coronavirus Relief Fund received an appropriation of $150 billion for states, local governments, tribes, the District of Columbia and U.S. territories. These funds have been allocated based on predetermined amounts and formulas that result in a minimum of $1.25 billion paid to each state, with higher population states receiving larger amounts. In addition, local governments that support populations over 500,000 will receive a share of this funding, which is also based on population.

Payments received through the relief fund are required to be used as follows:

• For necessary expenditures incurred due to the COVID-19 public health emergency
• For costs that were not accounted for in the recipients’ budgets as of March 27, 2020
• For costs incurred between March 1, 2020 and December 30, 2020

The U.S. Department of Treasury has released guidance in relation to the relief fund, available here:

• Coronavirus Relief Fund – Guidance for State, Territorial, Local, and Tribal Governments
• Coronavirus Relief Fund – Frequently Asked Questions

In addition to the Coronavirus Relief Fund, the CARES Act included $340 billion in emergency appropriations to federal agencies to prevent, prepare for and respond to the coronavirus crisis. Federal agencies can use these appropriations for operations such as salaries and program management as well as granting funds to states, local governments, tribes and other nonfederal entities.

Examples of funding reaching the local government level include:

• $25 billion in transit assistance from the U.S. Department of Transportation
• $100 billion in health provider relief from the U.S. Department of Health and Human Services