A. Overview

The U.S. Department of the Treasury launched the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, to provide $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments. Treasury also released details on how these funds can be used to respond to acute pandemic response needs, fill revenue shortfalls among these governments, and support the communities and populations hardest-hit by the COVID-19 crisis. With the launch of the Coronavirus State and Local Fiscal Recovery Funds, eligible jurisdictions will be able to access this funding in the coming days to address these needs. State, local, territorial, and Tribal governments have been on the frontlines of responding to the immense public health and economic needs created by this crisis – from standing up vaccination sites to supporting small businesses – even as these governments confronted revenue shortfalls during the downturn. As a result, these governments have endured unprecedented strains, forcing many to make untenable choices between laying off educators, firefighters, and other frontline workers or failing to provide other services that communities rely on. Faced with these challenges, state and local governments have cut over 1 million jobs since the beginning of the crisis. The experience of prior economic downturns has shown that budget pressures like these often result in prolonged fiscal austerity that can slow an economic recovery. To support the immediate pandemic response, bring back jobs, and lay the groundwork for a strong and equitable recovery, the American Rescue Plan Act of 2021 established the Coronavirus State and Local Fiscal Recovery Funds, designed to deliver $350 billion to state, local, territorial, and Tribal governments to bolster their response to the COVID-19 emergency and its economic impacts.

Treasury is launching this much-needed relief to:

• Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control;

• Replace lost public sector revenue to strengthen support for vital public services and help retain jobs;

• Support immediate economic stabilization for households and businesses; and,

• Address systemic public health and economic challenges that have contributed to the inequal impact of the pandemic on certain populations. The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hardest-hit by the crisis. These funds also deliver resources that recipients can invest in building, maintaining, or upgrading their water, sewer, and broadband infrastructure.

B. Eligibility

Coronavirus State and Local Fiscal Recovery Funds will provide a critical source of relief for these smaller local governments, many of which have not received direct fiscal assistance from the federal government since the onset of the COVID-19 pandemic. Non-entitlement units, defined in section 603(g)(5) of the Social Security Act, as added by the American Rescue Plan Act, are generally local governments with populations of less than 50,000. Local governments that are not included in the Allocation for Metropolitan Cities table may be designated as non-entitlement units. Non-entitlement units will receive Coronavirus State and Local Fiscal Recovery Funds through their state governments. State governments will receive a specific allocation of these funds from Treasury for this purpose and will be responsible for disbursing these funds to non-entitlement units within their state. Award amounts are based on the population of the non-entitlement unit.

C. Application Period

Week of June 7, 2021- June 21, 2021

D. Performance period

March 3, 2021-December 31, 2024

Costs should be incurred by December 31, 2024 to only require that recipients have obligated the funds by such date. The period of performance will run until December 31, 2026, which will provide recipients a reasonable amount of time to complete projects funded with Fiscal Recovery Funds.

E. Award Period

States must disseminate funds within 30 days of receiving payment, contingent upon an approved extension request, if needed

F. Reporting

As prime recipients of a Federal award, NEUs are required to report to Treasury on the use of funds. OPB will update forthcoming reporting guidance provided by Treasury on its website. NEUs’ first report is due to Treasury by October 31, 2021.
In addition to other reporting requirements, NEUs will be asked to provide:

• NEU Recipient Number (a unique identification code for each NEU assigned by the State to the NEU as part of the request for funding)

• Copy of signed award terms and conditions agreement o Copy of signed assurances of compliance with Title VI of the Civil Rights Act of 1964

• Copy of actual budget documents validating the top-line budget total provided to the State as part of the request for funding.

• NEUs should abide by the reporting requirement guidelines set forth by the US Treasury to comply with these requirements.

Applications will be reviewed by program staff for registration information and completeness, ensuring that basic requirements, as described in the solicitation, are met. If all basic requirements are met, the grant manager will then review the application.