NACo analyzes state and local coronavirus fiscal recovery funds
Funds would provide $350 billion to counties, states, cities, and others
National Association of Counties (NACo)
On February 9, the U.S. House Committee on Oversight and Reform released its Fiscal Year (FY) 2021 Reconciliation Act bill, which includes the Coronavirus State and Local Fiscal Recovery Funds. These funds would provide $350 billion to help states, counties, cities and tribal governments cover increased expenditures, replenish lost revenue and mitigate economic harm from the COVID-19 pandemic. The measure outlines that states, along with the District of Columbia, would receive about $195 billion, distributed mostly upon each state’s share of unemployed workers. Local governments would receive about $130 billion, split evenly between cities and counties, resulting in a direct county allocation based on population of $65.1 billion dollars. Tribal governments would receive $20 billion and U.S. territories would receive $4.5 billion.
The U.S. Department of Treasury would oversee and administer these payments to state and local governments, and every county would receive a direct allocation from Treasury. Once an eligible entity provides a certification on the use or needs of funds to the U.S. Treasury, the agency is required to make the payment within 60-days. These funds are available until they are expended by the recipient.
The table below contains projected allocations for counties from the U.S. Treasury, if the proposal is signed into law. The values are informed by the House Oversight Committee and the Congressional Research Service (CRS). The estimates are not official values from the U.S. Treasury and are subject to change.