April 23, 2020

The CARES Act provides Assistance for State and Local Governments

Through the Coronavirus Relief Fund, the CARES Act provides for payments to State, Local, and Tribal governments navigating the impact of the COVID-19 outbreak.

The CARES Act established the $150 billion Coronavirus Relief Fund.

Treasury will make payments from the Fund to States and eligible units of local government; the District of Columbia and U.S. Territories (the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands); and Tribal governments (collectively “governments”).

The CARES Act requires that the payments from the Coronavirus Relief Fund only be used to cover expenses that—

(1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19);

(2) were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and

(3) were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.

Guidance on eligible uses of Fund disbursements by governments is available below.

Amounts paid to States, the District of Columbia, U.S. Territories, and eligible units of local government are based on population as provided in the CARES Act.  The CARES Act directs Treasury to use U.S. Census Bureau data for the most recent year for which data is available.  The amount of payments made to each State will be reduced by the aggregate amount of payments that will be disbursed to eligible local governments within such State that have provided the required certifications to Treasury.  Additional information on these points can be accessed below.

A unit of local government eligible for receipt of direct payment includes a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level with a population that exceeds 500,000.  Eligible local governments must submit the certification required by the CARES Act to Treasury by the deadline set forth below in order to receive payment. 

Payments to Tribal Governments are to be determined by the Secretary of the Treasury in consultation with the Secretary of the Interior and Indian Tribes.  Although that consultation has not yet concluded, certain data is requested of Tribal governments at this time to assist in this determination.  Additional information on payments to Tribal governments will be posted as it becomes available.

Governments eligible for payments must provide payment information and required supporting documentation through the electronic form accessible below.  To ensure payments are made within the 30 day period specified by the CARES Act, governments must submit completed payment materials not later than 11:59 p.m. EDT on April 17, 2020.  Eligible local and Tribal governments that do not provide required information—and in the case of a local government, the required certification—by 11:59 p.m. EDT on April 17, 2020, may not receive any payment from the Fund.