INCENTIVES ALERT: Treasury set to deliver $150 billion in Coronavirus Relief Fund payments

Funding for states and local governments via the CARES Act to navigate the COVID-19 impact

Approved through the CARES Act legislation, U.S. Treasury is set to provide payments to State, Local, and Tribal governments suffering from the impact of the COVID-19 pandemic. Known as the Coronavirus Relief Fund, Treasury will be allocating up to $150 billion based on need and allocation formulas.

The CARES Act sets out strict guidelines on how the Coronavirus Relief Funds may be spent, which includes:

  • Necessary expenditures due to the public health emergency caused by COVID-19
  • Expenditures not accounted for in a State or government budget approved as of the enactment of the CARES Act (March 27, 2020)
  • Eligible expenditures which occur in the period of March 1, 2020 through December 30, 2020

Payment levels to the States, District of Columbia, U.S. Territories, and local government, where eligible, will be determined by population formulas. Population will be based on the most recent year of U.S. Census data, as directed by the CARES Act.

Below is a visualization of the potential funding levels for each State under the Coronavirus Relief Fund.

Eligible units of local government includes counties, municipalities, towns, and villages, among others with a population that exceeds 500,000. Any payments directed to local governments will be deducted from the respective State’s allotment. Allocations to Tribal Governments will be based on direct consultations of the Secretary of the Treasury, Secretary of the Interior, and Indian Tribes.

Governments must have submitted required payment certification and supporting documentation by April 17, 2020 to ensure payments are made within the 30-day time frame set out in the CARES Act. For more guidance from U.S. Treasury, visit their official CARES Act website.