What are the grants of federal money or other resources to the states and or their cities counties or other local units called?

The SLFRF program provides governments across the country with the resources needed to:

  • Fight the pandemic and support families and businesses struggling with its public health and economic impacts
  • Maintain vital public services, even amid declines in revenue resulting from the crisis
  • Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity

Treasury has released the Final Rule for the program, which will take effect on April 1, 2022. Recipients and stakeholders are also encouraged to consult the Overview of the Final Rule, which provides a summary of Final Rule provisions for informational purposes, and to visit the Final Rule section below for more details.

Use of Funds

Recipients may use SLFRF funds to:

  • Replace lost public sector revenue, using this funding to provide government services up to the amount of revenue lost due to the pandemic
  • Respond to the far-reaching public health and negative economic impacts of the pandemic, by supporting the health of communities, and helping households, small businesses, impacted industries, nonprofits, and the public sector recover from economic impacts
  • Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical sectors
  • Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, to support vital wastewater and stormwater infrastructure, and to expand affordable access to broadband internet

The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction to meet local needs within these four separate eligible use categories.

Final Rule

Funding from the Coronavirus State and Local Fiscal Recovery Funds is subject to the requirements specified in the Final Rule released by Treasury on January 6, 2022. Treasury released an Overview of the Final Rule, which provides a summary of major rule provisions to assist recipients and stakeholders.

The Final Rule takes effect on April 1, 2022, though recipients can choose to take advantage of its flexibilities and simplifications now. Recipients may consult the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rulefor more information on compliance with the Interim Final Rule and the Final Rule.

The Final Rule builds on the program’s successes and implementation efforts so far. In May 2021, Treasury published the Interim Final Rule (IFR) to govern eligible and ineligible uses of funds (as well as other program provisions), sought feedback from the public on these program rules, and began to distribute funds. The IFR went immediately into effect in May, and since then, governments have used SLFRF funds to meet their immediate pandemic response needs and to begin building a strong and equitable recovery.

As governments began to deploy this funding in their communities, Treasury carefully considered the feedback provided through the public comment process on the Interim Final Rule and in other forums.  Treasury received over 1,500 comments, participated in hundreds of meetings, and received correspondence from a wide range of governments and other stakeholders.  On January 6, 2022 , Treasury released the Final Rule, which delivers broader flexibility and greater simplicity in the program, responsive to feedback in the comment process.

A few core improvements included in Final Rule are:

  • Broader set of uses that are available to respond to the pandemic’s public health and economic impacts on households, small businesses, and others, including capital expenditures
  • Major simplification for thousands of recipients through the $10 million revenue loss standard allowance
  • Greater flexibility in eligible broadband investments to address challenges with access, affordability, and reliability, as well as the addition of numerous eligible water and sewer infrastructure investments 
  • More streamlined options to provide premium pay through broadening the share of eligible workers who can receive premium pay without additional justification

RESOURCES ON DETERMINING ELIGIBLE USES OF FUNDS UNDER THE FINAL RULE

The Final Rule provides the rule text and supplemental information.

The Overview of the Final Rule provides a summary of major rule provisions for informational purposes and is intended as a brief, simplified user guide for recipients and stakeholders.

The Final Rule FAQs provide responses to frequently asked questions regarding the use of funds under the Final Rule.

The Department of Treasury and the Department of Housing and Urban Development partnered to create the Affordable Housing How-To Guide The purpose of the guide is to assist recipients in implementing their funds for affordable housing. It provides a summary of relevant SLFRF guidance and provides information on ways recipients can combine different sources of federal funds.

The Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule  provides guidance on the transition from compliance with the Interim Final Rule to compliance with the Final Rule.

Tool for Determining Low and Moderate Income (LMI) Households  provides a spreadsheet to assist recipients in determining income thresholds for the Final Rule’s definition of LMI in their jurisdiction and assist with administering the public health and economic response provisions of the Final Rule.

The Final Rule webinar and slide presentation provide an introduction and summary of the Final Rule.

HOW TO REQUEST FUNDING

Eligible state, territorial, metropolitan city, county, and Tribal governments may request their allocation of Coronavirus State and Local Fiscal Recovery Funds through the Treasury Submission Portal.

Request Fiscal Recovery Funds

RECIPIENT COMPLIANCE AND REPORTING

Recipients are required to comply with Treasury’s Compliance and Reporting Guidance and meet compliance and reporting responsibilities defined in the Final Rule, which includes submitting mandatory periodic reports to Treasury. 

Recipients’ reporting requirements vary by the type and amount of funds received.

Additional Information on Compliance and Reporting

2022 SLFRF Compliance Supplement

funding Amounts

Congress has allocated Coronavirus State and Local Fiscal Recovery Funds to tens of thousands of eligible state, local, territorial, and Tribal governments.  These allocations include:

Type Amount
States & District of Columbia $195.3
Counties $65.1
Metropolitan Cities $45.6
Tribal Governments $20.0
Territories $4.5
Non-entitlement Units of Local Government $19.5

ALLOCATION INFORMATION

Treasury has published detailed allocation information for the Coronavirus State and Local Fiscal Recovery Funds:

Additional information regarding allocations for non-entitlement units and Tribal governments may be found below.

Non-Entitlement Units

The Coronavirus Local Fiscal Recovery Fund provides $19.53 billion to support non-entitlement units of local government (NEUs), which are local governments typically serving a population under 50,000. Treasury has made payments to states and territories, which are in the process of distributing amounts to eligible NEUs in their jurisdiction in accordance with the guidelines established by Treasury.

Additional Information on Non-entitlement Units

Tribal Governments

The Coronavirus State Fiscal Recovery Fund provides $20 billion to support Tribal governments.

Additional Information for Tribal Governments 

To protect the privacy of Tribal government information, each Tribal government will receive its allocation amount after submitting its request for funding in the Treasury Submission Portal.

TRANCHING OF FUNDS

Local governments will receive funds in two tranches, with 50% provided beginning in May 2021 and the balance delivered approximately 12 months later. States that have experienced a net increase in the unemployment rate of more than 2 percentage points from February 2020 to the latest available data as of the date of certification will receive their full allocation of funds in a single payment; other states will receive funds in two equal tranches. Governments of U.S. territories will receive a single payment. Tribal governments will receive two payments, with the first payment available in May and the second payment, based on employment data, to be delivered in June 2021.

More detailed information about funding amounts can be found in the allocation tables above.

Additional Information on Split Payments to State Governments

FOR MORE INFORMATION

For general questions about this program, please email .

RECEIVE COVID-19 RELIEF UPDATES

PROGRAM UPDATES

Letter from Deputy Secretary of the Treasury to SLFRF Recipients

FACT SHEET: SLFRF Housing Investments Factsheet

FACT SHEET: The Impact of the American Rescue Plan after One Year

American Rescue Plan State and Local Fiscal Recovery Funds: Project Highlights

ARP Anniversary Remarks to the National League of Cities (March 15, 2022)

Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule (January 6, 2022)

October Blog Post – Early Data Shows State and Local Government Are Committing Recovery Funds to Build an Equitable Recovery (October 14, 2021)

Early Reporting Highlights – Coronavirus State and Local Fiscal Recovery Funds (October 14, 2021)

Pre-Award Requirements (April 15, 2021)

Statement on State Fiscal Recovery Funds and Tax Conformity (April 7, 2021)