On Tuesday evening, the House Oversight and Reform Committee, which has jurisdiction over state and local funding, released its portion of the $1.9 trillion coronavirus (COVID-19) reconciliation package.  Notably for RCRC, the House Oversight and Reform Committees’ draft legislative text includes nearly all of its $350.7 billion funding allocation going toward state, local, and tribal aid.  Nationally, counties are expected to be allocated $65.1 billion, which will be allocated directly to county treasuries based on population.  The U.S. Treasury will be in charge of distributing these funds within 60 days of receiving a certification of need from counties and other local governments.  These dollars will not have an expiration date and can be used to cover the following expenses: 

  1. Respond to or mitigate the public health emergency with respect to the COVID-19 emergency or its negative economic impacts. 
  2. Cover costs incurred as a result of the COVID-19 emergency. 
  3. Replace revenue that was lost, delayed or decreased as determined based on projections of the government as of January 27, 2020, as a result of the COVID-19 emergency. 
  4. Address negative economic impacts of the COVID-19 disease.

 
Despite the positive news for counties across the country, the releasing of this legislative text by the House Oversight and Reform Committee does not mean counties will be able to see their allocations just yet.  Firstly, the House Oversight and Reform Committee will need to markup the bill, which is expected to take place on February 12th.  The bill will then go to the House Budget Committee which will reconcile all pieces of the various texts from the other House committees.  From there, the bill is expected to go to the House Floor for a vote by late next week, and passage is expected.  In the U.S. Senate, action on the bill will be deferred until the impeachment trial of former President Donald Trump has concluded.  This is likely to mean that a bill is expected to reach President Biden’s desk for signature in mid-March. 
 
Click here to view the estimated amounts RCRC-member counties are likely to receive.
Click here to read the House Oversight and Reform Committee bill text.
Click here to read the one pager.
 
Additional details on the $350.7 billion allocation:

  • Any county that chooses to request funds from the U.S. Treasury will be ineligible to request funding from the Federal Emergency Management Agency or any other U.S. government source for the same expenditures.
  • States will receive $195 billion directly; it is anticipated the State of California will utilize some of these monies to further support county programs such as vaccine roll-out.
  • There are no direct “claw-back” mechanisms; however if the demonstrated need submitted to the U.S. Treasury by counties is deemed to not fit the aforementioned criteria, or the money is not spent appropriately once received, the U.S. Treasury does have the authority to require its return.
  • Currently, the legislation only calls for a “general statement” of certification on how the money will be spent; however the U.S. Treasury could come up with additional guidelines after the bill is signed into law and rulemaking proceedings occur.
  • Cities above 50,000 in population will receive a direct allocation; cities under 50,000 in population will have their monies allocated through the State of California.
     

RCRC has continually advocated for direct funding to counties to be included in any next round of federal coronavirus relief, regardless of county size and with minimal restrictions on the use of those monies. As this relief package moves through the process, this remains RCRC’s top federal priority.