On Monday, the U.S. Department of the Treasury released guidance on the State and Local Coronavirus Fiscal Recovery Fund as part of the American Rescue Plan. The bill includes $350 billion in aid to state and local governments as well as $65.1 billion in direct aid to every county in America. Additionally, the U.S. Treasury opened the new portal that counties must complete to receive Fiscal Recovery Funds. State and local governments can begin applying for the aid this coming Monday, May 17th. Coinciding with the release of these funds, several Republican-led states have been in a legal battle with the Biden Administration over whether states can cut taxes after taking relief money and using it to solidify their budgets. The U.S. Treasury insisted on Monday that the relief money not be used to subsidize tax cuts, directly or indirectly. Under the State and Local Coronavirus Fiscal Recovery Fund program, California will receive nearly $43 billion in funding, including $27 billion for the state government, $7.7 billion for California counties, and $8.2 billion for California cities.
The U.S. Treasury will be noticing the Interim Rule which governs how the funds can be used for a 60-day comment period in the coming days. RCRC encourages member counties to provide feedback to RCRC Acting Vice President Governmental Affairs, Staci Heaton, at sheaton@rcrcnet.org.