Allocation Methodology for Non-Entitlement Units (Aggregate State Totals)
Summary
A Treasury document dated May 10, 2021 describing its methodology for allocating Coronavirus Local Fiscal Recovery Fund (CLFRF) payments to non-entitlement units of local government (NEUs). The CLFRF provides $19.53 billion for NEUs, paid by Treasury to states for distribution to NEUs within each state. Under the American Rescue Plan Act, each state's share is proportional to the population of areas that are not metropolitan cities in that state. Treasury calculated each state's amount by subtracting the population of its metropolitan cities from its total population. Because 2020 population data was available for states but only 2019 data for metropolitan cities, Treasury used 2019 data for both to avoid mixing Census vintages.
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Full text
Coronavirus State and Local Fiscal Recovery Funds
Allocations to Non-Entitlement Units of Local Government
May 10, 2021
The American Rescue Plan Act (the Act) established the Coronavirus State Fiscal Recovery
Fund and Coronavirus Local Fiscal Recovery Fund (CLFRF), which provide a combined $350
billion in assistance to eligible state, local, territorial, and Tribal governments to help turn the
tide on the pandemic, address its economic fallout, and lay the foundation for a strong and
equitable recovery. This document describes Treasury’s methodology for allocating the funds to
non-entitlement units of local government.
Allocation methodology
The CLFRF provides $19.53 billion for non-entitlement units of local government (NEUs), to be
paid by Treasury to states for distribution to NEUs within each state.
The Act specifies that each state shall receive “an amount which bears the same proportion to
such reserved amount as the total population of all areas that are non-metropolitan cities in the
State bears to the total population of all areas that are non-metropolitan cities in all such States.”
To calculate the amount to be paid to a state for distribution to its NEUs, Treasury subtracted the
population of metropolitan cities in a state from the total population in the state.
The Act requires Treasury to use the latest population available data from the U.S. Census
Bureau. At the time of publication of the Interim Final Rule, population data for states is
available for 2020, but population data for metropolitan cities is only publicly available for 2019.
To avoid mixing Census vintages and ensure that the components of the formula sum to the total,
Treasury used 2019 data for state and metropolitan city population.
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