Allocation Methodology for States
Summary
A Treasury document dated May 10, 2021 describing its methodology for allocating Coronavirus State Fiscal Recovery Fund (CSFRF) payments to state governments under the American Rescue Plan Act. The CSFRF provides $195.3 billion to the 50 states and the District of Columbia, of which $25.5 billion is allocated equally and $754.9 million goes to the District of Columbia to reflect what it would have received from the Coronavirus Relief Fund (CRF) had it been treated as a state. The remaining amount of approximately $169 billion is allocated by each state's share of seasonally-adjusted unemployed individuals over the 3-month period ending with December 2020, using Bureau of Labor Statistics data. Treasury made a small adjustment so that no state receives less than it did from the CRF.
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Coronavirus State and Local Fiscal Recovery Funds
Allocations to State Governments
May 10, 2021
The American Rescue Plan Act (the Act) established the Coronavirus State Fiscal Recovery
Fund (CSFRF) and Coronavirus Local Fiscal Recovery Fund, 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
state governments.
Allocation methodology
The CSFRF provides $195.3 billion to the 50 states and the District of Columbia. Of this
amount, the Act requires $25.5 billion to be allocated equally to the 50 states and the District of
Columbia. The Act also requires $754.9 million to be paid to the District of Columbia, which is
equal to difference between the amount that the District of Columbia would have received from
the Coronavirus Relief Fund (CRF) had the District of Columbia been treated as a state rather
than as a territory under the CRF allocations provided by the CARES Act.
After the equal allocation to the 50 states and the District of Columbia and the “additional
amount” for the District of Columbia, approximately $169 billion remains. The Act requires that
this remaining amount be allocated to each state and the District of Columbia:
…in an amount which bears the same proportion to such remainder as the
average estimated number of seasonally-adjusted unemployed individuals (as
measured by the Bureau of Labor Statistics Local Area Unemployment Statistics
program) in the State or District of Columbia over the 3-month period ending
with December 2020 bears to the average estimated number of seasonally-
adjusted unemployed individuals in all of the 50 States and the District of
Columbia over the same period.
To implement this provision, Treasury used the latest available data from the Bureau of Labor
Statistics 1 at the time of issuance of the Interim Final Rule.
Treasury made a small adjustment to the allocations pursuant to the requirement in the Act that
no state or the District of Columbia receive less than it did from the CRF, inclusive of the
amounts allocated under the Act to counties, metropolitan cities, and non-entitlement units
within a state or the District of Columbia.
1
For an overview of the Bureau of Labor Statistics’ Local Area Unemployment Statistics (LAUS) program, see:
https://www.bls.gov/lau/. In performing the calculations, Treasury used data from the LAUS database on the Bureau
of Labor Statistics’ website, accessed at: https://download.bls.gov/pub/time.series/la/.
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