Congressional Research Service IN11664.1 (The American Rescue Plan Act, Section 9901—The Coronavirus Local Fiscal Recovery Fund)
Summary
CRS Insight IN11664.1, The American Rescue Plan Act, Section 9901—The Coronavirus Local Fiscal Recovery Fund, dated May 11, 2021. It explains that Section 9901 of the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2) provides $362 billion in general federal payments to state, local, tribal and territorial governments, of which $130 billion goes to the Coronavirus Local Fiscal Recovery Fund (CLFRF), comparable to the $150 billion Coronavirus Relief Fund in the CARES Act (P.L. 116-136). The Insight describes how the $130.2 billion CLFRF total is distributed across types of local government, including $45.57 billion to metropolitan cities under the FY2021 CDBG formula, and gives allocations by state and territory in Table 1.
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INSIGHTi
The American Rescue Plan Act, Section 9901—
The Coronavirus Local Fiscal Recovery Fund
May 11, 2021
Section 9901 of the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2) provides a total of $362
billion in general federal payments to state, local, tribal, and territorial governments, $130 billion of
which is directed to the Coronavirus Local Fiscal Recovery Fund (CLFRF). Similar assistance was
provided through the $150 billion Coronavirus Relief Fund established in the CARES Act (P.L. 116-136).
This Insight summarizes the assistance provided to the CLFRF, as established in Section 9901 of ARPA.
Allocations sorted by state and territory are provided in Table 1. Additional guidance on allocations,
timing, and eligible uses is available at the Treasury State and Local Assistance website. (ARPA also
created the Coronavirus State Fiscal Recovery Fund (CSFRF), discussed in a companion Insight.)
Allocation Methodology
ARPA provided a total of $130.2 billion through the CLFRF, distributed differently across types of local
government:
Metropolitan Cities: $45.57 billion to governments of localities classified as
“metropolitan cities” in the Community Development Block Grant (CDBG) program,
with individual amounts provided pursuant to the FY2021 CDBG formula;
Nonentitlements: $19.53 billion to other units of general local government (as defined in
42 U.S.C. 5302(a)(5)) that represent areas classified as “nonentitlement communities” in
the CDBG program and are county governments, with
(1) Federal payments first made to states made proportionally to the state populations not residing
in metropolitan cities; and
(2) Individual amounts distributed by the state proportional to each local government’s state
population share;
Counties: $65.1 billion to county governments, with
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(1) Payments to counties classified as “urban counties” under the CDBG program equal to the
greater of their projected allocation based on their population and the allocation they would have
received if urban counties had been included in the $45.57 billion provided to “metropolitan
cities”; and
(2) Payments to all other counties made proportional to their state’s population share.
Timing
Treasury released guidance specifying that all local governments will receive payments in two
installments, with the first payment provided in May 2021 and the second payment made no later than 12
months after the first payment. (Metropolitan city and county governments must complete certification,
consisting of payment delivery instructions and an authorized representative signature, through the
Treasury submission portal to receive CLFRF payments. Nonentitlements do not need to certify to receive
assistance.) Metropolitan city and county governments are to receive payments directly from Treasury,
while nonentitlements are to have payments provided by the state government. All payments are to remain
available until December 31, 2024, with funded projects completed no later than December 31, 2026.
Amounts not spent or used for ineligible purposes must be repaid to Treasury.
Eligible Uses
ARPA specifies that funding provided through the CLFRF may generally only to be used to
respond to the COVID-19 public health emergency and its negative economic impacts;
provide premium pay to essential workers or grants to employers with essential workers;
replace lost, delayed, or decreased revenue, relative to projections issued before January
27, 2020; or
make necessary investments in water, sewer, or broadband infrastructure.
CLFRF recipients may transfer funds to private nonprofit groups, special purpose units of state or local
governments, public benefit corporations involved in the transportation of passengers or cargo, or their
state government. Table 1 shows the total CLFRF payments provided to state, tribal, and territorial
governments.
Table 1. CLFRF Payments by State and Territory
(in billions of dollars)
State Amount
Alabama 1.739
Alaska 0.238
American Samoa 0.016
Arizona 2.644
Arkansas 1.011
California 15.898
Colorado 1.935
Connecticut 1.557
Delaware 0.344
District of Columbia 0.510
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State Amount
Florida 7.106
Georgia 3.510
Guam 0.050
Hawaii 0.518
Idaho 0.579
Illinois 5.930
Indiana 2.588
Iowa 1.174
Kansas 0.994
Kentucky 1.587
Louisiana 1.808
Maine 0.502
Maryland 2.322
Massachusetts 3.388
Michigan 4.407
Minnesota 2.132
Mississippi 0.947
Missouri 2.473
Montana 0.344
Nebraska 0.663
Nevada 1.041
New Hampshire 0.462
New Jersey 3.595
New Mexico 0.705
New York 10.715
North Carolina 3.411
North Dakota 0.242
Northern Mariana Islands 0.016
Ohio 5.289
Oklahoma 1.323
Oregon 1.505
Pennsylvania 6.159
Puerto Rico 1.546
Rhode Island 0.537
South Carolina 1.626
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South Dakota 0.276
Tennessee 2.281
Texas 10.440
U.S. Virgin Islands 0.032
Utah 1.099
Vermont 0.201
Virginia 2.910
Washington 2.692
West Virginia 0.679
Wisconsin 2.323
Wyoming 0.182
Total $130.200
Source: U.S. Treasury.
Note: Items may not sum to total due to rounding.
Author Information
Grant A. Driessen
Specialist in Public Finance
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