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Treasury, Allocation Methodology for States, Territories & Freely Associated States

Summary

A U.S. Department of the Treasury document from August 2021 setting out the allocation methodology of the Coronavirus Capital Projects Fund for States, Territories, and Freely Associated States. It states that the American Rescue Plan Act of 2021 established the Fund with $10 billion, of which the 50 states, the District of Columbia and Puerto Rico are eligible for total payments of $9.8 billion. Each of the 52 States receives a fixed $100 million, and the remaining $4.6 billion is split 50 percent by population, 25 percent by rural population and 25 percent by individuals below 150 percent of the poverty line. Treasury used the 2020 decennial "Census" apportionment data and 2019 American Community Survey estimates. Each of the seven territories and freely associated states is allocated $14,285,714.

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“Treasury, Allocation Methodology for States, Territories & Freely Associated States.” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/treasury-allocation-methodology-for-states-territories-freely-associat-5ce707a7dc/, SHA-256 4c88928d9f64b5e773b0ecd881f020f038ab997348c08aa7ec61ed85b08d7a8a.

Full text

                          CORONAVIRUS CAPITAL PROJECTS FUND

                             U.S. DEPARTMENT OF THE TREASURY

        Allocations Methodology for States, Territories, and Freely Associated States

                                                 August 2021

The American Rescue Plan Act of 2021 established the Coronavirus Capital Projects Fund (the
Fund), which provides $10 billion in payments to States, territories, and Tribal governments to
carry out critical capital projects directly enabling work, education, and health monitoring,
including remote options, in response to the public health emergency with respect to the
Coronavirus Disease (COVID-19).1

Under the statute, the 50 states, the District of Columbia, and Puerto Rico (the States) are eligible
to receive total payments of $9.8 billion, and the seven territories and freely associated states, as
one group, and Tribal governments and the State of Hawaii (for Native Hawaiian programs), as
another group, are each eligible to receive payments totaling $100 million.

This document describes Treasury’s methodology for allocating the funds to States, as well as
territories and freely associated states.

Allocation methodology

State allocations

Each of the 52 States (including the District of Columbia and Puerto Rico) is entitled to a fixed
amount of $100 million per state, totaling $5.2 billion. States are also entitled to a portion of the
remaining $4.6 billion, allocated as follows:
    •   50 percent ($2.3 billion) allocated among the States based on the proportion that the
        population of each State bears to the population of all States;
    •   25 percent ($1.15 billion) allocated among the States based on the proportion that the
        number of individuals living in rural areas in each State bears to the number of
        individuals living in rural areas in all States; and
    •   25 percent ($1.15 billion) allocated among the States based on the proportion that the
        number of individuals with a household income below 150 percent of the poverty line
        applicable to a family of the size involved in each State bears to the number of such
        individuals in all States.
To implement this provision, Treasury used the resident population counts from the 2020
decennial Census apportionment data to determine each State’s population, and the 2019
one-year estimates from the American Community Survey for the number of people living in

1
 Section 604 of the Social Security Act, as added by section 9901 of the American Rescue Plan Act of 2021, Pub.
L. No. 117-2 (Mar. 11, 2021).
rural areas and the number of individuals with household incomes below 150 percent of the
poverty line.

Territory and Freely Associated State allocations

The Fund provides $100 million to be paid in equal shares to the seven territories and freely
associated states specified in the statute. These entities are the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of
the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. Each of the
named territories and freely associated states will be allocated $14,285,714.

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home.treasury.gov
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