States Receiving a Second Tranche Payment
As of May 10, 2022, all states receiving a second tranche payment have been notified of their eligibility to enter the Treasury Submission Portal, and Treasury has begun making payments to states.
Section 602 of the Social Security Act, as added by the American Rescue Plan Act (ARPA), provides for payments to states and territories in two tranches in certain circumstances, with the second tranche withheld up to 12 months from the date the state or territory provided a certification for the first tranche. The final rule implements this by providing that Treasury would withhold second tranche payments to states until at least May 10, 2022, and not more than 12 months from the date the state provided its certification for first tranche funds.
States Only Receiving a Second Tranche NEU Payment
Per section 603 of the Social Security Act, as added by the ARPA, payments to states for distribution to non-entitlement units of local government (NEUs) will be made in two tranches, with the second tranche being paid no earlier than twelve months after the first payment. Consistent with this requirement, Treasury has begun providing NEU second tranche payments to states approximately twelve months after their first tranche NEU payment. Generally, payments are scheduled within a week of the recipient eligibility date.
For example, if a state was paid the first tranche NEU allocation on June 30, 2021, then the state became eligible for its second tranche NEU allocation on or shortly after that date in 2022, which would be the 12 month mark. Generally, payments are scheduled within a week of the recipient eligibility date.
Treasury opens the Treasury Submission Portal to states receiving a second tranche NEU allocation in a phased approach, allowing recipients to access the Portal 30 days prior to their second tranche NEU payment date.
Metro Cities and Counties
Per section 603 of the Social Security Act, as added by the ARPA, metro cities and counties will receive their second tranche payment no earlier than twelve months after the first payment. Consistent with this requirement, Treasury has begun providing second tranche payments to metro cities and counties approximately twelve months after their first tranche payment.
For example, if a metro city or county was paid the first tranche on June 30, 2021, then the city or county became eligible for its second payment on or shortly after that date in 2022, which would be the 12 month mark. Generally, payments are scheduled within a week of the recipient eligibility date.
Below are the steps a metro city or county may expect as part of the second tranche payment process:
- Metro cities and counties will receive an email from Treasury a few weeks before they become eligible for their second tranche payment with detailed instructions on entering the Treasury Submission Portal.
- Once the recipient has successfully completed their submission in the Treasury Submission Portal, the submission will undergo payee verification review, which generally takes approximately four business days.
- During that review, the recipient’s designated point of contact (POC) will receive an email if there is an issue regarding the submission that needs correction or clarification.
- If the information and documentation submitted are determined to be complete and accurate, the designated POC will receive confirmation including the projected timing for payment.
- The recipient can expect that their second tranche payment would be scheduled and that the funds will be deposited within 1-2 business days of the date the payment is scheduled.
- To ensure the submission is complete prior to leaving the Treasury Submission Portal, recipient submitters should verify that the status says “Submitted” under the second tab titled "Second Tranche Form." The designated POC will receive an email confirmation once the submission is complete and has been successfully received.
Non-entitlement Units of Local Government (NEUs)
NEUs should expect to receive the second tranche payment from their state, no earlier than twelve months after their first tranche payment. We recommend that NEUs contact their respective state government for more information.
Contact Us
If you have questions about Treasury’s Submission Portal or for technical support, please contact us via email at covidreliefitsupport@treasury.gov. If you have general questions about Treasury’s Coronavirus State and Local Fiscal Recovery Funds program, please contact us via email at SLFRF@treasury.gov.