Coronavirus State and Local Fiscal Recovery Funds

The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program authorized by the American Rescue Plan Act, delivers $350 billion to state, territorial, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency.

Program recipients with questions about reporting, technical issues, eligible uses of funds, or other items click here for self-service resources.

Through SLFRF, over 30,000 recipient governments across the country are investing these funds to address the unique needs of their local communities and create a stronger national economy by using these essential funds to:

Fight the pandemic and support families and businesses struggling with its public health and economic impacts
Maintain vital public services, even amid declines in revenue resulting from the crisis
Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity

The 2022 Final Rule for the program took effect on April 1, 2022. Recipients and stakeholders are also encouraged to consult the Overview of the 2022 Final Rule, which provides a summary of Final Rule provisions for informational purposes, the 2022 Final Rule Frequently Asked Questions, which provide additional guidance on how recipients can use funds, and for Tribal governments, the Tribal government fact sheet, which contains highlights of the 2022 final rule relevant to Tribal governments. For more details, visit the 2022 Final Rule section below.

In December 2022, Congress amended the SLFRF program through the Consolidated Appropriations Act, 2023, providing additional flexibility for recipients to use SLFRF funds to respond to natural disasters, build critical infrastructure, and support community development. Treasury issued the 2023 Interim Final Rule implementing the amendments to the SLFRF program.

In November 2023, Treasury also issued an Obligation Interim Final Rule to address recipients’ questions regarding the definition of “obligation” and provide related guidance.

Use of Funds

The 2022 Final Rule describes how recipients may use SLFRF funds to:

Replace lost public sector revenue, using this funding to provide government services up to the amount of revenue lost due to the pandemic
Respond to the far-reaching public health and negative economic impacts of the pandemic, by supporting the health of communities, and helping households, small businesses, impacted industries, nonprofits, and the public sector recover from economic impacts
Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical sectors
Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, to support vital wastewater and stormwater infrastructure, and to expand affordable access to broadband internet

For questions about how the end of the COVID-19 National Emergency impacts these uses of funds, please see FAQ 4.11 in the Final Rule FAQs.

Additionally, the 2023 Interim Final Rule describes three additional eligible uses of SLFRF funds:

Emergency relief from natural disasters or their negative economic impacts, providing emergency relief from the physical and economic impacts of natural disasters.
Surface transportation projects, utilizing funds for eligible projects through three pathways.
Title I projects, investing in eligible activities under the CDBG and ICDBG programs, as listed in section 105(a) of the Housing and Community Development Act of 1974.

The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each recipient to meet local needs within these eligible use categories.

2022 Final Rule

Funding from the Coronavirus State and Local Fiscal Recovery Funds is subject to the requirements specified in the 2022 Final Rule released by Treasury on January 6, 2022. Treasury released an Overview of the 2022 Final Rule, which provides a summary of major rule provisions to assist recipients and stakeholders.

The 2022 Final Rule took effect on April 1, 2022, though recipients could choose to take advantage of its flexibilities and simplifications when Treasury released the final rule on January 6, 2022. Recipients may consult the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule for more information on compliance with the 2021 Interim Final Rule and the 2022 Final Rule.

2023 INTERIM FINAL RULE

In December 2022, Congress amended the SLFRF program through the Consolidated Appropriations Act, 2023, providing additional flexibility to use SLFRF funds to respond to natural disasters, build critical infrastructure, and support community development. Treasury issued the 2023 Interim Final Rule implementing the amendments and is seeking feedback from the public on all aspects of the Interim Final Rule. Treasury released an Overview of the 2023 Interim Final Rule, which provides a summary of major rule provisions to assist recipients and stakeholders.

Treasury is accepting comments on the 2023 Interim Final Rule. Comments may be submitted through the Federal eRulemaking portal or by mailing comments to the address provided in the Interim Final Rule. All comments should be captioned “Coronavirus State and Local Fiscal Recovery Funds 2023 Interim Final Rule Comments.”

OBLIGATION INTERIM FINAL RULE

In November 2023, Treasury issued an Obligation Interim Final Rule to address recipients’ questions regarding the definition of “obligation” and provide related guidance and clarifications. Treasury also released an Obligation Interim Final Rule Quick Reference Guide, which provides a summary of the Obligation Interim Final Rule to assist recipients and stakeholders.

Treasury is accepting comments on the Obligation Interim Final Rule. Comments may be submitted through the Federal eRulemaking portal or by mailing comments to the address provided in the Obligation Interim Final Rule. All comments should be captioned “Coronavirus State and Local Fiscal Recovery Funds Obligation Interim Final Rule Comments.”

RESOURCES ON DETERMINING ELIGIBLE USES OF FUNDS UNDER THE FINAL RULE

The 2022 Final Rule provides rule text and supplemental information.

The 2022 Overview of the Final Rule provides a summary of major rule provisions for informational purposes and is intended as a brief, simplified user guide for recipients and stakeholders.

The 2022 Final Rule FAQs provide responses to frequently asked questions regarding the use of funds under the 2022 Final Rule. These FAQs will be updated to address the 2023 Interim Final Rule.

The Department of Treasury and the Department of Housing and Urban Development partnered to create the Affordable Housing How-To Guide The purpose of the guide is to assist recipients in implementing their funds for affordable housing. It provides a summary of relevant SLFRF guidance and provides information on ways recipients can combine different sources of federal funds.

The Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds 2021 Interim Final Rule and 2022 Final Rule provides guidance on the transition from compliance with the 2021 Interim Final Rule to compliance with the 2022 Final Rule.

Tool for Determining Low and Moderate Income (LMI) Households provides a spreadsheet to assist recipients in determining income thresholds for the 2022 Final Rule’s definition of LMI in their jurisdiction and assist with administering the public health and economic response provisions of the Final Rule.

The 2022 Final Rule webinar and slide presentation provide an introduction and summary of the 2022 Final Rule.

The 2023 Interim Final Rule provides the 2023 interim final rule text and supplemental information for the new uses provided in the Consolidated Appropriations Act, 2023.

The Overview of the 2023 Interim Final Rule provides a summary of rule provisions for the new uses outlined in the Interim Final Rule for informational purposes and is intended as a brief, simplified user guide for recipients and stakeholders.

The 2023 Interim Final Rule webinar and slide presentation provide an introduction and summary of the 2023 Interim Final Rule.

The Obligation Interim Final Rule provides amended rule text and supplementary information in response to recipients’ questions regarding the definition of “obligation.”

The Obligation Interim Final Rule Quick Reference Guide provides a summary of the Obligation Interim Final Rule to assist recipients and stakeholders.

The 2023 Obligation Interim Final Rule webinar and slide presentation provide an introduction and summary of the 2023 Obligation Interim Final Rule.

HOW TO REQUEST FUNDING

Eligible state, territorial, metropolitan city, county, and Tribal governments may request their allocation of Coronavirus State and Local Fiscal Recovery Funds through the Treasury Submission Portal.

RECIPIENT COMPLIANCE AND REPORTING

Recipients are required to comply with Treasury’s Compliance and Reporting Guidance and meet compliance and reporting responsibilities defined in the Final Rule, which includes submitting mandatory periodic reports to Treasury.

Recipients’ reporting requirements vary by the type and amount of funds received.

Additional Information on Compliance and Reporting

2023 SLFRF Compliance Supplement

2022 SLFRF Compliance Supplement

2021 SLFRF Compliance Supplement and Technical Update

funding Amounts

Congress has allocated Coronavirus State and Local Fiscal Recovery Funds to tens of thousands of eligible state, local, territorial, and Tribal governments. These allocations include:

Type	Amount
States & District of Columbia	$195.3
Counties	$65.1
Metropolitan Cities	$45.6
Tribal Governments	$20.0
Territories	$4.5
Non-entitlement Units of Local Government	$19.5

ALLOCATION INFORMATION

Treasury has published detailed allocation information for the Coronavirus State and Local Fiscal Recovery Funds:

Additional information regarding allocations for non-entitlement units and Tribal governments may be found below.

Non-Entitlement Units

The Coronavirus Local Fiscal Recovery Fund provides $19.53 billion to support non-entitlement units of local government (NEUs), which are local governments typically serving a population under 50,000. Treasury has made payments to states and territories, which are in the process of distributing amounts to eligible NEUs in their jurisdiction in accordance with the guidelines established by Treasury.

Additional Information on Non-entitlement Units

Tribal Governments

The Coronavirus State Fiscal Recovery Fund provides $20 billion to support Tribal governments.

Additional Information for Tribal Governments

To protect the privacy of Tribal government information, each Tribal government will receive its allocation amount after submitting its request for funding in the Treasury Submission Portal.

TRANCHING OF FUNDS

Local governments will receive funds in two tranches, with 50% provided beginning in May 2021 and the balance delivered approximately 12 months later. States that have experienced a net increase in the unemployment rate of more than 2 percentage points from February 2020 to the latest available data as of the date of certification will receive their full allocation of funds in a single payment; other states will receive funds in two equal tranches. Governments of U.S. territories will receive a single payment. Tribal governments will receive two payments, with the first payment available in May and the second payment, based on employment data, to be delivered in June 2021.

More detailed information about funding amounts can be found in the allocation tables above.

Treasury has obligated and distributed 99.9% of funds to eligible state, territorial, local, and Tribal governments across the country, which are being used to make a difference in communities.

Additional Information on Split Payments to State Governments