Coronavirus State and Local Fiscal Recovery Funds

On May 10, 2021, the U.S. Department of the Treasury announced the Interim Final Rule to implement the Coronavirus State Fiscal Recovery Fund and the Coronavirus Local Fiscal Recovery Fund (Coronavirus Recovery Fund) established under the American Rescue Plan Act. The Coronavirus Recovery Fund provides $350 billion to state and local governments to address the fiscal effects of the pandemic. Available to be utilized through December 31, 2024, these funds can be applied towards acute pandemic-response needs, to fill revenue shortfalls among state and local governments and to support the communities and populations hardest-hit by the COVID-19 crisis. Eligible state, territorial, tribal, county, metropolitan city and other local governments will be able to access the funds directly from the Department of Treasury to assist their communities as they recover from the pandemic.

Of the $350 Billion allocated to the COVID-19 Recovery Fund, $220 billion will be provided to state, tribal, and territory governments as the State Coronavirus Fiscal Recovery Fund, and $130 Billion provided to local governments as the Local Coronavirus Fiscal Recovery Fund. Capital from the Coronavirus Recovery Fund can be utilized in a variety of ways:

 

		Public Health Response: Fund COVID-19 public health mitigation and response efforts including vaccination programs, testing, contact tracing, medical services, payroll for medical staff, public health surveillance, enhancements to health care capacity, and ventilation improvements in congregate settings.
		Address Negative Economic Impacts: Address economic harm to local workers and industries such as tourism, travel, and hospitality by assisting in reopening businesses and organizations that were closed during the pandemic, make needed improvements to ventilation, provide physical barriers or partitions, provide signage, and restart planned expansions or upgrades of tourism, travel, or hospitality facilities that were delayed due to the pandemic.
		Replace Public Sector Revenue Losses: Replace lost revenue that would have otherwise funded a government service. Loss is measured relative to the revenue collected in the most recent full fiscal year prior to the Pandemic.
		Premium Pay for Essential Workers: Cover premium and hazard pay to workers performing essential tasks during the pandemic.
		Water and Sewer Infrastructure: Make necessary investments to improve access to clean drinking water and invest in wastewater and stormwater infrastructure.
		Broadband Infrastructure: Mae necessary investments to provide unserved or underserved locations with new or expanded broadband access.

BDO recognizes the significant impact that COVID-19 has placed on states and local jurisdictions throughout the United States and is committed to helping these communities work towards a full recovery and further investment in resilience. Through the utilization of our industry and financial management expertise, our professionals can assist government agencies in the administration of these funds to ensure the intended impact is fully realized. BDO can help address the key issues facing your business in a variety of ways:

 

		Strategic Analysis and Planning of State and Local Recovery Fund applications.
		Complementary funding source (e.g. CARES, ARPA, etc.) leveraging, unification, and utilization strategy development.
		Fiscal controls environment development/improvement and monitoring.
		Fund disbursement monitoring and evaluation services.
		Prepare Interim and Quarterly Project and Expenditure Reports.
		Design, administer, and close out projects and programs funded through the Coronavirus Recovery Fund or other funding/grant sources.