U.S. Treasury launches guidance for Covid relief under the American rescue plan act
- where unemployment rate is two percentage points above February 2020 rate, can receive funding in single payment. State funding totals $195.3 billion
- with less than two percentage point increase in unemployment rate will receive funds in 2 payments, a year apart
- eligible local governments should expect funding in two tranches with the first in May and the second in May 2022
- allowed uses for funds include replacing revenues lost to pandemic premium pay for essential workers, public health expenditures, addressing negative economic impacts from pandemic
- will also allow funds to be invested in water, sewer, broadband infrastructure
- states, territories may not use funds to offset net revenue reductions from tax law changes between March 3 and last day of fiscal year in which funds are spent
- note state/local recipient may use funds to make a deposit to a pension fund
