Fiscal Recovery Fund Overview FAQ

Get answers to common FRF questions

What are the Coronavirus State and Local Fiscal Recovery Funds?

Established by the American Rescue Plan Act of 2021 (ARPA) the Coronavirus State and Local Fiscal Recovery Program (SLFRP) provides $350 billion in emergency fiscal recovery funding (FRF) for eligible state, local, territorial, and Tribal governments. All state and local governments are eligible for some amount of aid to respond to acute pandemic needs, fill revenue shortfalls, and provide much needed support to populations hardest-hit by COVID-19.  

All state, Tribal, county, territorial, and local governments are eligible for funds. All governments except non-metropolitan local governments (e.g. towns, villages, and smaller cities) will receive their funding by submitting an application through the Treasury Submission Portal.

Smaller local governments will receive their funds through their state government. Details on this process are available from the Treasury.

Type of governmentAmount ($ billions)
States & District of Columbia$195.3
Metropolitan cities$45.6
Tribal governments$20.0
Non-entitlement units of local government$19.5
From US Treasury

To find out how much your state, county, and local government will receive, visit our up-to-date page of estimates.

Funds will begin to arrive in May 2021. Most local governments will receive funds in two equal payments, 12 months apart. One exception is states or U.S. territories with a large net increase in unemployment, which are eligible to receive their full funding in 2021 in two payments, one in May and one in June, rather than waiting a year for the second payment. The second exception is “non-entitlement units” of local government (towns and smaller cities), which will receive their payments from states rather than the Treasury.

Treasury estimates that 30 state governments will be subject to split payments as of May 10, 20201. Follow the link for the list by state.

The funds must be obligated by December 31, 2024. This does not necessarily mean expenses must be incurred by then.​*​ The regulations intentionally adopt a flexible approach to the timeline for spending funds to give state and local governments the most options in how to use these funds to promote a robust and successful recovery.

The intent of these funds is to respond to needs created by the pandemic and rebuild a stronger, more equitable economy as the country recovers. To meet these goals Treasury has adopted permissive guidance that gives state and local governments flexibility to serve their community. Treasury lists seven categories of possible fund uses:

  1. Supporting the public health response
  2. Addressing the negative economic impacts of the public health emergency
  3. Serving hardest-hit communities and families
  4. Replacing lost public sector revenue
  5. Providing premium pay for essential workers
  6. Investing in water and sewer infrastructure
  7. Investing in broadband infrastructure
  1. States and Tribal governments may not offset tax cuts using Fiscal Recovery Funds (FRF)
  2. No recipient may make an extraordinary contribution to pay down an unfunded pension liability

Civilytics has summarized all of the key provisions related to eligible uses of the funds, categorizing them in an easy-to-digest format.

  1. ​*​
    The definition of “obligation” is based on the definition used for purposes of the Uniform Guidance which is a definition that most recipients are familiar with (p.97-98 of the Interim Final Rule).