Counties Welcome Launch of Treasury’s Coronavirus State and Local Fiscal Recovery Funds

WASHINGTON – The U.S. Department of the Treasury today launched the $362 billion Coronavirus State and Local Fiscal Recovery Funds, part of the American Rescue Plan Act of 2021 that was signed into law by President Biden on March 11. This is an important step in enabling counties to make necessary investments in local communities.

The legislation includes $65.1 billion in direct, flexible aid to every county in America, as well as other crucial investments, including $1.5 billion over two years for federal public lands. The State and Local Coronavirus Fiscal Recovery Fund legislation is the largest direct federal investment in counties in history.

Included in the guidance is the flexibility to use Recovery Funds to invest in broadband infrastructure, services and programs to contain and mitigate the spread of COVID-19, including capital investments in public facilities, payroll and covered benefits expenses for public health, health care, human services, public safety and similar employees, investments in housing and neighborhoods, and other guidance counties advocated for.

National Association of Counties Executive Director Matthew Chase said:

Counties thank the White House and Treasury Department for partnering with us to develop practical implementation guidance on the State and Local Coronavirus Fiscal Recovery Funds. This aid represents an historic investment in counties on the front lines of our nation’s coronavirus response and recovery efforts.

“With new resources from the American Rescue Plan, we will invest in our communities, including small businesses, nonprofits, vaccine distribution, public health and safety, human services, especially for those suffering from domestic violence, mental illnesses and substance use disorders, and much-needed infrastructure.

“Today’s guidance will assist counties in building stronger, more resilient communities for the future. The American Rescue Plan advances us on the road to recovery, honors our frontline heroes, and equips us to help end the pandemic and drive economic recovery.”

America’s 3,069 county governments support over 1,900 local public health departments, nearly 1,000 hospitals and critical access clinics, more than 800 long-term care facilities and 750 behavioral health centers. Additionally, county governments are responsible for emergency operations centers and 911 services, court and jail management, public safety and emergency response, protective services for children, seniors and veterans, and the “last of the first responders” with coroners and medical examiners.

View NACo’s analysis of the Coronavirus State and Local Fiscal Recovery Funds, including county-by-county funding estimates, here.

Read NACo’s letter to the U.S. Treasury on implementation of the Coronavirus State and Local Fiscal Recovery Fund here.

Visit NACo’s comprehensive COVID-19 clearinghouse here.