Dividing the Fiscal Relief in the Coronavirus Relief Fund for States and Localities

Published: April 06, 2020

SLED Market AnalysisCoronavirus (COVID-19) PandemicPolicy and Legislation

The centerpiece of the CARES Act for the States is the $150 billion Coronavirus Relief Fund, which state, tribal, and local governments can use this year to meet costs connected to the virus. Below is some analysis that the Center on Budget and Policy Prorities did on potential State allocations.

With Congress passing the CARES Act toward the end of March, which will send $150 billion emergency funding to state and local governments, as well as tribes and territories. The legislation specifies that the money is only to be used for "necessary expenditures incurred due to the public health emergency."

CPPB estimates that state governments will receive about $110 billion of the total allocation, or 79 percent of the total that is not set aside for tribes, the District of Columbia, Puerto Rico and other territories. Local governments will receive the other 21 percent of the funds — about $29 billion. In 16 states, the state government will receive the entire allocation, since no localities in those states have 500,000 residents.

Each county and city exceeding the population threshold will receive funding based on the following formula:

  • Take 45 percent of the state’s total allocation. Multiply that by the local government’s share of the state population.

More money is available for a wide array of work such as telehealth, education and election security, construction for temporary health structures, as well as personal protective equipment. GovWin did some analysis on the major trends and elements of each funding stream that are most likely to include addressable spending for contractors in a variety of industries. Some further analysis can be accessed here as well.

In regards to the $150 million available to the States, here's a map showing how the nonprofit Center on Budget and Policy Priorities estimates that the funds will be distributed. 

For an interactive map of proposed allocation, please click here