42 USC 802 - Coronavirus State fiscal recovery fund

Collapse to view only § 802. Coronavirus State fiscal recovery fund

§ 801. Coronavirus relief fund
§ 802. Coronavirus State fiscal recovery fund
§ 803. Coronavirus local fiscal recovery fund
§ 804. Coronavirus capital projects fund
§ 805. Local assistance and Tribal consistency fund
§ 806. Rescission of funds declined by States, territories, or other governmental entities

§ 801. Coronavirus relief fund

(a) Appropriation

(1) In general

(2) Reservation of fundsOf the amount appropriated under paragraph (1), the Secretary shall reserve—

(A) $3,000,000,000 of such amount for making payments to the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa; and

(B) $8,000,000,000 of such amount for making payments to Tribal governments.

(b) Authority to make payments

(1) In general

(2) Direct payments to units of local government

(1) In general

(2) Minimum payment

(A) In general

(B) Pro rata adjustments

(3) Relative population proportion amountFor purposes of paragraph (1), the relative population proportion amount determined under this paragraph for a State for fiscal year 2020 is the product of—

(A) the amount appropriated under paragraph (1) of subsection (a) for fiscal year 2020 that remains after the application of paragraph (2) of that subsection; and

(B) the relative State population proportion (as defined in paragraph (4)).

(4) Relative State population proportion definedFor purposes of paragraph (3)(B), the term “relative State population proportion” means, with respect to a State, the quotient of—

(A) the population of the State; and

(B) the total population of all States (excluding the District of Columbia and territories specified in subsection (a)(2)(A)).

(5) Relative unit of local government population proportion amountFor purposes of subsection (b)(2), the term “relative unit of local government population proportion amount” means, with respect to a unit of local government and a State, the amount equal to the product of—

(A) 45 percent of the amount of the payment determined for the State under this subsection (without regard to this paragraph); and

(B) the amount equal to the quotient of—

(i) the population of the unit of local government; and

(ii) the total population of the State in which the unit of local government is located.

(6) District of Columbia and territoriesThe amount paid under this section for fiscal year 2020 to a State that is the District of Columbia or a territory specified in subsection (a)(2)(A) shall be the amount equal to the product of—

(A) the amount set aside under subsection (a)(2)(A) for such fiscal year; and

(B) each such District’s and territory’s share of the combined total population of the District of Columbia and all such territories, as determined by the Secretary.

(7) Tribal governments

(8) Data

(d) Use of fundsA State, Tribal government, and unit of local government shall use the funds provided under a payment made under this section to cover only those costs of the State, Tribal government, or unit of local government that—

(1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19);

(2) were not accounted for in the budget most recently approved as of March 27, 2020, for the State or government; and

(3) were incurred during the period that begins on March 1, 2020, and ends on December 31, 2021 (or, in the case of costs incurred by a Tribal government, during the period that begins on March 1, 2020, and ends on December 31, 2022).

(e) Certification

(f) Inspector General oversight; recoupment

(1) Oversight authority

(2) Recoupment

(3) Appropriation

(4) Authority of Inspector General

(g) DefinitionsIn this section:

(1) Indian Tribe

(2) Local government

(3) Secretary

(4) State

(5) Tribal government

(Aug. 14, 1935, ch. 531, title VI, § 601, as added Pub. L. 116–136, div. A, title V, § 5001(a), Mar. 27, 2020, 134 Stat. 501; amended Pub. L. 116–260, div. N, title X, § 1001, Dec. 27, 2020, 134 Stat. 2145; Pub. L. 117–328, div. LL, § 104, Dec. 29, 2022, 136 Stat. 6105.)

§ 802. Coronavirus State fiscal recovery fund

(a) AppropriationIn addition to amounts otherwise available, there is appropriated for fiscal year 2021, out of any money in the Treasury not otherwise appropriated—

(1) $219,800,000,000, to remain available through December 31, 2024 (except as provided in subsection (c)(5)), for making payments under this section to States, territories, and Tribal governments to mitigate the fiscal effects stemming from the public health emergency with respect to the Coronavirus Disease (COVID–19); and

(2) $50,000,000, to remain available until expended, for the costs of the Secretary for administration of the funds established under this subchapter.

(b) Authority to make payments

(1) Payments to territories

(A) In general

(B) AllocationOf the amount reserved under subparagraph (A)—

(i) 50 percent of such amount shall be allocated by the Secretary equally to each territory; and

(ii) 50 percent of such amount shall be allocated by the Secretary as an additional amount to each territory in an amount which bears the same proportion to ½ of the total amount reserved under subparagraph (A) as the population of the territory bears to the total population of all such territories.

(2) Payments to Tribal governments

(A) In general

(B) AllocationOf the amount reserved under subparagraph (A)—

(i) $1,000,000,000 shall be allocated by the Secretary equally among each of the Tribal governments; and

(ii) $19,000,000,000 shall be allocated by the Secretary to the Tribal governments in a manner determined by the Secretary.

(3) Payments to each of the 50 States and the District of Columbia

(A) In general

(B) AllocationsOf the amount reserved under subparagraph (A)—

(i) $25,500,000,000 of such amount shall be allocated by the Secretary equally among each of the 50 States and the District of Columbia;

(ii) an amount equal to $1,250,000,000 less the amount allocated for the District of Columbia pursuant to section 801(c)(6) of this title shall be allocated by the Secretary as an additional amount to the District of Columbia; and

(iii) an amount equal to the remainder of the amount reserved under subparagraph (A) after the application of clauses (i) and (ii) of this subparagraph shall be allocated by the Secretary as an additional amount to each of the 50 States and the District of Columbia in an amount which bears the same proportion to such remainder as the average estimated number of seasonally-adjusted unemployed individuals (as measured by the Bureau of Labor Statistics Local Area Unemployment Statistics program) in the State or District of Columbia over the 3-month period ending with December 2020 bears to the average estimated number of seasonally-adjusted unemployed individuals in all of the 50 States and the District of Columbia over the same period.

(i) In general

(ii) Minimum payment requirement(I) In generalThe sum of—(aa) the total amounts allocated for 1 of the 50 States or the District of Columbia under subparagraph (B) (as determined without regard to this clause); and(bb) the amounts allocated under section 803 of this title to the State (for distribution by the State to nonentitlement units of local government in the State) and to metropolitan cities and counties in the State;

shall not be less than the amount allocated to the State or District of Columbia for fiscal year 2020 under section 801 of this title, including any amount paid directly to a unit of local government in the State under such section.

(II) Pro rata adjustment

(4) Pro rata adjustment authority

(5) Population data

(6) Timing

(A) States and territories

(i) In general

(ii) Authority to split payment(I) In general(II) Payment of withheld amount(III) Recovery of amounts subject to recoupment

(B) Tribal governments

(1) Use of fundsSubject to paragraph (2), and except as provided in paragraphs (3), (4), and (5), a State, territory, or Tribal government shall only use the funds provided under a payment made under this section, or transferred pursuant to section 803(c)(4) of this title, to cover costs incurred by the State, territory, or Tribal government, by December 31, 2024—

(A) to respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19) or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;

(B) to respond to workers performing essential work during the COVID–19 public health emergency by providing premium pay to eligible workers of the State, territory, or Tribal government that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;

(i) the amount of the reduction in revenue of such State, territory, or Tribal government due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year of the State, territory, or Tribal government prior to the emergency; or

(ii) $10,000,000;

(D) to make necessary investments in water, sewer, or broadband infrastructure; or

(E) to provide emergency relief from natural disasters or the negative economic impacts of natural disasters, including temporary emergency housing, food assistance, financial assistance for lost wages, or other immediate needs.

(2) Further restriction on use of funds

(A) In general

(B) Pension funds

(3) Transfer authority

(4) Use of funds to satisfy non-federal matching requirements for authorized Bureau of Reclamation water projects

(5) Authority to use funds for certain infrastructure projects

(A) In generalSubject to subparagraph (C), notwithstanding any other provision of law, a State, territory, or Tribal government receiving a payment under this section may use funds provided under such payment for projects described in subparagraph (B), including, to the extent consistent with guidance or rules issued by the Secretary or the head of a Federal agency to which the Secretary has delegated authority pursuant to subparagraph (C)(iv)—

(i) in the case of a project eligible under section 117 of title 23 or section 5309 or 6701 of title 49 to satisfy a non-Federal share requirement applicable to such a project; and

(ii) in the case of a project eligible for credit assistance under the TIFIA program under chapter 6 of title 23—(I) to satisfy a non-Federal share requirement applicable to such a project; and(II) to repay a loan provided under such program.

(B) Projects describedA project referred to in subparagraph (A) is any of the following:

(i) A project eligible under section 117 of title 23.

(ii) A project eligible under section 119 of title 23.

(iii) A project eligible under section 124 of title 23, as added by the Infrastructure Investment and Jobs Act.

(iv) A project eligible under section 133 of title 23.

(v) An activity to carry out section 134 of title 23.

(vi) A project eligible under section 148 of title 23.

(vii) A project eligible under section 149 of title 23.

(viii) A project eligible under section 151(f) of title 23, as added by the Infrastructure Investment and Jobs Act.

(ix) A project eligible under section 165 of title 23.

(x) A project eligible under section 167 of title 23.

(xi) A project eligible under section 173 of title 23, as added by the Infrastructure Investment and Jobs Act.

(xii) A project eligible under section 175 of title 23, as added by the Infrastructure Investment and Jobs Act.

(xiii) A project eligible under section 176 of title 23, as added by the Infrastructure Investment and Jobs Act.

(xiv) A project eligible under section 202 of title 23.

(xv) A project eligible under section 203 of title 23.

(xvi) A project eligible under section 204 of title 23.

(xvii) A project eligible under the program for national infrastructure investments (commonly known as the “Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program”).

(xviii) A project eligible for credit assistance under the TIFIA program under chapter 6 of title 23.

(xix) A project that furthers the completion of a designated route of the Appalachian Development Highway System under section 14501 of title 40.

(xx) A project eligible under section 5307 of title 49.

(xxi) A project eligible under section 5309 of title 49.

(xxii) A project eligible under section 5311 of title 49.

(xxiii) A project eligible under section 5337 of title 49.

(xxiv) A project eligible under section 5339 of title 49.

(xxv) A project eligible under section 6703 of title 49, as added by the Infrastructure Investment and Jobs Act.

(xxvi) A project eligible under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.).

(xxvii) A project eligible under the bridge replacement, rehabilitation, preservation, protection, and construction program under paragraph (1) under the span “HIGHWAY INFRASTRUCTURE PROGRAM” under the span “FEDERAL HIGHWAY ADMINISTRATION” under the span “DEPARTMENT OF TRANSPORTATION” under title VIII of division J of the Infrastructure Investment and Jobs Act.

(i) Limitation on amounts to be used for infrastructure projects(I) In generalThe total amount that a State, territory, or Tribal government may use from a payment made under this section for uses described in subparagraph (A) shall not exceed the greater of—(aa) $10,000,000; and(bb) 30 percent of such payment.(II) Rule of application

(ii) Limitation on operating expenses

(iii) Application of requirementsExcept as otherwise determined by the Secretary or the head of a Federal agency to which the Secretary has delegated authority pursuant to clause (iv) or provided in this section—(I) the requirements of section 60102 of the Infrastructure Investment and Jobs Act [47 U.S.C. 1702] shall apply to funds provided under a payment made under this section that are used pursuant to subparagraph (A) for a project described in clause (xxvi) of subparagraph (B) that relates to broadband infrastructure;(II) the requirements of titles 23, 40, and 49, title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.), and the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et. seq) 1

1 So in original.

shall apply to funds provided under a payment made under this section that are used for projects described in subparagraph (B); and(III) a State government receiving a payment under this section may use funds provided under such payment for projects described in clauses (i) through (xxvii) of subparagraph (B), as applicable, that—(aa) demonstrate progress in achieving a state of good repair as required by the State’s asset management plan under section 119(e) of title 23; and(bb) support the achievement of 1 or more performance targets of the State established under section 150 of title 23.

(iv) Oversight

(v) Supplement, not supplant

(D) Reports

(E) Availability

(d) Certifications and reports

(1) In general

(2) ReportingAny State, territory, or Tribal government receiving a payment under this section shall provide to the Secretary periodic reports providing a detailed accounting of—

(A) the uses of funds by such State, territory, or Tribal government, including, in the case of a State or a territory, all modifications to the State’s or territory’s tax revenue sources during the covered period; and

(B) such other information as the Secretary may require for the administration of this section.

(e) RecoupmentAny State, territory, or Tribal government that has failed to comply with subsection (c) shall be required to repay to the Secretary an amount equal to the amount of funds used in violation of such subsection, provided that, in the case of a violation of subsection (c)(2)(A), the amount the State or territory shall be required to repay shall be lesser of—

(1) the amount of the applicable reduction to net tax revenue attributable to such violation; and

(2) the amount of funds received by such State or territory pursuant to a payment made under this section or a transfer made under section 803(c)(4) of this title.

(f) Regulations

(g) DefinitionsIn this section:

(1) Covered periodThe term “covered period” means, with respect to a State, territory, or Tribal government, the period that—

(A) begins on March 3, 2021; and

(B) ends on the last day of the fiscal year of such State, territory, or Tribal government in which all funds received by the State, territory, or Tribal government from a payment made under this section or a transfer made under section 803(c)(4) of this title have been expended or returned to, or recovered by, the Secretary.

(2) Eligible workers

(3) Premium pay

(4) Secretary

(5) State

(6) Territory

(7) Tribal Government

(Aug. 14, 1935, ch. 531, title VI, § 602, as added Pub. L. 117–2, title IX, § 9901(a), Mar. 11, 2021, 135 Stat. 223; amended Pub. L. 117–58, div. D, title IX, § 40909(a), Nov. 15, 2021, 135 Stat. 1126; Pub. L. 117–328, div. LL, § 102(a)(1), (b), Dec. 29, 2022, 136 Stat. 6097, 6103.)

§ 803. Coronavirus local fiscal recovery fund

(a) Appropriation

(b) Authority to make payments

(1) Metropolitan cities

(A) In general

(B) Allocation and payment

(2) Nonentitlement units of local government

(A) In general

(B) Allocation and payment

(i) In general

(ii) Distribution of funds(I) Extension for distribution(II) Additional extensions(aa) In generalIf a State has been granted an extension to the distribution period under subclause (I) but is unable to make all the distributions required under clause (i) before the end of such period as extended, an authorized officer of the State may request an additional extension of the distribution period of not more than 30 days. The Secretary may grant a request for an additional extension of such period only if—(AA) the authorized officer making such request provides a written plan to the Secretary specifying, for each distribution for which an additional extension is requested, when the State expects to make such distribution and the actions the State has taken and will take in order to make all such distributions before the end of the distribution period (as extended under subclause (I) and this subclause); and(BB) the Secretary determines that such plan is reasonably designed to distribute all such funds to nonentitlement units of local government by the end of the distribution period (as so extended).(bb) Further additional extensions

(iii) Capped amount

(iv) Return of excess amounts

(D) Penalty for noncompliance

(3) Counties

(A) Amount

(B) Special rules

(i) Urban counties

(ii) Counties that are not units of general local government

(iii) District of Columbia

(4) Consolidated governments

(5) Pro rata adjustment authority

(6) Population

(7) Timing

(A) First tranche amount

(B) Second tranche amount

(1) Use of fundsSubject to paragraph (2), and except as provided in paragraphs (3), (4), (5), and (6), a metropolitan city, nonentitlement unit of local government, or county shall only use the funds provided under a payment made under this section to cover costs incurred by the metropolitan city, nonentitlement unit of local government, or county, by December 31, 2024—

(B) to respond to workers performing essential work during the COVID–19 public health emergency by providing premium pay to eligible workers of the metropolitan city, nonentitlement unit of local government, or county that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;

(i) the amount of the reduction in revenue of such metropolitan city, nonentitlement unit of local government, or county due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year of the metropolitan city, nonentitlement unit of local government, or county to the emergency; or

(ii) $10,000,000;

(D) to make necessary investments in water, sewer, or broadband infrastructure; or

(2) Pension funds

(3) Transfer authority

(4) Transfers to States

(5) Use of funds to satisfy non-Federal matching, maintenance of effort, or other expenditure requirement

(6) Authority to use funds for certain infrastructure projects

(A) In generalSubject to subparagraph (B), notwithstanding any other provision of law, a metropolitan city, nonentitlement unit of local government, or county receiving a payment under this section may use funds provided under such payment for projects described in subparagraph (B) of section 802(c)(5) of this title, including, to the extent consistent with guidance or rules issued by the Secretary or the head of a Federal agency to which the Secretary has delegated authority pursuant to subparagraph (B)(iv)—

(i) in the case of a project eligible under section 117 of title 23 or section 5309 or 6701 of title 49 to satisfy a non-Federal share requirement applicable to such a project; and

(B) Limitations; application of requirements

(i) Limitation on amounts to be used for infrastructure projects(I) In generalThe total amount that a metropolitan city, nonentitlement unit of local government, or county may use from a payment made under this section for uses described in subparagraph (A) shall not exceed the greater of—(aa) $10,000,000; and(bb) 30 percent of such payment.(II) Rule of application

(ii) Limitation on operating expenses

(iii) Application of requirementsExcept as otherwise determined by the Secretary or the head of a Federal agency to which the Secretary has delegated authority pursuant to clause (iv) or provided in this section—(I) the requirements of section 1702 of title 47 shall apply to funds provided under a payment made under this section that are used pursuant to subparagraph (A) for a project described in clause (xxvi) of section 802(c)(5)(B) of this title that relates to broadband infrastructure; and(II) the requirements of titles 23, 40, and 49, title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.), and the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et. seq) 1

1 So in original.

shall apply to funds provided under a payment made under this section that are used for projects described in section 802(c)(5)(B) of this title.

(iv) Oversight

(v) Supplement, not supplant

(D) Availability

(d) Reporting

(e) Recoupment

(f) Regulations

(g) DefinitionsIn this section:

(1) County

(2) Eligible workers

(3) First tranche amount

(4) Metropolitan city

(5) Nonentitlement unit of local government

(6) Premium pay

(7) Second tranche amount

(8) Secretary

(9) State

(10) Unit of general local government

(Aug. 14, 1935, ch. 531, title VI, § 603, as added Pub. L. 117–2, title IX, § 9901(a), Mar. 11, 2021, 135 Stat. 228; amended Pub. L. 117–58, div. D, title IX, § 40909(b), Nov. 15, 2021, 135 Stat. 1126; Pub. L. 117–328, div. LL, § 102(a)(2), (b), Dec. 29, 2022, 136 Stat. 6101, 6103.)

§ 804. Coronavirus capital projects fund

(a) Appropriation

(b) Payments

(1) Minimum amountsFrom the amount appropriated under subsection (a)—

(A) the Secretary shall pay $100,000,000 to each State;

(B) the Secretary shall pay $100,000,000 of such amount in equal shares to the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau; and

(C) the Secretary shall pay $100,000,000 of such amount in equal shares to Tribal governments and the State of Hawaii (in addition to the amount paid to the State of Hawaii under subparagraph (A)), of which—

(i) not less than $50,000 shall be paid to each Tribal government; and

(ii) not less than $50,000, and not more than $200,000, shall be paid to the State of Hawaii for the exclusive use of the Department of Hawaiian Home Lands and the Native Hawaiian Education Programs to assist Native Hawaiians in accordance with this section.

(2) Remaining amounts

(A) In generalFrom the amount of the appropriation under subsection (a) that remains after the application of paragraph (1), the Secretary shall make payments to States based on population such that—

(i) 50 percent of such amount shall be allocated among the States based on the proportion that the population of each State bears to the population of all States;

(ii) 25 percent of such amount shall be allocated among the States based on the proportion that the number of individuals living in rural areas in each State bears to the number of individuals living in rural areas in all States; and

(iii) 25 percent of such amount shall be allocated among the States based on the proportion that the number of individuals with a household income that is below 150 percent of the poverty line applicable to a family of the size involved in each State bears to the number of such individuals in all States.

(B) Data

(d) DefinitionsIn this section:

(1) Secretary

(2) State

(3) Tribal government

(Aug. 14, 1935, ch. 531, title VI, § 604, as added Pub. L. 117–2, title IX, § 9901(a), Mar. 11, 2021, 135 Stat. 233.)

§ 805. Local assistance and Tribal consistency fund

(a) Appropriation

(b) Authority to make payments

(1) Payments to eligible revenue sharing counties

(2) Payments to eligible Tribal governments

(d) Reporting requirement

(e) RecoupmentAny eligible revenue sharing county or eligible revenue sharing consolidated government that has failed to submit a report required under subsection (d) or failed to comply with subsection (c), shall be required to repay to the Secretary an amount equal to—

(1) in the case of a failure to comply with subsection (c), the amount of funds used in violation of such subsection; and

(2) in the case of a failure to submit a report required under subsection (d), such amount as the Secretary determines appropriate, but not to exceed 5 percent of the amount paid to the eligible revenue sharing county or eligible revenue sharing consolidated government under this section for all fiscal years.

(f) DefinitionsIn this section:

(1) Eligible revenue sharing consolidated governmentThe term “eligible revenue sharing consolidated government” means a county, parish, or borough—

(A) that has been classified by the Bureau of the Census as an active government consolidated with another government; and

(B) for which, as determined by the Secretary, there is a negative revenue impact due to implementation of a Federal program or changes to such program.

(2) Eligible revenue sharing countyThe term “eligible revenue sharing county” means—

(A) a county, parish, or borough—

(i) that is independent of any other unit of local government; and

(ii) that, as determined by the Secretary, is the principal provider of government services for the area within its jurisdiction; and

(iii) for which, as determined by the Secretary, there is a negative revenue impact due to implementation of a Federal program or changes to such program; and

(B) the District of Columbia, the Commonwealth of Puerto Rico, Guam, and the United States Virgin Islands.

(3) Eligible Tribal government

(4) Eligible Tribe

(5) Secretary

(g) Payments to eligible revenue sharing consolidated governments

(1) Payments to eligible revenue sharing consolidated governments for fiscal years 2023 and 2024

(2) Funding for payments

(A) In general

(B) Amounts describedThe amounts described in this subparagraph are the following:

(i) Any amount allocated to an eligible revenue sharing county under subsection (b)(1) for fiscal year 2022 or 2023 that, as of January 31, 2023, has not been requested by such county.

(ii) Amounts made available to the Secretary under section 102(d)(4) of the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act.

(Aug. 14, 1935, ch. 531, title VI, § 605, as added Pub. L. 117–2, title IX, § 9901(a), Mar. 11, 2021, 135 Stat. 234; amended Pub. L. 117–328, div. LL, § 103, Dec. 29, 2022, 136 Stat. 6104.)

§ 806. Rescission of funds declined by States, territories, or other governmental entities

(a) Rescission

(1) In general

(2) Exclusion

(3) Rules of construction

Paragraph (1) shall not be construed as—

(A) preventing a sub-State governmental entity, including a nonentitlement unit of local government, from notifying the Secretary of the Treasury that the sub-State governmental entity intends to decline all or a portion of the amounts that a State may distribute to the entity from funds appropriated under this subchapter; or

(B) allowing a State to prohibit or otherwise prevent a sub-State governmental entity from providing such a notice.

(b) Use for deficit reduction

(Aug. 14, 1935, ch. 531, title VI, § 606, as added Pub. L. 117–328, div. LL, § 105, Dec. 29, 2022, 136 Stat. 6105.)