Program

COVID-19 Federal Assistance e311

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Timing of Funds

Are payroll costs for public health, safety, and other public sector staff responding to COVID-19 incurred prior to March 3, 2021, eligible for reimbursement through the CSLFR grant?

The U.S. Department of the Treasury ("Treasury") Coronavirus State and Local Fiscal Recovery Funds ("CSLFRF") Interim Final Rule (the "Rule") specifies that Fiscal Recovery Funds cannot be used for expenses incurred prior to March 3, 2021.[1] This includes payroll costs for public health, safety, and other public sector staff responding to the COVID-19 public health emergency.

The Rule:

[P]ermits funds to be used to cover costs incurred beginning on March 3, 2021. This aligns the period for use of Fiscal Recovery Funds with the period during which these funds may not be used to offset reductions in net tax revenue. Permitting Fiscal Recovery Funds to be used to cover costs incurred beginning on this date will also mean that recipients that began incurring costs in the anticipation of enactment of the [American Rescue Plan Act of 2021 (“ARP”)] and in advance of the issuance of this rule and receipt of payment from the Fiscal Recovery Funds would be able to cover them using these payments. [2]

It may therefore be helpful for municipalities to explore other funding sources to reimburse relevant costs incurred prior to March 3, 2021. Other funding sources may include Federal Emergency Management Agency (“FEMA”) Public Assistance (“PA”)[3] or funding through the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) Coronavirus Relief Fund (“CRF”),[4] which impose less restrictive timelines on eligible expenses than CSLFRF.

Last Revised: August 26, 2021

[2] Id., at 99 (emphasis added).

[3] Public Assistance Disaster-Specific Guidance - COVID-19 Declarations | FEMA.gov, available at https://www.fema.gov/media-collection/public-assistance-disaster-specific-guidance-covid-19-declarations