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Treasury Department Issues Rule on Fiscal Recovery Funds

As part of the American Rescue Plan Act of 2021, the federal government approved $350 billion in funding for state, local, metropolitan city, and tribal governments impacted by COVID-19 to allocate through Dec. 31, 2024, and use by 2026.

The Department of Treasury recently released an interim final rule related to the distribution and allocation of these funds. Eligible governments can request funds directly from the department using the Treasury Submission Portal, which became available May 10.

Recipients can use funds to:

  • support public health expenditures, such as mitigation, medical expenses, and behavioral health care, in addition to covering payroll and benefit expenses for public health and human service employees involved in the COVID-19 response;
  • address negative economic impacts caused by the public health emergency;
  • serving the hardest-hit communities and families, by providing unique support to areas that are disproportionately impacted;
  • replacing lost public sector revenue;
  • providing premium pay for essential workers; and
  • investing in water, sewer, and broadband infrastructure.

In addition, the department has published detailed allocation information for the funds by locality.

Contact Senior Director of Policy Erin O’Malley at or 202.585.0127 with questions.


About the Author

Abigail Painchaud is a policy associate at America's Essential Hospitals.

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