Legal Alerts Jun 30, 2020

Coronavirus Relief Fund Dollars for California Municipalities and Counties

Certification Form Must be Submitted by July 10

Coronavirus Relief Fund Dollars for California Municipalities and Counties

California Gov. Gavin Newsom signed the 2020-21 budget directing how the State will distribute its $9.5 billion in Coronavirus Relief Funds provided under the CARES Acts. Municipalities or counties that did not receive direct allocations from the U.S. Treasury will receive a portion of the funds allotted to the State.

Of the $9.5 billion, $500 million will be disbursed to cities and $1.3 billion to counties. The funding can be used to cover expenditures in response to COVID-19, including the FEMA Public Assistance non-federal cost share. Expenses must have been incurred between March 1 and Dec. 30, 2020 and not previously accounted for in the most recent local budget.

The $500 million disbursement for cities will be divided into two subsections based on population:

  • $225 million will be allocated to cities with populations greater than 300,000 (provided they did not receive a direct allocation from the federal CARES Act).
  • $275 million will be provided to cities with populations less than 300,000, and no city will receive less than $50,000.

Allocations will be based on population and recipients are “encouraged to prioritize these funds to support efforts by counties and Continuums of Care to address the impact of the COVID-19 pandemic on people experiencing homelessness,” the Budget Summary states.

The $1.3 billion for counties will also be distributed based on their relative populations. County recipients are “encouraged to prioritize these funds to address the public heath, behavioral health, and other health and human services needs that have arisen as a result of the COVID-19 pandemic,” the Summary adds.

The Summary also states that “[f]unding is contingent on adherence to federal guidance, the state’s stay-at-home and other health requirements as directed in executive orders, statutes, and all State Department of Public Health orders, directives, and guidance issued in response to the COVID-19 pandemic.”

To receive funding, cities and counties must submit an application to the Department of Finance no later than July 10. The application certifies their agreement to comply with federal and state requirements. The Department of Finance has indicated the application process and  certification form will be available no later than July 1st on their website.

Disclaimer: BB&K Legal Alerts are not intended as legal advice. Additional facts, facts specific to your situation or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information herein.

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