The American Rescue Plan Act of 2021, a $1.9 trillion economic relief package, was signed by the president on March 11. Part of this package includes the Coronavirus State and Local Fiscal Recovery Fund, which provides approximately $350 billion in new federal fiscal assistance for states, territories, tribes, counties and municipalities. An additional $10 billion is available to states, territories and tribal governments for critical capital projects that directly enable work, education and health monitoring in response to COVID-19.
The Coronavirus State and Local Fiscal Recovery Fund allocations may be used by state and local governments to:
- Respond to the COVID-19 public health emergency and the negative economic impacts of the pandemic
- Cover premium pay to workers performing essential tasks during the pandemic
- Cover government revenue losses that are due to the pandemic
- Make necessary investments in water, sewer or broadband infrastructure.
You can learn more about the use and restrictions of these funds in The Council of State Governments report, “Analysis for States: The Coronavirus State and Local Fiscal Recovery Fund.”
CSG has broken out the impact of funding from the American Rescue Plan for each of its four regions — CSG East, CSG Midwest, CSG South and CSG West.
CSG East
The 14 states and territories of CSG East will receive $81.34 billion from the American Rescue Plan Act of 2021. Approximately 21% of the State Fiscal Recovery Fund ($47.13 billion) is allocated to Eastern region states and territories, and 25% of the Local Fiscal Recovery Fund ($32.03 billion) will go to these states and territories. From the Coronavirus Capital Projects Fund, an additional $2.18 billion (about 22% of the total fund) is allocated to states and territories in CSG East.
View the full report:
CSG Midwest
The 11 states of CSG Midwest will receive $61.6 billion from the American Rescue Plan Act of 2021. Approximately 15% of the State Fiscal Recovery Fund ($33.5 billion) is allocated to Midwestern region states, and 20% of the Local Fiscal Recovery Fund ($26 billion) will go to this region. From the Coronavirus Capital Projects Fund, an additional $2 billion (about 20% of the total fund) is allocated to the states in CSG Midwest.
View the full report:
CSG South
The 15 states of CSG South will receive $109.9 billion from the American Rescue Plan Act of 2021. Approximately 29% of the State Fiscal Recovery Fund ($64 billion) is allocated to Southern region states, and 33% of the Local Fiscal Recovery Fund ($42.59 billion) will go to this region. From the Coronavirus Capital Projects Fund, an additional $3.39 billion (about 34% of the total fund) is allocated to the states in CSG South.
View the full report:
CSG West
The 16 states, territories and tribal governments of CSG West will receive $86.9 billion from the American Rescue Plan Act of 2021. Approximately 25% of the State Fiscal Recovery Fund ($55.1 billion) is allocated to Western region states, territories and tribal governments, and 23% of the Local Fiscal Recovery Fund ($29.5 billion) will go to this region. From the Coronavirus Capital Projects Fund, an additional $2.29 billion (about 23% of the total fund) is allocated to the states, territories and tribal governments in CSG West.
View the full report: