42 USC 803 - Coronavirus local fiscal recovery fund

U.S Code last checked for updates: May 07, 2026

§ 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

(C)

Distribution to nonentitlement units of local government

(i)

In general

(ii)

Distribution of funds

(I)

Extension for distribution

(II)

Additional extensions

(aa)

In general

If 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

(c)

Requirements

(1)

Use of funds

Subject 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—

(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 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;

(C)

for the provision of government services up to an amount equal to the greater of—

(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

(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)

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 general

Subject 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

(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)

Limitations; application of requirements

(i)

Limitation on amounts to be used for infrastructure projects

(I)

In general

The 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 requirements

Except 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

 So in original.

shall apply to funds provided under a payment made under this section that are used for projects described in

(iv)

Oversight

(v)

Supplement, not supplant

(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.)

cite as: 42 USC 803