State and local governments will be forced to return pandemic relief funds if they aren’t properly obligated by the end of December.
In Brief:
- State and local governments received $350 billion to help them recover from pandemic impacts through the State and Local Fiscal Recovery Fund, a program of the American Rescue Plan.
- They have until 2026 to spend this money, but any that is not obligated by the end of this year will have to be returned.
- Some jurisdictions are finding last-minute strategies to protect their awards.
State and local governments are scrambling to ensure they don’t lose any of the federal funds they received through the State and Local Fiscal Recovery Fund. They have a Dec. 31 deadline to obligate these dollars; anything unobligated at that time must be returned to the Department of the Treasury.
governing.com
by Carl Smith
Dec.13, 2024