U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule
U.S. Department of the Treasury
• Eligible uses for assistance to impacted households include aid for re-
employment, job training, food, rent, mortgages, utilities, affordable housing
development, childcare, early education, addressing learning loss, and many
more uses.
• Eligible uses for assistance to impacted small businesses or nonprofits include
loans or grants to mitigate financial hardship, technical assistance for small
businesses, and many more uses.
• Recipients can also provide assistance to impacted industries like travel, tourism, and
hospitality that faced substantial pandemic impacts, or address impacts to the public
sector, for example by re-hiring public sector workers cut during the crisis.
• Recipients providing funds for enumerated uses to populations and groups that
Treasury has presumed eligible are clearly operating consistently with the final rule.
Recipients can also identify (1) other populations or groups, beyond those presumed
eligible, that experienced pandemic impacts or disproportionate impacts and (2) other
programs, services, or capital expenditures, beyond those enumerated, to respond to
those impacts.
• Provide premium pay for eligible workers performing essential work, offering additional
support to those who have and will bear the greatest health risks because of their service in
critical sectors.
• Recipients may provide premium pay to eligible workers – generally those working in-
person in key economic sectors – who are below a wage threshold or non-exempt from
the Fair Labor Standards Act overtime provisions, or if the recipient submits justification
that the premium pay is responsive to workers performing essential work.
• Invest in water, sewer, and broadband infrastructure, making necessary investments to
improve access to clean drinking water, to support vital wastewater and stormwater
infrastructure, and to expand affordable access to broadband internet.
• Recipients may fund a broad range of water and sewer projects, including those eligible
under the EPA’s Clean Water State Revolving Fund, EPA’s Drinking Water State
Revolving Fund, and certain additional projects, including a wide set of lead
remediation, stormwater infrastructure, and aid for private wells and septic units.
• Recipients may fund high-speed broadband infrastructure in areas of need that the
recipient identifies, such as areas without access to adequate speeds, affordable
options, or where connections are inconsistent or unreliable; completed projects must
participate in a low-income subsidy program.
While recipients have considerable flexibility to use funds to address the diverse needs of their
communities, some restrictions on use apply across all eligible use categories. These include:
• For states and territories: No offsets of a reduction in net tax revenue resulting from a change
in state or territory law.