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Coronavirus Local Fiscal Recovery Fund for Non-Entitlement Units of Local Government (NEUs)
Under the American Rescue Plan Act of 2021, the Coronavirus Local Fiscal Recovery Fund (CLFRF) provides emergency funding for eligible local governments. The U.S. Treasury manages the distribution of these funds to Texas counties and cities with populations above 50,000. Cities, villages, towns, and townships serving populations of less than 50,000 are classified as non-entitlement units of local government (NEUs) and will receive funding distributed by TDEM.
Texas Received: $10.5 billion
Texas Counties w/ Direct U.S. Treasury Payments: $5.7 billion
Texas Cities w/ Direct U.S. Treasury Payments (Populations 50,000+): $3.4 billion
Texas Cities not Receiving Direct U.S. Treasury Payments: $1.386 billion
All allocations are population based, with the largest funding amounts going to those jurisdictions with the largest populations.
What do I do if I am…? A county or city with population above 50,000?Your jurisdiction should have received funds. No further action is necessary. A unit of local government with a population under 50,000?An authorized representative must review, sign, and submit the Terms and Conditions and submission documents below in order to receive funding through TDEM.
The Texas Division of Emergency Management (TDEM) is writing to inform you that the state will soon announce the availability of Coronavirus Local Fiscal Recovery Funds (CLFRF). Distribution of funds is based on allocations in this document that are calculated on a population basis. No NEU may receive funds in excess of 75 percent of its most recent budget as of January 27, 2020.
The Texas Division of Emergency Management (TDEM) will manage the application process, payment of funds, and communications from the Treasury Department. Under this program, NEUs will not submit expenditures to TDEM for review.
Under Section 602 of the Social Security Act, as added by Section 9901 of the American Rescue Plan Act of 2021, these funds may only be used to cover costs incurred 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 NEU 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 to the extent of the reduction in revenue of the NEU government due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year of the NEU prior to the emergency; or
D) to make necessary investments in water, sewer, and broadband infrastructure
NEUs may not use any portion of these funds for deposit into any pension fund.
TO START THE PROCESS BY WHICH YOU RECEIVE FUNDING, AN AUTHORIZED INDIVIDUAL MUST REVIEW, AGREE TO THE TERMS AND CONDITIONS AND SIGN THE SUBMISSION PACKAGE. THIS SIGNED DOCUMENTATION MUST BE SUBMITTED TO THE STATE’S GRANTS MANAGEMENT SYSTEM (GMS) WEBSITE.
NEUS THAT DO NOT WISH TO PARTICIPATE SHOULD COMPLETE A DECLINATION FORM AND EMAIL IT TO CRF@TDEM.TEXAS.GOV
IF YOU HAVE ANY QUESTIONS, PLEASE EMAIL CRF@TDEM.TEXAS.GOV
If you already have an account in GMS, skip to Step 4. If you do not have a GMS account, begin your registration in GMS by clicking on the blue Register button and completing the registration screen. Select 2021CLFRF – Coronavirus Local Fiscal Recovery Fund (CLFRF) (SPA) (Request for Assistance) from the drop-down menu.
Download the Designation of Account Approval form. Follow the instructions on the form and email to tdem.gms@tdem.texas.gov.
You will receive an email with a user ID and temporary password for GMS access.
Login to TDEM GMS and submit a request for assistance under program 2021CLFRF. Instructions for submission are located at this link.
You will receive an explanatory email with instructions for completing and submitting the Terms and Conditions, Assurances of Compliance with Civil Rights Requirements, Direct Deposit Authorization forms, W-9, NEU Budget/Expenditure Certification, and SAM.gov registration information.
The Texas Division of Emergency Management (TDEM) coordinates the state emergency management program, which is intended to ensure the state and its local governments respond to and recover from emergencies and disasters, and implement plans and programs to help prevent or lessen the impact of emergencies and disasters.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. §§ 5121-5207 (the Stafford Act) §401 states in part that: “All requests for a declaration by the President that a major disaster exists shall be made by the Governor of the affected State.”
The Texas Governor may request an emergency declaration in advance or anticipation of the imminent impact of an incident that threatens such destruction as could result in a major disaster. Such requests must meet all of the statutory and regulatory requirements for an emergency declaration request. Requests must demonstrate the existence of critical emergency protective measure needs prior to impact are beyond the capability of the State of Texas and identify specific unmet emergency needs that can be met through Direct Federal Assistance (DFA). Such DFA may include, but is not limited to, personnel, equipment, supplies, and evacuation assistance. Pre-positioning of assets generally does not require a declaration. Assistance made available under a pre-disaster emergency declaration will typically be Category B (emergency protective measures), limited to DFA. FEMA may require damage assessments and/or verified cost estimates if additional types of assistance are requested.
When an emergency exists for which the primary responsibility rests with the Federal government, the President may declare an emergency without a request from the Texas Governor. Such an emergency declaration does not prevent the Governor from subsequently requesting a major disaster declaration for other unmet needs caused by the event.
The President can declare a major disaster for any natural event, including any hurricane, tornado, storm, high water, wind-driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought, or, regardless of cause, fire, flood, or explosion, that the President determines has caused damage of such severity that it is beyond the combined capabilities of state and local governments to respond. A major disaster declaration provides a wide range of federal assistance programs for individuals and public infrastructure, including funds for both emergency and permanent work.
If it is apparent that a Presidential disaster declaration may be necessary to assist in the recovery of the impacted area, TDEM will coordinate with the FEMA Region 6 office and request a joint Federal, State/Tribal Preliminary Damage Assessment (PDA). Local government representatives should be included, if possible. Together, the team will conduct a thorough assessment of the impacted area to determine the extent of the disaster, its impact on individuals and public facilities, and the types of federal assistance that may be needed. This information is included in the Governor’s request to show that the disaster is of such severity and magnitude that effective response is beyond the capabilities of the State and the affected local governments or Indian tribal government and that supplemental federal assistance is necessary.