American Rescue Plan Act of 2021
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.
CLFRF Funding Breakdown
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
|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.
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 firstname.lastname@example.org.
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.