How and where to apply for CARES Act 2.0 funds
Treasury has announced that first submissions must be received by May 24, 2021 for funding from the American Rescue Plan Act for governments
On Monday, the Department of Treasury released much anticipated documents related to the American Rescue Plan funding for state, local, and Tribal governments. This funding, informally dubbed “CARES Act 2.0”, provides much needed relief to Indian Country.
The American Rescue Plan Act was signed into law on March 11, 2021. It included $31.2 billion of dedicated funding for Tribal governments and Native communities.
Like the Coronavirus Relief Fund (“CRF”) created with the passage of the CARES Act, the American Rescue Plan expands on this idea with the creation the Coronavirus State Fiscal Recovery Fund and the Coronavirus Local Fiscal Recovery Fund. Together, these are known as the “the Fiscal Recovery Funds.”
The Fiscal Recovery Funds include a set aside of $20 billion for Tribal governments, with a mandate to be distributed within 60 days. This more than doubles the $8 billion set aside for Tribes in the Coronavirus Relief Fund of the CARES Act.
Action needed by Tribal governments
Tribal governments must submit their enrollment data through the Treasury Submission Portal by May 24, 2021.
Tribal governments must confirm or amend their 2019 employment numbers previously submitted to Treasury by June 7, 2021.
If a Tribe fails to submit their data by the deadline, they risk not receiving the related payment.
Allocation method and payments
Similar the Coronavirus Relief Fund, the Fiscal Recovery Funds will be distributed in two payments. The first payment will consist of an equal distribution of $1 billion, plus 65% of the remaining $19 billion. The first payment will be based on enrollment allocation.
The second payment, consisting of the remaining 35% of the $19 billion, will be allocated based on 2019 employment data.
Allocation of the Fiscal Recovery Funds notably is not based on HUD IHBG data.
Other set aside programs
While the Fiscal Recovery Funds account for $20 billion of the $31.2 billion set aside for Tribal governments, the remaining $11.2 billion presents significant opportunities for Tribes to recover pandemic-related losses.
Below is a summary of targeted assistance that rounds out the $11.2 billion (approximate numbers):
$6 billion for Native health systems
$1.248 billion for HUD Tribal and Native housing programs
$1.1+ billion for Native education programs
$1 billion for Native families
$900 million for Bureau of Indian Affairs programs
$600 million for Native communities’ critical economic and infrastructure investments
$20 million to mitigate the impact of COVID-19 on Native language
$19 million for Native communities’ efforts to combat domestic violence
Non-targeted programs that Tribes may consider
The American Rescue Plan Act is a $1.9 trillion behemoth. In addition to the $31.2 billion specifically set aside for Tribal governments and Native communities, the Act contains provisions that apply more broadly.
Examples of such programs may be:
Modifications to paycheck protection program
Targeted EIDL advance
Support for restaurants
Shuttered venue operators
Extension of emergency unemployment relief for governmental entities and nonprofit organizations
Extension of employee retention credit
Summing it up
As information continues to be released, refer back to this newsletter for updates. Treasury appears to be taking a more deliberate approach this go around. While we hope that means fewer versions of guidance and FAQ documents, I am happy to interpret the details as they become available.