2021 State and Local Recovery Funds: What you need to know today for technology modernization

2021 State and Local Recovery Funds: What you need to know today for technology modernization

Are you up to date on the current guidance from the Federal government on Coronavirus State and Local Fiscal Recovery Funds? Do you know where to find information and are you aware of how to apply for technology modernization projects?

According to Dr. Justin Marlowe, Research Professor in the University of Chicago, Harris School of Public Policy and Editor-in-Chief of Public Budgeting & Finance “There’s no centralized reporting to get this type of information from the federal government to local governments. So, it depends on the locality. In some regions they would probably hear from their state department of commerce, state treasurer, or state association/league of cities. In some it might be a regional council of governments or a county extension agent. And certainly, professional associations like the Government Finance Officers Association and the International City/County Management Association.”

The most current and recently released guidance on distribution and can be found on the Department of the Treasury website here.

Wading through all the caveats and distribution formulas may leave municipalities considering technology modernization projects wondering where that money comes from.

According to Joe Morris, Deputy Chief Innovation Officer, eRepublic, “The area where we may see states and localities draw from for technology modernization needs is using the funds from the calculation for lost public sector revenue. The intent of these funds is to provide valuable public services. Check out page 8 number 23 here.

The Department of the Treasury addresses this question directly:
“Once a recipient has identified a reduction in revenue, are there any restrictions on how recipients use funds up to the amount of the reduction?  The Interim Final Rule gives recipients broad latitude to use funds for the provision of government services to the extent of reduction in revenue. Government services can include, but are not limited to, maintenance of infrastructure or pay-go spending for building new infrastructure, including roads; modernization of cybersecurity, including hardware, software, and protection of critical infrastructure; health services; environmental remediation; school or educational services; and the provision of police, fire, and other public safety services.”

Congress has allocated Coronavirus State and Local Fiscal Recovery Funds to many eligible state, local, territorial, and Tribal governments.  These allocations include:


Type Amount ($ billions) 
States & District of Columbia $195.3
Counties $65.1
Metropolitan Cites $45.6
Tribal Governments $20.0
Territories $4.5
Non-Entitlement Units of Local Government $19.5

Here is the allocation methodology list for cities, citing all metropolitan areas and the amount to be received.

Request your funding here.

The clock is ticking on utilization of these funds, make sure that you understand your access to take full advantage of this opportunity to move your local government’s modernization agenda forward.



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