b'ViewpointsEach state receives $500 million and the remainder is allocated based on its States $195.3B unemployment rate. On average, the funds are equivalent to about 8.5 percent of a states annual budget, but the amount varies, ranging from 5 to 23 percent of astates budget.Each of the 3,006 counties receive funds based on either its share of the population Counties $65.1B or on the allocation formula used to distribute the Community DevelopmentBlock Grant, whichever is higher.Large cities $45.6B Each of 142 large cities receive funding based the allocation formula used to distribute the Community Development Block Grant.These remaining funds are divided among 19,000 communities. $24.5 is reserved for Other $44.0B distribution to Native American tribes and American territories. The remainder is to be allocated to states to be distributed to what are called non-entitlement units of local government (under 50,000), based on size of population. For the most part, half of these monies were distributedThe guidance creates different tiers of reporting and to recipients in May 2021. Most of the remainder will befrequency of reporting. Recipients with more than 250,000 distributed in May 2022. 1These funds must be spent by thepopulation have to submit an annual Recovery Plan end of 2026another lesson from the 2009 Recovery Act:Performance report which will provide the public and unnecessarily short spending deadlines can result in projectsTreasury information on the projects that recipients are that do not address longer term community needs. undertaking with program funding and how they are planning to ensure project outcomes are achieved in an Treasury Guidance on Uses and Reporting effective, efficient, and equitable manner. How can we ensure this large infusion of funds is used wisely and in the spirit of the law? In April 2021, the OfficeThese large recipients, as well as other recipients of awards of Recovery Programs was created and tasked with quicklyover $50,000, are required to submit quarterly project and designing the distribution, use, and accountability for thisexpenditure reports through the end of the program in 2026. program. By law, the initial funds had to be distributed withinTreasury created an electronic submission portal and 60 days after the law was signed. The first tranche of granttemplates to simplify reporting. The guidance encourages monies was distributed in May 2021 before official, finalreporting the amount of project funds allocated to evidence-program guidance had been developed. This caused greatbased interventions. Smaller recipients (less than $5 million) uncertainty among state and local recipientsthey feareddo not have to submit plans or quarterly reports, but must spending the funds on new initiatives and then see these fundssubmit annual reports on spending, including contracts or clawed back later when final guidance was issued and theygrants over $50,000, as well as descriptions of the types of find their initiatives were deemed as not being allowableprojects funded.costs. As a result, states and localities were initially slow to spend the funds. According to RouteFifty, an online magazine covering states and localities, some small localities are foregoing the aid. Treasury staff quickly scrambled to develop interim guidanceGenerally they just dont have the infrastructure to support before the funds were distributed in May 2021. When thethe reporting requirements required under the law, said final version took effect April 1, 2022, Treasury noted that this Emily Brock, director for the Government Finance Officers guidance provides state and local governments with increasedAssociation. These include communities of 500 or less where flexibility to pursue a wider range of uses, as well as greatermost of the work is done by community volunteers unfamiliar simplicity so governments can focus on responding to the crisiswith complex programs.in their communities and maximizing the impact of their funds.76 www.businessofgovernment.org The Business of Government'