Are state and local governments are eligible for relief funds?
Yes, Eighty percent of funding provided by Division B, the appropriations section, goes out through existing grants to support state, local, tribal, and community grantees. Funding is provided to numerous programs within the Agriculture; Labor-Health-Education; Interior; Homeland Security; Commerce-Justice-Science; and Transportation and Housing subcommittees. For additional questions on Division B, please contact the Appropriations Committee.

Some programs included within the appropriations division are:

• Community Development Block Grants – $5 billion
• Homelessness Grants – $4 billion
• Transit Agencies – $25 billion
• Airports – $10 billion
• Assistance to Tribal Communities (Indian Health Service, Bureaus of Indian Education/Affairs, and Food Distribution) – $8 billion
• Disaster Relief Fund – $45 billion
• Emergency Food and Shelter Grants – $200 million
• First Responder (FIRE) Grants – $100 million
• Emergency Management Program Grants – $100 million
• Byrne Justice Assistance Grants – $850 million
• Economic Assistance Development Grants – $1.5 billion
• Manufacturing Extension Partnership Grants – $50 million
• Child nutrition – $8.8 billion
• Supplemental Nutrition Assistance Program – $15.8 billion
• Community Services Block Grant – $1 billion
• Low Income Home Energy Assistance Program – $900 million
• Child Care and Development Block Grant – $3.5 billion
• CDC Funding for State Public Health Departments – $1.5 billion

Are the DOD and VA eligible for relief funds?
The bill provides a total of $10.5 billion for DOD functions and programs, including $1 billion to expand availability of necessary supplies through the Defense Production Act, $3.4 billion for defense health care programs, and $1.5 billion to support the deployment of the National Guard.

The bill provides a total of $19.6 billion for the Department of Veterans Affairs and veterans programs. In addition, if VA is called upon by the federal emergency coordination council to care for non-Veterans, it will be reimbursed through the Public Health and Social Security Emergency Fund. Funding provided in the bill for the PHSSEF assumes VA will be reimbursed approximately $4 billion.

How will funds be distributed to hospitals, including rural hospitals?
The bill appropriates $100 billion to hospitals and other health care providers. We believe HHS will hire a third-party claims processor, similar to a Medicare Administrative Contractor. This processer will use criteria, outlined by HHS, to determine (1) eligibility of provider, (2) justifiability of amount, (3) amount of claim, (4) payment, and any other information determined by HHS. We also assume there will be an administrative appeals process. We do not know specifics yet as this is a new program. The bill provides wide latitude to the Administration to determine program parameters.

Additionally, the bill provides money for providers through Medicare:

• Allows for accelerated Medicare payments. This will help hospitals, especially those facilities in rural and frontier areas, get the reliable and stable cash flow they need to help them maintain an adequate workforce, buy essential supplies, create additional infrastructure, and keep their doors open to care for patients.
• Creates a 20 percent add on payment for inpatient treatment
• Delays the sequester until the end of this calendar year, which gives providers both money and certainty

Will nursing homes be able to access the same account as hospitals?
Nursing homes may be eligible, but that remains an open issue. Significant parameters will need to be issued by HHS on the process, information, and eligibility.

Why is there a $25 million appropriation for “Congressional Salary and Expenses” in the bill?
$25 million is provided to the Chief Administrative Officer, which is appropriated under the Salaries and Expenses account for the House of Representatives. Before funds can be spent, a spend plan is to be provided to and approved by the Committee on Appropriations. These funds are intended for computer purchases for teleworking, technology for video town halls, equipment for computer imaging, expansion of IT Customer support, and emergency expenses to support the Sergeant at Arms. These funds are not intended to be used to increase salaries of Members or staff.

How will the $150 billion Coronavirus Relief Fund for state and local governments be allocated?
Coronavirus Relief Fund (Sec. 5001) – A program created under the Department of the Treasury to provide funding to States, Tribes, and localities to offset lost revenue as a result of the coronavirus public health emergency. The bill provides an appropriation of $150 billion to be distributed by a formula based on population. Eligible local governments may apply directly to the Treasury for funding and amounts paid to a state will be reduced accordingly.

Who is eligible to apply and receive funding?
States, eligible local government, Tribal governments, DC, and the territories.

How is funding distributed?

• Funding is paid based on a state share of the total population, subtracting any amounts paid to local governments.
• No state can receive less than $1.25 billion.
• $3 billion is reserved for the District of Columbia, Puerto Rico, Virgin Islands, Guam, Northern Mariana Islands, and American Samoa. The amount for each is based on population.
• $8 billion is reserved for Tribal governments after consultation.
• What is the timing for distributing funds to states?
• Funds must be paid within 30 days of enactment.

How is funding allocated to states?
State receive an amount equal to their relative population, deducting any amount that may have been paid to units of local government within the state who applied for funding independent of the state.

What criteria are used to determine if local governments can apply?

• A local government means any county, municipality, town, or other unit of general government with a population greater than 500,000.
• Smaller units of local government will need to work with their states to access funding.
• How much can local governments receive if they apply directly?
• In no event will the total amount allocated directly to local units of government exceed 45% of the state’s allocation.
• A local government may receive 45 percent of the amount provided to the state times its relative population to the state
  Ex:      Town Population X 45%*(total amount for state)
  State Population

How is population determined?
The most recent year for which data are available from the Bureau of the Census.

What can funds be used for?

• Funds may only be used to cover the costs associated with necessary expenses incurred as a result of the coronavirus diseases 2019 public health emergency, not accounted for in the most recently approved state budget, for calendar year 2020. The fungibility of certain aspects of public budgeting and the general sorts of revenue shortfalls that are expected in the current economic climate makes it unclear how restrictive those limitations will be in practice.
• Covered by protections and restrictions that apply to annual LHHS appropriations, including Hyde.

What funding is provided to the Federal Emergency Management Agency (FEMA) to support state and local response efforts?
The CARES Act infuses $45 billion into FEMA’s Disaster Relief Fund (DRF), which will be added to the existing amounts in the DRF (approximately $40 billion). This funding will help response efforts in states with approved major disaster declarations. The bill also includes $100 million for FEMA’s Emergency Management Performance Grants (EMPG), which support state and local emergency management capacity; $100 million for Assistance to Firefighter Grants to support the acquisition of personal protective equipment; and $200 million for FEMA’s emergency food and shelter program.