On October 20, the Senate passed the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act, legislation spearheaded by Senators John Cornyn (R-TX) and Alex Padilla (D-CA) making multiple types of infrastructure investments and disaster relief eligible for unspent COVID-19 relief dollars. It also extends the deadline to use relief funding if earmarked for eligible infrastructure projects. The bill would allow for COVID-19 relief funding to go toward projects eligible to receive funding from federal programs like TIFIA, Urbanized Area Formula Grants, Community Development Block Grants, and more.
The bill would set limits on the amount of relief funding eligible to be spent on these new purposes. Funding allocation will be restricted to the greater of $10 million or 30 percent of the available monies. This cap will not extend to funds spent on water, wastewater or broadband. The bill will now have to pass the House of Representatives before moving to the President’s desk for a signature or veto. For more information about the bill, see the following links:
GFOA’s Federal Liaison Center will continue to monitor this legislation as it moves through Congress.