A large component of the CARES Act is to support our state and local governments as they confront financial challenges due to increasing costs associated with COVID-19.  Additional expenses have been generated which are above and beyond the allotted budget amounts cited in local municipal budgets which are crafted to cover operating expenses every one or two years.  With the unexpected turn of recent events, many cities are not generating the revenues that were forecasted and need assistance from the federal government to cover unexpected costs of fighting the impact of the Coronavirus Disease 2019 (COVID-19).

  • How does it work?
    • The CARES Act stipulates that the $150 billion provided to the Coronavirus Relief Fund are transmitted to states and local governments according to their population as measured in the most recent census data.  Cities larger than 500,000 can apply directly to the Treasury Department, and smaller cities will apply for funds through the State of Texas.
  • How much money will the State of Texas receive?
    • It is estimated that Texas will receive $11.243 billion to serve the 28,995,881 Texans, which accounts for 8.1 percent of funds available to the 50 states which is $139 billion.  There are 327,533,774 people in the United States.
  • What can these funds be used for?
    • The funds can be used to support and strengthen municipalities that offer services specific to the COVID-19 response.  According to Section 5001(d) of the CARES Act funds may be used by state and local governments to make payments for programs that are necessary expenditures incurred due to the public health emergency with respect to COVID-19.