How have states and localities obligated and spent their $350 billion in Coronavirus State and Local Fiscal Recovery Funds (SLFRF) available under the American Rescue Plan Act of 2021?

The Government Accountability Office (GAO) has just come out with a new report, which provides the latest data available as of March 31, 2024, and it is illuminating. As of that date, states and localities reported that they had allocated 84 percent ($163.7 billion) of the dollars they received and had spent 60 percent ($117.3 billion).

The breakdown of recipients of the $350 million allocated include:

• States and Washington D.C. - $195.3 billion

• Counties - $61.1 billion

• Metropolitan cities - $46.6 billion

• Tribal governments - $20.0 billion

• Non-governmental units of local governments - $19.5 billion

• Territories - $4.6 billion

Only 13 states had obligated less than three quarters of the funds they are receiving, with only three states having obligated less than 60 percent: New York, New Jersey and Alabama.

At the opposite end of the spectrum, 15 states had obligated at least 90 percent of their SLFRF money: Arizona, California, Georgia, Illinois, Indiana, Maryland.   Minnesota, Missouri, Nebraska, Nevada, North Carolina, North Dakota, Pennsylvania, Texas and Washington.  

According to a release about the report, “States and localities reported spending the largest amount of their awards to replace revenue lost due to the pandemic. Specifically, 45 percent ($53.2 billion) of states' reported spending and 68 percent ($51.5 billion) of localities' reported spending was used for this purpose.”

In fact, according to the GAO, “20 states reported spending 50 percent or more of the SLFRF awards they received on addressing the negative economic impacts of the pandemic. Minnesota (83 percent), Maine (80 percent), and Ohio (78 percent) reported the largest shares of spending for this purpose.”

For example, “the District of Columbia reported spending $37.9 million to help hotels mitigate the effects of the pandemic on hotel stays.” 

Similarly, “Nevada reported spending $747,323 to help maintain staffing levels and continue required services in the state's court system, due to a budget shortfall during the pandemic. Erie County, Pennsylvania, reported spending $2.7 million to support ongoing operations of a county-owned nursing facility.”

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