Federal Funding Coming Your Way

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Coronavirus Local Fiscal Recovery Fund Distribution 

For metropolitan cities that are entitlement communities under CDBG, including Annapolis, Baltimore, Bowie, Cumberland, Frederick, Gaithersburg, Hagerstown, and Salisbury, the U.S. Treasury will issue two tranches of funds, with 50 percent of allocation available within 60 days and the second tranche available one year after the first tranche is paid. Funds are distributed using a modified CDBG formula based on population and concentration of poverty.  

Maryland’s remaining 149 municipalities will have  funds distributed on a population basis. The Treasury has 60 days to award funding for the State to distribute to “nonentitlement” communities as a pass-through. Upon receipt, the State must distribute funds within 30 days. All municipality funds are issued in two tranches, with 50 percent of allocation available within 60 days and the second tranche available one year after the first tranche is paid.

A complete list of funding distribution for each of Maryland’s municipalities can be found on our COVID Relief Funding Page.  

Allowable uses of Coronavirus State and Local Fiscal Recovery Funds

  • To respond to or mitigate the COVID-19 health emergency or its negative economic impacts, including assistance to households, small businesses, nonprofits, and aid for tourism, travel, and hospitality;
  • To provide essential workers with premium pay;
  • To cover revenue loss incurred as a result of the COVID-19 emergency; or
  • To make necessary investments in water, sewer, or broadband infrastructure

Prohibited uses of Coronavirus State and Local Fiscal Recovery Funds

  • Funds may not be used to support any pension fund or offset a tax cut

MML will continue to provide updates related to ARPA funding distribution and usage requirements. Updates will appear on our COVID Relief Funding Page as well as through standard MML communication vehicles like the eBulletin

Source: https://bit.ly/3vAbkXu

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