News Flash

Federal Government

Posted on: May 5, 2020

U.S. Treasury Guidance Allows CARES Flexibility

Yesterday, the U.S. Treasury updated its Frequently Asked Questions CARES Act guidance. This revision will provide CARES Act recipient States (including New Jersey), and recipient units of local government (including New Jersey’s nine most populous counties) with greater flexibility in the use of those funds. 

In addition to giving State government greater flexibility for its own purposes, all New Jersey municipalities should be aware of this advice regarding fund usage.

May a State receiving a payment transfer funds to a local government? 

Yes, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act. Such funds would be subject to recoupment by the Treasury Department if they have not been used in a manner consistent with section 601(d) of the Social Security Act.

Municipalities in the counties of Bergen, Middlesex, Essex, Hudson, Monmouth, Ocean, Union, Camden, and Passaic, should consider this.

May a unit of local government receiving a Fund payment transfer funds to another unit of government? 

Yes. For example, a county may transfer funds to a city, town, or school district within the county and a county or city may transfer funds to its State, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, a transfer from a county to a constituent city would not be permissible if the funds were intended to be used simply to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify as an eligible expenditure.’’

The same restrictions that apply to original recipients would apply to secondary recipients.

Contact: Jon Moran, Senior Legislative Analyst, jmoran@njlm.org, 609-695-3481 x121.


Facebook Twitter Email

Other News in Federal Government

Local Aid Crucial for Economic Recovery

Posted on: August 25, 2020

Time is Running Out for the 2020 Census

Posted on: August 14, 2020

Call for Federal Lifeline

Posted on: May 22, 2020

HEROES Act Includes Hometown Help

Posted on: May 15, 2020

Week of May 4 COVID-19 Update

Posted on: May 8, 2020

Possible Help for Seasonal Businesses

Posted on: April 30, 2020

New Federal Help for Local Businesses

Posted on: April 29, 2020

Congress Considers Local Aid Bills

Posted on: April 17, 2020

CARES Act Information Update

Posted on: April 3, 2020

CARES Bill Follow-up

Posted on: March 30, 2020

Federal CARES Act Analysis Continues

Posted on: March 27, 2020

Delays on Gateway Continue

Posted on: March 10, 2020

FEMA to Delay New Flood Insurance Rates

Posted on: November 8, 2019