May 10 2021
Washington—Senator Dianne Feinstein (D-Calif.) today announced that California will receive nearly $43 billion in coronavirus emergency funding for state and local governments under the American Rescue Plan Act.
“The COVID-19 pandemic created a large increase in public health spending and forced many jurisdictions in California to dramatically reduce or eliminate services and lay off essential workers as revenues declined. These funds will help prevent additional cuts and accelerate the recovery.
“This pandemic was more than a public health emergency, it affected the finances of families, businesses and governments across the country. It’s important that we don’t lose sight of the fact that this crisis touched so many other aspects of our lives.
“That is why the Biden administration thankfully provided communities broad flexibility to use these funds. They can be used to support public health efforts, provide aid to families and businesses, or invest in vital infrastructure.
“As vaccination rates continue to increase and caseloads decrease, these funds will play a critical role in helping California reopen and allowing life to return to normal.”
Coronavirus State and Local Fiscal Recovery Funds:
Under the Coronavirus State and Local Fiscal Recovery program, California will receive nearly $43 billion in funding, including $27 billion for the state government, $7.7 billion for California counties and $8.2 billion for California cities.
According to the Treasury Department, the funds can be used for:
- Support public health expenditures, by – among other uses – funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, mental health and substance misuse treatment and certain public health and safety personnel responding to the crisis;
- Address negative economic impacts caused by the public health emergency, including by rehiring public sector workers, providing aid to households facing food, housing or other financial insecurity, offering small business assistance, and extending support for industries hardest hit by the crisis.
- Aid the communities and populations hardest hit by the crisis, supporting an equitable recovery by addressing not only the immediate harms of the pandemic, but its exacerbation of longstanding public health, economic and educational disparities.
- Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service during the pandemic; and,
- Invest in water, sewer, and broadband infrastructure, improving access to clean drinking water, supporting vital wastewater and stormwater infrastructure, and expanding access to broadband internet.