Illinois to Receive First Installment Of Billions In Coronavirus State and Local Fiscal Recovery Funds Championed By Congressman Krishnamoorthi
WASHINGTON — The U.S. Department of Treasury has announced it will begin distribution of the first round of Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, which will provide more than $14 billion dollars in emergency funding for Illinois’ state, county, and local governments. Congressman Raja Krishnamoorthi (IL-08), who Chairs the House Oversight Subcommittee on Economic and Consumer Policy, spearheaded efforts to include the funding in the coronavirus relief legislation and to secure its passage through the Oversight Committee’s markup of the legislation.
“As Chairman of the Oversight Subcommittee on Economic and Consumer Policy, I fought to ensure that state and local aid were included in the American Rescue Plan and I’m thrilled to see that this critical funding will soon be arriving in our state,” said Congressman Krishnamoorthi. “Governments across our state will receive a total of more than $14 billion dollars in aid through this and subsequent payment installments and this crucial support will help avoid tax hikes and cuts to essential services as we continue to defeat this pandemic and rebuild our economy. In the coming weeks and months, my office will work closely with state and local officials to put this funding to good use for all the people of Illinois.”
The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hardest-hit by the crisis. Within the categories of eligible uses listed, recipients have broad flexibility to decide how best to use this funding to meet the needs of their communities. In addition to allowing for flexible spending up to the level of their revenue loss, recipients can use funds to:
- 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;
- 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.