The State and local governments can begin to access funding through the $2 trillion American Recovery Act. Of Maryland’s $6 billion share, the State will receive $3.7 billion, counties $1.1 billion, cities with more than 50,000 residents will split $619 million, and smaller cities and towns will share approximately $529 million. Guidance issued by the U.S. Treasury details how the funds can be used:
- Services and programs to contain and mitigate the spread of COVID-19;
- Addressing negative economic impacts caused by the public health emergency, including aid to families; recovery support for businesses and industries; and rehiring public sector staff;
- Addressing disproportionate public health and economic impacts of the crisis on the hardest-hit communities, including educational disparities;
- Increasing pay for essential workers, such as workers at nursing homes, child care centers and grocery stores;
- Rebuilding water and sewer infrastructure;
- Expanding broadband infrastructure; and
- Replacing lost public sector revenue, to provide government services to the extent of the reduction in revenue experienced due to the pandemic.
The guidance also outlines ineligible uses:
- Funding may not be used to directly or indirectly offset a reduction in net tax revenue due to a tax law change; and
- Funding may not be used to make a deposit to a pension fund.
A Maryland Matters article provides more detail and a funding breakdown by state, county and cities with more than 50,000 residents.
