State Fiscal Recovery Fund

California will receive over $43 billion in combined recovery funds from the American Rescue Plan Act of 2021 to cover costs incurred between March 3, 2021 and December 31, 2024, to mitigate the impacts of the COVID-19 Pandemic, including $27 billion in state fiscal recovery funds. The Act specifies that funds may be used to respond to the public health emergency or its negative economic impacts, replace lost revenue, and to make necessary investments in water, sewer, or broadband infrastructure. The framework for the $27 billion Coronavirus State Fiscal Recovery Fund to help California build back a stronger, more equitable economy and address the disproportionate negative economic impacts of COVID-19 on low-wage sectors is summarized below. View a table of the full list of project allocations here:

  • Address Public Health Impacts ($0.7 billion) – Includes support for the state’s emergency response to COVID-19, including vaccine incentives. These funds will also help address emotional and behavioral health concerns exacerbated by the COVID-19 Pandemic on California’s adults.
  • Address Negative Economic Impacts ($11.3 billion) – Includes funds to address various negative economic impacts of COVID-19 on households, individuals, businesses, and industry.
  • Broadband Investments ($3.8 billion) – Promotes access to, and affordability of, broadband by funding middle mile and last mile infrastructure projects, which are critical to the state’s economy, education, and basic health and well-being, and will serve as a key component of the state’s long-term equitable recovery, vitality, and resilience.
  • Replace Lost State Revenue ($11.2 billion) – Replaces state revenue lost due to the COVID-19 public health emergency. These funds will support a variety of government services.

Project and Expenditure Report

Beginning January 31, 2022, pursuant to federal requirements, Project and Expenditure Reports for the State Fiscal Recovery Fund are due to the U.S. Department of the Treasury on a quarterly basis. Expenditures are reported on a cash basis, which includes reimbursements to subrecipients as well as advance payments for goods or services that have not yet been invoiced. The following chart provides the Budget Act allocation, amount awarded to subrecipients, and expenditures for each expenditure category.

Coronavirus State Fiscal Recovery Fund
(Dollars in Thousands)

Expenditure Category Revised 2021-22 1/ Amount Awarded Expenditures 2/
Public Health $738,837 $737,625 $185,355
Negative Economic Impacts $11,317,913 $4,780,879 $3,054,859
Broadband $3,772,397 $1,550,795 $4,859
Revenue Replacement $11,158,313 $11,158,313 $11,158,313
Administrative and Other $29,557 $1,116 $1,116
Total $27,017,017 $18,228,728 $14,404,503

Note:
1/ This column incorporates an early action shift of $1.9 billion in programs funded by the State Fiscal Recovery Fund to either the General Fund or other state funds to maximize flexibility and streamline federal reporting activities in the 2021 Budget Act.
2/ Expenditures include cash advance payments made to subrecipients for goods or services that have not yet been invoiced.

Eligible Cost Timeframe

The American Rescue Plan Act specifies eligible costs incurred between March 3, 2021 and December 31, 2024. The California 2021-22 Budget Act, as amended by Chapter 2 of the Statutes of 2022, included language to allow time to reallocate unspent funds and provide some additional flexibility on timing. Control Section 11.96 requires that funds be obligated or spent by June 30, 2024, unless there is a reasonable plan to fully obligate or spend funds by December 31, 2024. Funds must be fully obligated by December 31, 2024, with all contracts, deliverables, and agreements in place by this date. All funds must be spent (fully liquidated) by December 31, 2026.

  • A copy of Control Section 11.96 is included below.
  • For additional information on Control Section 11.96, please see slides 5-6 of the State Fiscal Recovery Fund Webinar (link below).
  • Control Section 11.96

Note:  Competitive bidding (or obtaining more than one estimate) is required and contract provisions must be consistent with the basic timeline/framework detailed in Control Section 11.96.

State Fiscal Recovery Fund Webinar – A copy of the slides and videos from training provided on July 15, 2021. This presentation summarizes requirements for state agencies regarding data collection and reporting, management and oversight, and key deadlines.

Reporting Requirements and Deadlines

Interim Project and Expenditure Recovery Plan
Contents Initial overview of status & uses of funding
  • Types of projects funded
  • Financial Data
  • Information on grants, contracts, and subawards over $50,000
  • Approach and objectives
  • Descriptions of funded projects
  • Performance and evidence information
  • Promoting equity
Frequency & Submission Date
  • One-time
  • By August 31, 2021
  • Covers date of award through July 31, 2021
  • Quarterly
  • By January 31, 2022 and 30 days after the end of each quarter thereafter
  • Annually
  • By August 31, 2021 (covering award through July 31, 2021 and annually thereafter)
Quarterly Project and Expenditure Reporting Deadlines – Reporting is required to be submitted quarterly through the March 31, 2027 reporting period. The table below provides the anticipated deadlines through the March 31, 2023 reporting period.
Reporting Period Departments Due to Finance State Due to U.S. Treasury
April 1 – June 30, 2022 July 8, 2022 July 31, 2022
July 1 – September 30, 2022 October 7, 2022 October 31, 2022
October 1 – December 31, 2022 January 6, 2023 January 31, 2023
January 1 – March 31, 2023 April 7, 2023 April 30, 2023
Expenditure Categories – The U.S. Department of the Treasury has identified 66 different expenditure categories to track how funding is used. Some categories will require additional programmatic data. Departments need to determine which categories their projects fall under consistent with the enacted Budget (coordinate with your Finance Budget Analyst):

  1. Address Public Health Impacts
  2. Address Economic Impacts
  3. Services to Disproportionally Impacted Communities
  4. Infrastructure (Broadband)
  5. Revenue Replacement

Descriptions should also include information about how these funds are integrated with other programs funded in the American Rescue Plan Act, such as Emergency Rental Assistance, Housing Assistance, etc.

Contact your Finance Budget Analyst for specific program-related questions and how to assign your program/project within the 66 Expenditure Categories.

For more information, please see the State Fiscal Recovery Fund Webinar and the U.S. Department of Treasury resources found on this page.

Visit the DOF’s State Fiscal Recovery Fund Reporting Portal informational page for instructions on how to access the portal.

Additional Information

Single Audit – California is considered as a single non-federal entity and is automatically subject to an annual audit. For more detailed information regarding the Single Audit, including the roles and responsibilities of all sub-recipients, please refer to the State and Local Fiscal Recovery Fund webinar and to the California State Auditor.

Treasury and Other Federal Resources

State agencies and departments are responsible for reviewing, understanding, and staying up to date on all federal guidance and requirements which apply to their federal funds. The U.S. Treasury Coronavirus State and Local Fiscal Recovery Funds website contains several helpful documents, including the following:

Resources and Contacts