1. Short title
This Act may be cited as the “Coronavirus Relief Fund Flexibility for State and Local Government Act”.
Coronavirus Relief Fund Flexibility for State and Local Government Act
A BILL
To amend the CARES Act to provide flexibility in use of funds by States, Indian Tribes, and municipalities.
2. Flexibility in use of funds by States, Indian Tribes, and municipalities
In general— The CARES Act (Public Law 116–136) is amended by adding after section 23007 the following:
“23007A
“(a) Except as provided in subsection (b), notwithstanding any other provision of this Act or an amendment made by this Act, funds made available under this Act, or an amendment made by this Act, to a State or municipality, as those terms are defined in section 4002, may be used by the State or municipality for operating expenses not related to the coronavirus disease 2019 (COVID–19), to remain available until expended.
“(b) No State may use funds made available under this Act or an amendment made by this Act for any State pension fund.”
Applicability— The amendment made by subsection (a) shall apply to funds made available under the CARES Act (Public Law 116–136) on or after the date of enactment of that Act.
Elimination of use of funds restrictions on Coronavirus Relief Fund payments— Effective as if included in the enactment of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136), section 601 of the Social Security Act, as added by section 5001(a) of the Coronavirus Aid, Relief, and Economic Security Act, is amended—
by striking subsection (d) and inserting the following:
“(d) Use and availability of funds—Funds paid to a State, Tribal government, and unit of local government under this section may be used for operating expenses not related to the Coronavirus Disease 2019 (COVID–19) and shall remain available until expended.”
in subsection (e), by striking “that the local government’s proposed uses of the funds are consistent with subsection (d)”; and
in subsection (f)—
by striking paragraph (2);
by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and
in paragraph (2) (as redesignated by subparagraph (B)), by striking “and recoupment”.