Assessing the Targeting of the Federal Coronavirus Relief Fund

In March and April 2020, Congress passed four stimulus bills to address the COVID-19 pandemic’s impact on the public health system and the economy. As Congress debates additional relief measures, it is worth reviewing the targeting of the initial funding in order to inform new policy to counter the virus and its economic effects. In the third stimulus bill, the Coronavirus Aid, Relief and Economic Security (CARES) Act, Congress appropriated $150 billion to the Coronavirus Relief Fund (CRF) to provide direct funding to state and local governments. The use of CRF funds is restricted to unbudgeted financial needs associated with the COVID-19 emergency during the period from March 1, 2020, to December 30, 2020. Under current law, the funds cannot be used to offset revenue losses.