Under the American Rescue Plan Act, $350 billion in Coronavirus State and Local Fiscal Recovery Funds (SLFRF) were allocated to state, local, tribal, and territorial governments to use in providing “assistance to households, small businesses, and nonprofits, or to aid impacted industries."
By December 31, 2024, every state, local government, territory, and Tribal government must commit to spending all their SLFRF resources – unobligated funds will be returned to the federal government. The Treasury Department rules and Quick Reference Guide make abundantly clear that governments will satisfy their duty to obligate SLFRF resources by entering into a contract or subaward agreement with charitable nonprofits by December 31, 2024.
Once obligated, the funds can be spent anytime before the end of 2026.
While the law mandates charitable nonprofit eligibility, it does not mean that nonprofits are entitled to a share of the funds – you must advocate for them. Many governments still have unobligated SLFRF resources and decisionmakers continue to debate how to allocate remaining funds before December 31, 2024. Use that opportunity to contact local leaders and make sure your nonprofit can access funding.
The National Council of Nonprofits offers resources that can be used to analyze the details of SLFRF, learn from nonprofit-specific questions, review data on funding and projects, and draft a proposal.
