Treasury Department answers McSally’s request for more CARES Act funding flexibility

U.S. Sen. Martha McSally (R-AZ) recently helped secure additional flexibility for state, local and tribal governments to allocate Coronavirus Relief Funds (CRF) authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. 

“States, local and tribal governments know their area’s needs best, and I am glad to have partnered with the Treasury Department to provide our communities in Arizona and nationwide with the ability to look at their budget, identify any funding gaps, and give them the authority to allocate as needed,” Sen. McSally said on Sept. 3.

In an Aug. 20 letter sent to U.S. Treasury Secretary Steven Mnuchin, Sen. McSally and several of her colleagues asked that the department explore additional ways to allow CRF to cover the necessary and basic services provided by state, local and tribal governments. 

In Mnuchin’s Sept. 2 reply letter, the secretary wrote that the department has updated guidance and frequently asked questions to clarify five specific points for the governments.

For example, CRF may be used to prevent layoffs of public health and public safety workers essential to assist with the government’s response to the public health emergency, according to Mnuchin’s letter, which noted that public safety officers include police, sheriffs, deputy sheriffs, firefighters, emergency medical responders, correctional and detention officers, and dispatchers and supervisory personnel.

CRF also may be used to pay for personal protective equipment and other items necessary to satisfy federal guidelines for reopening schools, “and to provide a presumption that up to $500 per student may be allocated for this purpose,” according to the secretary’s letter.

Additionally, CRF allocations may be used for upgrades to public health infrastructure, such as providing access to running water for individuals and families, according to the secretary’s letter sent to Sen. McSally.

“When I spoke to Arizona’s state, local and tribal leaders regarding the funding we allocated in the CARES Act, they reiterated that they need more flexibility to meet their current demands,” said Sen. McSally last week. “I made it my mission to ensure that we provided more flexibility to help keep these communities afloat.”