For Local Municipalities

Michigan Municipal League (MML) has comprehensive resources and FAQs, as well as online webinars for municipal officials and local elected leaders. PLEASE NOTE: If you represent a local municipality, the Governor’s office has requested that you filter all of your questions through MML.

The CARES Act includes $150 billion designated for state and local efforts to combat the Coronavirus pandemic. The bill provides for this state aid under a new Coronavirus Relief Fund in the Treasury Department and is allocated by population. This is in addition to roughly $274 billion in funding for specific elements of state and local governments’ responses to the pandemic and economic crisis, and supplemental funding for joint state-federal programs like unemployment compensation and Medicaid. 

Frequently Asked Questions: 

Who is eligible to receive these funds? 

The State of Michigan and as well as any county, municipality, town, township, village, parish, borough, or other unit of general government below the State level with a population that exceeds 500,000. That means the City of Detroit, as well as Wayne, Oakland, Macomb and Kent Counties are eligible.

How is the fund distributed? 

The $150 billion in the Coronavirus Relief Fund is mostly allocated by population, but with $3 billion reserved for U.S. territories and the District of Columbia and $8 billion set aside for tribal governments, along with a guarantee that each state receives at least $1.25 billion even if its population share would otherwise indicate a lesser amount. Michigan is eligible for $3.87 billion in this fund. 

What’s the relationship between city funds and state funds? 

Any aid given to a local municipality is subtracted from the amount otherwise available to their state’s government. This too is apportioned by population, but localities may only receive 45 percent of the amount associated with their population.

What expenditures are eligible? 

To be eligible for federal funding, state and local expenditures must meet three conditions. First, they must be necessary expenditures incurred due to the COVID-19 public health emergency. Second, they must not be accounted for in the state or locality most recently approved budget (as of the time of the bill is enacted). And third, the expense must be incurred between March 1 and December 30, 2020. 

How are these funds accessed? 

The U.S. Treasury must allocate funds to states within 30 days and localities may apply directly to the Treasury for their relative share. More information on where to apply will be shared when we receive it. 

What is the Exchange Stabilization Fund?

The CARES Act provides an additional $500 billion to Treasury’s Exchange Stabilization Fund (ESF) to provide loans, loan guarantees, and other investments. The lion’s share is set aside as $454 billion for loans, loan guarantees, and investments and can be accessed by states and municipalities as well as mid-sized businesses. 

How can I access this money? 

The Treasury will be purchasing loans from normal financial institutions and guaranteeing them through the ESF. Therefore, if you are interested in receiving a loan from the ESF, cities and local municipalities are encouraged to contact their lender, whether it is a community bank, credit union, or other financial institution.