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NCSL Urges Against Diverting Covid-19 Funds for Other Purposes

For Immediate Release

April 19, 2023

Washington, D.C. – The National Conference of State Legislatures (NCSL) released the following statement concerning the availability of COVID-19 funds and the potential to transfer unobligated state and local funding before their expiration.

“NCSL supports smart, efficient use of funds provided for pandemic relief, such as the Coronavirus State and Local Fiscal Recovery Fund (SLFRF). Congress has only recently allowed increased flexibility for SLFRF as part of the Consolidated Appropriations Act, 2023.

The Department of the Treasury is still working on providing interim rules governing how these funds may be spent under the increased flexibility. Accordingly, states have not yet acted and are reluctant to apply for funding until there is clarity.

The Consolidated Appropriations Act, 2023 also provided a much-needed extension, moving the deadline of when to expend SLFRF funds from Dec. 31, 2024 to Sept. 30, 2026. The long-term challenges presented by the pandemic are complex and states need sufficient time to develop long-term solutions.

NCSL urges against the transfer of unobligated funds before states can use this increased flexibility and put forward smartly developed proposals, especially during this time of economic uncertainty.”

NCSL is a bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.

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