The ARP creates the State and Local Fiscal Recovery Fund (FRF). FRF is intended to help states, counties, cities, and tribal governments cover increased expenditures, replenish lost revenue, and mitigate economic harm from the COVID-19 pandemic3.
The CARES Act included a funding source that is reasonably equivalent to FRF called the “Coronavirus Relief Fund (CRF).” CRF funding flowed to Northeast Ohio in two ways: 1) a direct allocation to the state of Ohio, and 2) direct allocations to certain Ohio counties and its largest cities. FRF funds were similarly allocated both to the state of Ohio and to counties and large cities4.
In addition to being the largest potential source of funding, FRF is also the most flexible. The statutory language is broad. The funding may be used:
“to respond to the public health emergency with respect to the Corona Virus Disease 2019 (COVID-19) or its negative economic impacts, including assistance to households, small businesses, and nonprofits. . .5”
Guidance on use of funds:
The U.S. Treasury has not yet issued guidance on FRF6. We can, however, look to the CARES Act, the CRSSA, and their implementation for guidance because the CRF is such a reasonable equivalent to FRF. CRF could be used for:
“necessary expenditures incurred due to the public health emergency with respect to COVID-19.”7
This language is notably narrower than the language in the ARP. In the ARP, the use of the funding is expanded to allow for expenditures not just incurred due to the public health emergency, but also expenditures used to respond to the public health emergency and its negative impacts. For this reason, it is generally understood that FRF is more flexible than its predecessor.
Importantly, FRF has a much longer timeline than its processors.8 With nearly three full years to spend FRF funds, an investment in Legal Aid will provide more time to address the fallout from the pandemic. And, this elongated timeline will allow Legal Aid to scale up services in a meaningful and sustainable way, ensuring transformational impact on the community.
Despite the shorter timeframe and narrower list of allowable uses, CRF was used in numerous states to fund legal services. We expect to see the same with FRF.
Examples from other communities:
Already, local cities use some federal funds to support Legal Aid through grants. The Legal Aid Society of Cleveland is proud to already work with the cities of Cleveland, Elyria, Euclid, Lorain. We look forward to expanding our work in these communities, and adding new city and county partners to our list of collaborators.
While FRF is too new to already be allocated and in use anywhere yet, the narrower CRF dollars have been utilized for legal services in many other communities nationwide. Notable examples include:
- Pennsylvania allocated $8 million in CRF funding, via the Department of Human Services, to be used broadly for legal services in response to pandemic.9
- Texas allocated $4.2 million in CRF funding, as part of its Texas Eviction Diversion Program.10 This allocation was made through the Texas Supreme Court to help the state’s legal aid providers and pro bono lawyers provide legal services through the pandemic.11
After consultation with legislative budget leaders, Washington’s State Office of Financial Management allocated $2.3 million in CRF funding for a comprehensive, emergency civil legal aid program.12
As part of a larger, statewide rental assistance program funded with CRF, Michigan allocated $4 million in CRF funding to legal aid organizations to provide legal services.13
The Massachusetts Department of Housing and Community Development funded the COVID Eviction Legal Help Project with support from $8.6 million in CRF funding.14 The program officially started on October 16, 2020, when the Department of Housing and Community Development reached out to the Massachusetts Legal Assistance Corporation to help scale up a coordinated statewide legal services delivery system.15 The Eviction Legal Help Project is part of Governor Charlie Baker’s “Eviction Diversion Initiative,” designed in response to the expiration of the state’s eviction moratorium.16
Examples of other states that have used CRF funding for legal services include Colorado, Nevada, New Hampshire, and Vermont. Numerous cities have also utilized CRF funds for legal aid.