Anna Horevay Quoted on Stimulus Payments for State and Local Governments

March 29, 2021

McGuireWoods associate Anna Horevay was quoted in a March 19, 2021, Route Fifty article titled “When State and Local Governments Can Expect to Receive Stimulus Funds.” Route Fifty is a digital news publication focusing on state, county and municipal government.

The article noted it could be weeks before state and local jurisdictions begin receiving federal government payments as part of a $350 billion direct aid program included in the coronavirus relief bill passed earlier this month. While the Treasury Department has 60 days from the law’s enactment to release the first tranche of funding to cities and counties, the process for states could take longer. Unlike cities and counties, which receive funding without any further action, states must submit a certification before the Treasury Department will release money.

States are currently waiting on the Treasury Department to release guidance on use money and the form of the required certificate. “The real concern is when the guidance from the Treasury Department will come out,” Horevay said. “That is a total unknown.” She said the department took weeks to issue guidance on funds released under the CARES Act passed last year and created confusion when the guidance kept changing. 

She noted, however, that the certification process under the CARES Act involved a simple, one-page document and suggested that a similar approach under the new legislation would help simplify the process. “Hopefully the certification is short and doesn’t take a lot of effort from the states’ side to sign it and then they can start the 60-day clock ticking,” she said.