Federal COVID-19 Relief Assistance Payments For Local Communities

News Update poster

Coronavirus Local Fiscal Recovery Fund For Cities With Populations Under 50k

AUSTIN – Governor Greg Abbott has announced additional federal coronavirus relief assistance payments from the American Rescue Plan Act (ARPA) will begin this week for populations under 50,000.


Under ARPA, the Coronavirus Local Fiscal Recovery Fund (CLFRF) provides emergency funding for eligible localities classified as non-entitlement units of local government (NEUs) to support their response efforts, including medical supplies and hospital staffing. NEUs are cities, villages, towns, and townships serving populations of less than 50,000 and will receive funding distributed by the Texas Division of Emergency Management (TDEM).


“The success and continued growth of Texas starts on Main Street in our local communities,” said Governor Abbott. “I strongly encourage the remaining local officials of NEUs across the state to apply for this additional funding through TDEM so that the millions of Texans living in smaller communities are not forgotten as they continue their COVID recovery efforts.”


“The Texas economy is the 9th largest in the world and much of our strength comes from our small towns and rural communities,” said Lt. Governor Dan Patrick. “It is vital that our local governments take advantage of the funds that Congress has appropriated so our state emerges from the COVID-19 pandemic even stronger than before.”


“NEUs can be a critical lifeline to communities across Texas, and local governments can benefit from these essential resources,” said Speaker Dade Phelan. “Every community eligible should apply for these funds to further the revitalization of our state.”


“As Texans continue to recover from the economic challenges of the pandemic, we must support our small towns,” Senator Jane Nelson said. “These dollars will help ensure communities across Texas have every opportunity to succeed in their recovery.”


“It’s important that NEUs apply for these federal funds to aid in their economic recovery from unexpected covid expenses,” said Chairman Greg Bonnen, MD. “Texas small towns epitomize our state’s spirit of resilience and determination, and assisting them will enable the entire state to more quickly rebound from the pandemic.”


Last month, the State of Texas began the process of contacting and collecting the required information from the nearly 1,200 local governments before certifying and applying to receive the federal funds into the state treasury. Per federal law, states are required to distribute funding to all eligible NEUs (non-entitlement units of government) within 30 days of receiving the funds into the state treasury. Local governments can contact TDEM to begin this application process.


For more information or to apply for CLFRF, please visit https://tdem.texas.gov/clfrf/