Massachusetts to distribute $502M in coronavirus stimulus funds to towns and cities

Massachusetts officials are preparing to distribute about $500 million in coronavirus relief funding to towns and cities suffering the impacts of the pandemic.

Gov. Charlie Baker and Lt. Gov. Karyn Polito announced the plans on Thursday evening, along with guidelines to local municipalities seeking funds and looking to avoid dipping into reserves to cover deficits and unexpected costs related to the public health crisis.

The $502 million, in addition to funds allocated directly to Boston and Plymouth County, accounts for about 25% of what the state will receive through the Coronavirus Aid, Relief and Economic Security (CARES) Act’s Coronavirus Relief Fund for states and municipalities. The relief fund provided $150 billion for state and local governments, including $2.7 billion for Massachusetts.

The Baker-Polito administration on Thursday said the funds should be “sufficient to address incurred or expected eligible COVID-related expenses.”

Towns and cities’ executive officers can apply for funds through a web-based application form.

The cities of Springfield and Worcester are eligible for $13.6 million and $16.3 million, respectively.

For a list of eligible amounts for municipalities throughout the state, see the state’s guidelines here.

“To the extent that municipalities are unsure of their precise needs, or need money for cash flow purposes, they are free to request funds from the federal Coronavirus Relief Fund, with the understanding that unspent amounts will need to be returned to the Commonwealth,” according to the the guidelines released by the state Thursday. “While this approach may be a little complicated due to possible multiple funding sources for similar expenses, providing municipalities with funding now eliminates or reduces FY20 deficits and helps with cash flow issues.”

The funds must cover necessary expenditures incurred due to the outbreak between March 1, 2020 and Dec. 30, 2020. The funds may not be used to substitute lost revenue and may not supplant state or municipal spending or funds already budgeted before the CARES Act was signed by President Donald Trump on March 27, according to the guidelines.

Municipalities will have another opportunity to seek funding to cover eligible COVID-19 costs incurred during fiscal year 2021.

The state said potential expenditures could include staffing, overtime, quarantine and isolation costs for first responders; temporary staffing needs to cover quarantined municipal staff; cleaning buildings; specialized cleaning equipment; public housing; shelter for homeless; signage and education materials on COVID-19; and COVID-19 testing, among other expenses.

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