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    Small Municipalities, Townships and Other Political Subdivisions to Share in Disbursement of Second Round of Relief Aid

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Recently, Ohio Governor Mike DeWine signed House Bill 377 allowing for the disbursement of remaining federal allocation of the Office of Budget and Management Local Fiscal Recovery Fund, Coronavirus Local Fiscal Recovery to small municipalities, townships, and some other political subdivisions.

What does this bill do?

By amending House Bill 168, the prior bill providing for the coronavirus local fiscal recovery fund, this bill increases the 2022 fiscal year appropriation for the Ohio Office of Budget and Management’s Coronavirus Local Fiscal Recovery Fund by $422 million. The good news: local political subdivisions are expected to share in the disbursement.

How does it work?

The American Rescue Plan Act of 2021 previously allocated $843,726,939 to non-entitlement units of local government, those typically serving populations less than 50,000, in Ohio. Upon allocation, these funds are then delivered in two tranches. The first was delivered in May 2021. The second is supposed to be delivered approximately 12 months later. This bill increases House Bill 168’s $422 million appropriation for fiscal year 2022 to $844 million.

Who is eligible to receive funds?

According to the bill, small municipalities, townships and some other political subdivisions that do not receive a direct allocation from the federal government will receive the disbursement.

The Ohio Grants Partnership website provides a detailed list of the allocation and each entity’s payment. That list can be found here.

How can these funds be used?

Under the American Rescue Plan Act of 2021, these funds can only be used by non-entitlement units for costs incurred in response to the COVID-19 pandemic and its economic losses from March 3, 2021, through December 31, 2024.

If you have questions about the impact of House Bill 377, please contact our Government Services practice group.