Might any gap funding be made available to states to cover temporary delays and reductions in state tax collections and expected reductions in fees and other special revenue due to decreased economic activity during the emergency?

We interpret this question to be either (1) whether EPA can authorize a state to increase the time between disbursement of grant funds and use of the funds to accommodate funding shortfalls from other these sources; or (2) whether EPA has the ability to provide additional funding to help bridge the gap between the time tax/fee revenues should’ve been received and when they are received. Any relief with respect to disbursement is governed by the Treasury regs in 31 CFR Part 205 as provided in 2 CFR 200.305 and would require a regulatory exception from Treasury. Also, our ability to provide additional funding for this purpose would require new authority, e.g., in a stimulus.

Return to Frequent Questions from State, Local and Tribal Leaders about Coronavirus (COVID-19).

Might any gap funding be made available to states to cover temporary delays and reductions in state tax collections and expected reductions in fees and other special revenue due to decreased economic activity during the emergency?

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