Coronavirus Resources for Schools

CARES Act- What Public Entity Employers Need to Know

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Page 0 of 5 CARES Act: What Public Entity Employers Need to Know About the Federal COVID-19 Stimulus ATTORNEYS Nate J. Kowalski Partner 562-653-3200 Irma Rodríguez Moisa Partner 562-653-3200 03.31.2020 On March 27, 2020, after passing the United States Senate and House of Representatives, the President signed into law the "Coronavirus Aid, Relief, and Economic Security Act" ("CARES Act"), passed as House Resolution 748 ("HR 748"). This landmark law provides wide-ranging financial relief to businesses, public sector employers, and individuals impacted by the current COVID-19 (Coronavirus) pandemic. Important! The final version of the law differs from original drafts of the bill in significant ways. The Senate had previously introduced Senate Bill 3548 for this purpose, but ultimately passed HR 748. The final CARES Act includes some, but not all, of the major provisions contained in SB 3548 initially circulated in the Senate. Therefore, be sure to read this Alert closely and in its entirety. Here's what you need to know: Coronavirus Relief Fund (Section 5001) The CARES Act provides financial assistance to public employers specifically to deal with "necessary expenditures incurred due to the public health emergency" relating to COVID-19. Congress appropriated $150 billion for fiscal year 2020 for this purpose, and earmarked $139 billion for the 50 States and "units of local government" entities therein. The law does not specify what "expenditures" qualify as "necessary" or arising from the coronavirus pandemic. Therefore, it is not clear if local public agencies can request financial assistance to cover lost tax revenue, as lost revenue may not count as an "expenditure". Alerts & Articles

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