The U.S. Treasury has been using FAQs to expand permissible uses of Coronavirus Relief Fund (CRF) monies, distributed pursuant to the CARES Act. You can view the latest (July 8) at Treasury CRF FAQs.
On page 7, that guidance states (emphasis added):
‘If a recipient must issue tax anticipation notes (TANs) to make up for tax due date deferrals or revenue shortfalls, are the expenses associated with the issuance eligible uses of Fund payments?
‘If a government determines that the issuance of TANs is necessary due to the COVID-19 public health emergency, the government may expend payments from the Fund on the interest expense payable on TANs by the borrower and unbudgeted administrative and transactional costs, such as necessary payments to advisors and underwriters, associated with the issuance of the TANs.’
As a reminder, only the State of New Jersey and our nine most populous counties received CRF funding. That funding can only be used for limited purposes, outlined in the FAQs, However, Treasury Guidance permits recipient governments to pass funding on to non-qualifying local units, as sub-recipients. A total of $3,444,163,690.30 came to the State and the nine counties. Here are the subtotals.
- Bergen County $162,662,060.40
- Camden County $ 88,375,283.90
- Essex County $139,414,976.30
- Hudson County $117,327,044.40
- Middlesex County $143,966,956.60
- Monmouth County $107,974,955.70
- Ocean County $105,949,274.70
- Passaic County $87,564,767.20
- Union County $97,077,214.30
- Payment to the State of NJ $2,393,851,156.80
Contact: Jon Moran, Senior Legislative Analyst, email@example.com, 609-695-3481 x121.