President Biden signed The American Rescue Plan Act of 2021 into law on March 12, building upon the relief measures introduced by the CARES Act in March 2020. As part of the Rescue Plan Act’s recovery package, the Coronavirus State and Local Fiscal Recovery Fund provides $350 billion in new federal fiscal assistance for states, territories, tribes, counties, and municipalities. Local governments will directly receive $131.2 billion, which is split evenly between municipalities and counties. See how much aid your county is estimated to receive.
The U.S. Treasury will oversee and administer these payments, which will be delivered in two tranches, with the first payment to be made no later than 60-days after enactment, and the second payment no earlier than 12 months after the first payment.
The bill qualifies your city or county to put relief funds towards adopting and expanding a pre-arrest diversion program, which can substantially offset the strain that COVID-19 has placed on the criminal justice system.
According to the bill, funds may be used:
1. To “respond to the public health emergency with respect to COVID19 or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.” (Note: the use cases listed are examples that indicate congress’ intent and local governments are not limited to using funds for these purposes).
2. “For the provision of government services to the extent of the reduction in revenue” (i.e. online, property or income tax) due to the public health emergency.”
Here are several examples of how COVID-19 has impacted courts and law enforcement and how a Lex Loci-powered pre-arrest diversion program can improve the delivery of these essential public services:
COVID-19 has caused delays in court systems around the country, resulting in a massive backlog of cases and endangering their ability to deliver swift trials. Pre-pandemic, misdemeanors already accounted for 80% of criminal dockets. Implementing a diversion program that keeps low-level offenders out of the criminal justice system can ease the burden on courts.
The pandemic has hastened the transition from paper forms to digital databases. Many existing diversion programs are still reliant on physical referral forms, which are passed from law enforcement to diversion program coordinators and social workers. Lex Loci eliminates the need for paperwork, streamlining the referral process and making it easier for different agencies to work together remotely.
COVID-19 spreads rapidly in prisons and jails, with the incarcerated population’s rate of infection 5x higher than the general population. To reduce the impact of the virus on incarcerated individuals, many jurisdictions are implementing or expanding diversion programs that keep low-level offenders out of jail.
The American Rescue Plan Act requires periodic reporting on the use of funds. Lex Loci’s pre-arrest diversion platform analytics show the number of program participants who have been diverted from jails, along with detailed reporting on participants’ race, education levels, and the diversion programing they participate in. Platform analytics can be used to demonstrate the economic and behavioral support high-risk individuals have received in response to the negative impact of COVID-19.
To learn more about how relief funds can finance your purchase of Lex Loci, reach out. We will be happy to work with city and county management to ensure that Lex Loci complies with the bill’s usage provisions and reporting requirements.
Requirements and considerations:
States are required to report how funds are used and how their tax revenue was modified during the time that funds were spent during the covered period (covered period begins on March 3, 2021 and ends on the last day of the fiscal year a state or local government has expended or returned all funds to the U.S. Treasury).
Local governments would be required to provide “periodic reports” providing a detailed accounting of the use of funds.
If a state, county or municipality does not comply with any provision of this bill, they will be required to repay the U.S. Treasury an equal amount to the funds used in violation.
The deadline to spend funds would be December 31, 2024.
In order to receive a payment either under the first or second tranche, local governments must provide the U.S. Treasury with a certification signed by an authorized officer.