Kentucky Association of Counties

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The Kentucky Association of Counties

Congress passes new COVID relief package, including aid to states and local governments

Congress has now passed the American Rescue Plan Act with an estimated $2.4 billion in direct aid to the state and millions of dollars in much-needed aid for Kentucky counties.

President Biden is expected to sign the bill into law this Friday.

In addition to stimulus checks, funding for vaccines and testing, unemployment assistance, enhanced tax credits for families and workers, and money for public schools, the legislation includes $350 billion in aid to states and local governments. 

States, along with the District of Columbia, will receive $195.3 billion and local governments will receive $130.2 billion, split evenly between municipalities and counties, resulting in a direct county allocation of $65.1 billion. County allocation will be based on population.

State Budget Director John Hicks told legislators yesterday that he expects the state of Kentucky to get a direct allocation of approximately $2.4 billion. Excluding Jefferson County, Kentucky counties will receive a direct allocation of approximately $717 million. 

The deadline to spend funds would be December 31, 2024.

The U.S. Department of Treasury will oversee and administer these payments to state and local governments, and every county will be eligible to receive a direct allocation from Treasury.

The bill outlines that funds may be used to:

  1. Respond to the public health emergency with respect to COVID-19 or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
  2. Respond to workers performing essential work during the COVID–19 public health emergency by providing premium pay to eligible workers of the metropolitan city, non-entitlement unit of local government, or county that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;
  3. 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, or
  4. Make necessary investments in water, sewer, or broadband infrastructure.

The National Association of Counties has developed county-level estimates for allocations, which you can find below. Note that these estimates are not official values from the U.S. Treasury and are subject to change. You can see more of NACo’s analysis of the legislation here.

KACo is following this new legislation closely and will publish more details as they become available. 

NACo’s County-Level Estimates from the American Rescue Plan Act of 2021

Adair $3,724,110
Allen $4,133,913
Anderson $4,411,641
Ballard $1,529,829
Barren $8,581,821
Bath $2,424,298
Bell $5,048,746
Boone $25,907,212
Bourbon $3,837,761
Boyd $9,060,668
Boyle $5,829,952
Bracken $1,610,316
Breathitt $2,449,511
Breckinridge $3,971,388
Bullitt $15,840,557
Butler $2,497,803
Caldwell $2,472,202
Calloway $7,564,004
Campbell $18,150,041
Carlisle $923,173
Carroll $2,061,817
Carter $5,197,113
Casey $3,133,939
Christian $13,665,477
Clark $7,032,986
Clay $3,859,676
Clinton $1,981,718
Crittenden $1,707,869
Cumberland $1,282,745
Daviess $19,687,433
Edmonson $2,356,418
Elliott $1,457,876
Estill $2,735,772
Fayette $62,673,340
Fleming $2,827,895
Floyd $6,902,267
Franklin $9,889,390
Fulton $1,157,651
Gallatin $1,720,088
Garrard $3,426,212
Grant $4,861,978
Graves $7,227,511
Grayson $5,125,354
Green $2,121,940
Greenup $6,807,041
Hancock $1,691,578
Hardin $21,519,621
Harlan $5,044,479
Harrison $3,662,823
Hart $3,691,721
Henderson $8,768,201
Henry $3,127,538
Hickman $849,474
Hopkins $8,666,575
Jackson $2,585,077
Jefferson* $434,525,029
Jessamine $10,495,271
Johnson $4,303,226
Kenton $32,388,234
Knott $2,871,533
Knox $6,040,381
Larue $2,792,403
Laurel $11,794,307
Lawrence $2,970,638
Lee $1,435,766
Leslie $1,915,583
Letcher $4,180,072
Lewis $2,574,605
Lincoln $4,761,127
Livingston $1,783,120
Logan $5,256,266
Lyon $1,592,279
Madison $18,034,256
Magoffin $2,358,551
Marion $3,737,880
Marshall $6,031,653
Martin $2,171,201
Mason $3,310,621
McCracken $12,687,418
McCreary $3,341,846
McLean $1,785,641
Meade $5,541,363
Menifee $1,258,502
Mercer $4,253,770
Metcalfe $1,953,208
Monroe $2,065,502
Montgomery $5,460,877
Morgan $2,581,199
Muhlenberg $5,938,948
Nelson $8,966,606
Nicholas $1,409,778
Ohio $4,653,489
Oldham $12,955,255
Owen $2,114,182
Owsley $856,262
Pendleton $2,829,641
Perry $4,995,605
Pike $11,224,694
Powell $2,396,952
Pulaski $12,602,277
Robertson $408,834
Rockcastle $3,237,892
Rowan $4,743,866
Russell $3,476,055
Scott $11,055,575
Shelby $9,507,903
Simpson $3,601,925
Spencer $3,753,007
Taylor $4,997,739
Todd $2,384,346
Trigg $2,841,471
Trimble $1,642,898
Union $2,789,106
Warren $25,774,361
Washington $2,345,751
Wayne $3,943,460
Webster $2,510,021
Whitley $7,033,179
Wolfe $1,388,056
Woodford $5,184,895

*City/county consolidations are eligible to receive funds from both the county $65.1 billion and the city $65.1 billion allocation. City allocation estimates produced by the Congressional Research Services.

Kentucky Association of Counties
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