Kentucky Association of Counties

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The Kentucky Association of Counties

What we know about the new federal COVID relief package

On March 11, President Biden signed the American Rescue Plan Act into law, which includes direct aid to Kentucky counties.

In addition to $350 billion in aid to states and local governments, the legislation includes $1,400 direct payments to individuals, funding for vaccines and testing, unemployment assistance, enhanced tax credits for families and workers, money for public schools, and more. 

States, along with the District of Columbia, will receive $195.3 billion. Local governments will receive $130.2 billion, split evenly between municipalities and counties, resulting in a direct allocation of $65.1 billion to counties. 

State Budget Director John Hicks told legislators this week that he expects the state of Kentucky to get a direct allocation of approximately $2.4 billion.

Direct aid to Kentucky counties

How much will my county receive?

Excluding Jefferson County, Kentucky counties will receive an estimated direct allocation of approximately $717 million. The amount each county will receive is based on population. You can see an estimated allocation for your county below.

The U.S. Department of Treasury will oversee and administer these payments.

When will my county receive funding?

The allocation will be distributed directly to counties in two parts:

  • 50 percent this year. The legislation specifies that the first payment go out within 60 days of enactment. 
  • 50 percent no earlier than one year after the first payment.

The deadline to spend funds is December 31, 2024.

Note that this is not a grant program. The allocation will be distributed directly up front from the U.S. Department of Treasury to the county. Counties will be responsible for managing the distribution and spending the funds on allowable expenses. Your county will be required to provide periodic reports with a detailed accounting of the use of funds to the Treasury Department. If your county does not comply with any provision of this bill, it will be required to repay the U.S. Treasury an equal amount to the funds used in violation. 

KACo will provide additional information on reporting requirements as those details become available. 

How can the funding be spent?

As with the 2020 CARES Act funding, the U.S. Department of Treasury will be issuing more detailed guidance on how these funds can be used. As soon as the guidance is issued, we will distribute additional analysis. However, the bill outlines that funds may be used by counties to:

  1. Respond to the public health emergency with respect to COVID-19 or its negative economic impacts.
    • This could include, but is not limited to: 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 county workers that are performing essential work, or by providing grants to eligible employers that have eligible workers who perform essential work.
    • Premium pay is defined as an additional amount up to $13 per hour that is paid to an eligible worker for work during the COVID-19 pandemic. The bill imposes a cap of $25,000 for any single eligible worker.
  3. For the provision of government services to the extent of the reduction in revenue (for example, property, occupational license or insurance premium tax revenue) due to COVID, relative to revenues collected in the most recent full fiscal year of the county prior to the emergency (for example, FY 2019).
  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 law closely and will publish more details as they become available.

Estimates of county-level allocations 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
400 Englewood Drive Frankfort, KY 40601