Budget

New guidance from Treasury on uses of CARES Act relief funds

The U.S. Department of the Treasury has again updated its “Coronavirus Relief Fund Frequently Asked Questions” document. The relief fund is the source of the $2.953 billion that was allocated to Washington’s state and local governments. The new update confirms that governments may use the money as matching funds for FEMA disaster assistance. (Under the […]

$129.754 billion left in paycheck protection program, and the Fed cautions that small businesses are “particularly vulnerable” in this recession

According to the Small Business Administration (SBA), 94,873 businesses in Washington have received $12.094 billion in paycheck protection loans (through June 12). The SBA estimates that there is $129.754 billion of funding left for the program. Applications must be made before the end of June, so it seems unlikely that the funding will be exhausted. […]

Ways & Means work session highlights more potential uses of federal aid funds

On Tuesday, the Senate Ways & Means Committee heard from David Schumacher of the Office of Financial Management (OFM) about the federal aid funding for Washington. One of the main sources of this funding is the coronavirus relief fund adopted as part of the CARES Act. As I’ve written, OFM has already distributed $388.3 million […]

Congress approves changes to paycheck protection program

Last night the U.S. Senate approved H.R. 7010. The bill was passed by the House last week. If signed by the president, it will make the paycheck protection program more flexible. For the loans to be forgiven, businesses will have 24 weeks to spend loan funds (instead of eight); 60 percent (instead of 75 percent) […]

Treasury expects states to provide more federal COVID-19 relief funds to local governments than Washington has

The U.S. Department of the Treasury has updated its “Coronavirus Relief Fund Frequently Asked Questions” document. The update suggests that the state of Washington should forward additional funds to local governments. Under the CARES Act, the federal government provided $150 billion for states and local governments with populations over 500,000. Of that funding, $2.953 billion […]

92,627 paycheck protection loans have been approved for Washington businesses, and a bill is moving through Congress to increase flexibility for the program

According to the Small Business Administration, 92,627 loans have been made to Washington businesses under both rounds of the paycheck protection program. (The numbers are through May 30.) Altogether, $12.014 billion has been approved for Washington businesses (this figure was revised down since the May 8 report). Currently, the loans are forgivable if businesses do […]

$2.5 million left of state funds for COVID-19 response; state has begun distributing federal relief dollars

In March the Legislature passed EHB 2965, which appropriated $175 million from the disaster response account (originally from the rainy day fund) and $25 million from the general fund–federal (GFF) for COVID-19 response. The federal funds have been exhausted, and $2.5 million remains of the disaster response account (DRA) funds. Most recently, the state distributed […]

Washington will not use Fed’s municipal lending facility

Under the CARES Act (one of the federal coronavirus relief bills), the Federal Reserve has $500 billion with which to buy short term notes from states and certain local governments (“eligible issuers”). This municipal lending facility (MLF) is meant to help these governments “better manage cash flow pressures.” (The Fed reports that, as of May […]

Preliminary revenue loss estimates for King County, and how will the county use its federal aid funds?

At a committee meeting May 5, the King County Council heard about potential revenue losses over the next few years. Dwight Dively of the Office of Performance, Strategy and Budget said that an interim revenue forecast expects that over three years (through 2022), King County’s sales tax revenues will decline by $79 million for the […]

Federal coronavirus relief fund payments made to Washington governments; prospects uncertain for next relief package

The U.S. Department of the Treasury has made the payments to states and certain local governments required by the CARES Act’s coronavirus relief fund. The $2.953 billion paid to governments in Washington must be used for new spending related to COVID-19 response. It cannot be used to cover revenue shortfalls. The federal government made direct […]