The CARES Act & SLED Tech

Many in the technology market are wondering how the CARES Act will benefit SLED agencies and what technology purchases may arise. The CARES Act has allocated $139 billion for the State/Local government agencies. Here’s what we know so far:

Who will receive the money?

• 171 counties and cities/towns have qualified for funding, based on having a population of 500,000 people or more, according to the 2019 Census Bureau.

What can they spend the money on?

• The U.S. Department of Treasury has listed out several areas where the funds can be spent, but the following directly relates to technology:

1. Expenses to facilitate distance learning, including technological improvements, in connection with school closings to enable compliance with COVID-19 precautions.
2. Expenses to improve telework capabilities for public employees to enable compliance with COVID-19 public health precautions.

When will funds be spent?

• To ensure payments are made within the 30 day period specified by the CARES Act, governments eligible for payments needed to provide payment information and required supporting documentation and submit completed payment materials not later than 11:59 p.m. EDT on April 17, 2020. Eligible local and Tribal governments that do not provide required information—and in the case of a local government, the required certification—by 11:59 p.m. EDT on April 17, 2020, may not receive any payment from the Fund.
• If a government has not used funds it has received to cover costs that were incurred by December 30, 2020, as required by the statute, those funds must be returned to the Department of the Treasury.

CJIS GROUP will be closely monitoring updates regarding the CARES Act and how government agencies will be spending these funds.

Sincerely,

Kelsie Stephens

Director of Research | CJIS GROUP LLC