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Iowa To Receive $222 Million For Local Governments Serving Populations Under 50,000

On Friday, Iowa Gov. Kim Reynolds made a request for $222 million in pandemic relief from the American Rescue Package of 2021. This will allow 930 city governments access to federal funding starting immediately. The Coronavirus Local Fiscal Recovery Fund will provide $19.5 billion nationally to support tens of thousands of non-entitlement units of local governments, which are governments typically serving populations under 50,000. This fiscal year, $111 million will be made available and another $111 million in the next fiscal year. Cities have 30 days to submit paperwork to the Iowa Department of Management to receive the funds. They will also have to complete jurisdiction over how this money is spent following compliance with federal guidance and parameters. Over one-third of all eligible cities in the state have already completed their paperwork. The Department of the Treasury will make payments to each state for distribution.

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