Padilla Announces $181.5 Million Headed to CA Counties through American Rescue Plan
WASHINGTON, D.C. — U.S. Senator Alex Padilla (D-Calif.) announced that the U.S. Department of the Treasury released over $181.5 million to California counties through the Local Assistance and Tribal Consistency Fund (LATCF). The LATCF provides $1.5 billion nationally to counties through the American Rescue Plan, which Padilla voted for in 2021.
Funding may be used for programs, services, and capital expenditures. The fund also provides $500 million over the next two years for Tribal governments nationwide, who have until the end of October 2022 to submit applications for their allocations.
“The COVID-19 pandemic created a major strain on county governments as traditional revenue sources fell while services were needed more than ever before,” Senator Alex Padilla said. “I worked with my Senate colleagues to ensure that the American Rescue Plan included adequate support for local governments who host our public lands, and for Tribal Nations impacted by the pandemic. This funding helps meet that commitment, by providing capital for counties and Tribal nations to continue operating health services, improve infrastructure, and support public education.”
“The California State Association of Counties (CSAC) applauds Senator Padilla for his tireless leadership in working to ensure that payments under the LATCF are prioritized for California’s public lands counties,” CSAC President and Siskiyou County Supervisor Ed Valenzuela said. “These critically important funds, of which California will receive over $181 million, will help my home county of Siskiyou and other counties in the state to continue to respond to the negative economic impacts of the COVID-19 pandemic. We also commend Senator Padilla for continuing to work toward passage of legislation (S. 3011) that would provide counties with additional flexibility in the use of American Rescue Plan Recovery Fund dollars.”
Click here for a breakdown of funding going to each California county.
The LATCF funding allocation is based on the number of acres of federal land within each county and the county’s relative economic condition. Predominantly in California and other western states, many counties help pay for roads, schools, and other services that directly benefit and, in many cases, support federal lands and outdoor recreation economies. Since 1976, the federal government has provided payments to local governments with non-taxable federal land within their borders to offset the lost property tax revenue. LATCF funding from the American Rescue Plan will help these counties continue to provide vital services.
Per guidance from the U.S. Department of the Treasury, recipient counties may treat these funds in a similar manner to how they treat funds generated from their own revenue. Specifically, the American Rescue Plan directs that recipients may use funds for any “governmental purpose” other than a lobbying activity. Programs, services, and capital expenditures that are traditionally undertaken by a government are considered to fulfill a “governmental purpose.” For Tribal governments, investing in activities undertaken by Tribal enterprises, such as operating or capital expenditures for businesses that are owned or controlled by a Tribal government, is considered a governmental purpose.
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