Oregon expects $2.45 billion in federal coronavirus relief

Published 10:00 am Friday, April 17, 2020

PORTLAND — Oregon officials say they expect the state to receive around $2.45 billion in coronavirus aid money from the federal coronavirus relief package.

Most of that money will go to the state, the city of Portland and Multnomah and Washington counties.

According to the U.S. Treasury Department, the maximum amount Oregon can get to pass to local jurisdictions is $1.6 billion. The federal CARES Act requires the Treasury Department to make all of that money available to states by next Friday, said Oregon Legislative Fiscal Officer Ken Rocco.

The rest of the $2.45 billion will be spread across nearly four dozen other recovery programs covered by the federal CARES Act, said Charles Boyle, Oregon Gov. Kate Brown’s press secretary. They include child care and development block grants, which will receive around $38 million, and airports around the state, which are set to receive more than $140 million.

Schools and colleges, hospitals, transit systems, and large and small businesses are also among areas designated to receive support. The $2.2 trillion CARES Act, short for the Coronavirus Aid, Relief and Economic Security Act, was signed into law at the end of March.

Oregon’s $1.6 billion local government allocation is a cut of $150 billion being made available to state, local and tribal governments through the CARES Act’s Coronavirus Relief Fund. The money can’t be used to make up lost revenue, according to the U.S. Department of Treasury. It can only be used to cover unbudgeted expenses due to COVID-19 that occur between March 1 and Dec. 30.

Brown told reporters Tuesday that being unable to replace lost revenue was a frustration “shared by governors around the country.”

“The challenge for a state like Oregon, because we are an income tax-based state, that goes to fund our public services, we cannot use that to backfill the revenue we have lost because I shuttered the economy to stop the spread of the disease and flatten the curve,” Brown said.

Counties and cities that had populations of more than 500,000 in 2019 were eligible for direct funding. All the other jurisdictions can only receive a share of funds through the state.

There was initial concern Multnomah County wouldn’t receive any direct federal aid because Portland is home to more than 650,000 of the county’s more than 810,000 residents. But in the end, both jurisdictions were allowed to apply for aid, with the county’s funding based on its population outside Portland city limits.

According to city and county officials, Portland expects to receive around $114 million and Multnomah County around $28 million. Those funds are expected to arrive next week.

Philip Bransford, a Washington County spokesman, said officials in his jurisdiction have “more questions than answers at this point.”

“We are not even sure of what that payment amount would be,” he said. “We’ve noted that the U.S. Treasury is likely to hand down additional requirements on what eligible uses of these dollars will be, beyond the restrictions outlined in the federal law.”

Projections from The Tax Foundation, a Washington D.C.-based nonprofit, estimate Washington County could receive nearly $105 million.

Multnomah County Chair Deborah Kafoury said county officials are in talks with city and state authorities about the federal funding to make sure “we’re all in agreement on how the money can best be spent.”

During a county board meeting last week, budget director Christian Elkin said the county has already received some federal funds from the CARES Act, including a $2.6 million grant for shelters.

This article was originally published by The Oregonian/OregonLive, one of more than a dozen news organizations throughout the state sharing their coverage of the novel coronavirus outbreak to help inform Oregonians about this evolving heath issue.

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