The CARES Act provides that payments from the Fund may only be used to reimburse costs that:
• are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19);
• exceed $1,000
• were not accounted for and/or reimbursed under another budget or funding source; and
• were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.
Necessary expenditures incurred due to the public health emergency
The requirement that expenditures be incurred “due to” the public health emergency means that expenditures must be used for actions taken to respond to the public health emergency. These may include expenditures incurred to allow the applicant to respond directly to the emergency, such as by addressing medical or public health needs.
Costs not accounted for in another budget or funding source
The CARES Act also requires that payments be used only to cover costs that were not accounted for in another budget or funding source. A cost meets this requirement if either (a) the cost cannot lawfully be funded using a line item, allotment, or allocation within that budget or (b) the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation or (c) is or could be covered by another funding source.
Costs incurred during the period that begins on March 1, 2020, and ends on December 30, 2020
A cost is “incurred” when the applicant has expended funds to cover the cost.
Examples of eligible expenditures
Examples of eligible expenditures include, but are not limited to:
1. Medical expenses such as:
• COVID-19-related expenses of Nursing Homes, Long Term Care Facilities, clinics, non-profits and similar facilities.
• Expenses of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs.
• Costs of providing COVID-19 testing, including serological testing.
• Emergency medical response expenses, including emergency medical transportation, related to COVID-19.
• Expenses for establishing and operating public telemedicine capabilities for COVID-19 related treatment.
• Expenses for hiring additional staffing not already accounted for in the staffing of the facility, to meet the needs of the facilities to maintain the separation requirement to meet the CDC guidance related to isolation and quarantine due to COVID-19.
2. Public health expenses such as:
• Expenses for acquisition and distribution of medical and protective supplies, including sanitizing products and personal protective equipment, for medical personnel, social workers, and other public health or safety workers in connection with the COVID-19 public health emergency.
• Expenses for disinfection of public areas and other facilities, e.g., nursing homes, in response to the COVID-19 public health emergency.
• Expenses for public safety measures undertaken in response to COVID-19.
Examples of ineligible expenditures
Examples of costs that would not be eligible for reimbursement include, but are not limited to:
• Expenses or damages covered by insurance.
• Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency.
• To fill shortfalls in revenue to cover expenditures that would not otherwise qualify under the statute. Although a broad range of uses is allowed, revenue replacement is not a permissible use of Fund payments.
• Expenses that have been or will be reimbursed under any State or federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds.
• Reimbursement to donors for donated items or services.
• Workforce bonuses other than hazard pay or overtime.
• Severance pay.
• Legal settlements.
Reimbursement Priority Phases
This funding will be reimbursed following the priorities listed below, priority will be given to the applicant whose requests are related to the following:
Highest Priority (From Governor’s Plan)
- Personal Protective Equipment
- Expanded Testing Capacity for COVID-19
- Contact Tracing Associated Costs
Secondary Priority (Prevention and Control of the Spread of COVID-19)
- Decontamination Equipment
- Disinfection Supplies
- Additional Staffing for Cleaning
- Social Distancing Costs
- Non-PPE masking
- Covid-19 prevention outreach activities
- Monitoring equipment (pulse oximeters, thermometers, etc.)
- Other cost associated with preventing the spread of COVID-19
- Health Department expenses for COVID-19 related continuity of operations
Tertiary Priority (Direct Patient Care Costs)
- Additional oxygen / oxygen generating equipment in response to outbreak
- Direct care staffing (beyond customary staffing) in response to outbreak
- Other non-reimbursable increases in costs related to COVID-19