COVID-19 Relief: States’ and Localities’ Fiscal Recovery Funds Spending Update for 2025

What GAO Found

State and local government recipients of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program had obligated nearly all of their SLFRF awards, as of March 31, 2025-the most recent data available at the time of this review. The data include information received by Treasury through September 30, 2025. Specifically, states reported obligating all but $10.4 million of the $195.8 billion they received, and localities reported obligating all but $101 million of the $127.8 billion in awards they received.

State and local government recipients generally had until December 31, 2024, to obligate the SLFRF awards they received. Funds that have not been obligated by that date generally must be returned to Treasury. Between March and October 2025, Treasury sent instructions to the state and local recipients that reported unobligated funds, requesting the return of those funds. As of November 2025, states and localities had returned $13.7 million of the total reported $111.4 million in unobligated funds.

Further, states reported spending 80 percent ($156.3 billion) of their SLFRF awards, and localities reported spending 84 percent ($107.2 billion) of their awards as of March 31, 2025.

Reported Spending of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) by States and the District of Columbia, as of March 31, 2025

Both states and localities reported spending most of their SLFRF awards-53 percent ($82.6 billion) and 67 percent ($71.9 billion), respectively-to replace revenue lost due to the pandemic. States and localities generally have until December 31, 2026, to spend their awards.

Why GAO Did This Study

Overall, SLFRF allocated $350 billion to tribal governments, states, the District of Columbia, local governments, and U.S. territories to help cover a broad range of costs stemming from the health and economic effects of the COVID-19 pandemic. SLFRF recipients must regularly submit reports to Treasury on their use of SLFRF awards and the projects undertaken with them.

The CARES Act includes a provision for GAO to monitor the use of federal funds to respond to the COVID-19 pandemic. This report examines the SLFRF funding states and localities are required to report to Treasury. This report updates our October 2023, April 2024, and September 2024 reports on states' and localities' spending and uses of SLFRF.

To conduct this work, GAO analyzed Treasury SLFRF project and expenditure data and interviewed Treasury officials. GAO also reviewed relevant federal laws and regulations governing the SLFRF program and Treasury SLFRF program guidance, policies, and procedures.

For more information, contact Jeff Arkin at [email protected].