OCS Issues Guidance on Role of States and CAAs with respect to CARES Funding

The Office of Community Services (OCS) recently issued a Dear Colleague Letter, CSBG-DCL-2020-21, that clarifies and confirms OCS’s responses to a handful of common questions relating to the supplemental Community Services Block Grant (CSBG) funds community action agencies (CAAs) received under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In the Letter, OCS seeks to address uncertainties about the administration, distribution, and use of supplemental funds by more clearly delineating the state’s role in facilitating CARES funding and the requirements CAAs must meet to provide CARES-funded services. OCS also emphasizes that at all levels of the CSBG network, it is critical to work in partnership to meet the needs of low-income individuals and families, especially during this challenging time. Below are some highlights from the Letter.

Flexibility

OCS urges states to take a flexible approach to the release and administration of CARES funding. Specifically, an approach that facilitates a rapid distribution of funds while limiting the administrative burden placed on CAAs. For example, OCS suggests that states provide blanket allowances with respect to using CSBG resources for new purposes consistent with the CSBG Act, impose brief reporting requirements in the short term that could be added to at a later date, and allow CAAs to make expedited amendments to Community Action Plans.

OCS also restates that COVID-19-related pre-award costs incurred between January 20, 2020 and March 27, 2020 (effective date of CARES Act) may be reimbursed with CARES funding. Examples of COVID-19 related costs include (i) public health costs such as providing personal protective equipment for staff and sanitizing facilities; and (ii) costs incurred to meet individual, family, and community-level needs created by the economic impacts of COVID-19, such as emergency food, housing, utility, employment assistance, case management, and other services to help address emergency needs and promote individual, family, and community economic recovery.

Streamlined Procedures

OCS explains that it has created expedited procedures for distributing CARES funding and amending State CSBG plans. OCS reminds states that a full public hearing is not required for CSBG CARES Supplemental State Plans; rather, states must make them available for public inspection, consistent with CSBG Act requirements on posting, timeframe, review, and comment. OCS clarifies that CARES funding can still be allocated to CAAs during the inspection/comment period if the amended state plan contains the same distribution formula as the accepted State CSBG Plan.

Locally Identified Services and Strategies

OCS emphasizes that CAAs determine how funds should be used to meet community needs, within the CSBG framework, and reiterates that states may not direct how a CAA uses its 90% CARES allocation. In that spirit, CARES funding could be released by states to CAAs in response to emergency community needs, and CAAs could update needs assessments at a later date.

Accountability

While OCS encourages greater flexibility around CARES funding, it also emphasizes that the flexibility does not alter the vital role states play in monitoring the use of those funds consistent with federal requirements. Nor does it relieve CAAs of their accountability as it relates to those requirements.

The full Dear Colleague Letter can be accessed and viewed here.

This News Flash is part of the Community Services Block Grant (CSBG) Legal Training and Technical Assistance (T/TA) Center. It was created by Community Action Program Legal Services, Inc. (CAPLAW) in the performance of the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services Cooperative Agreement – Grant Award Number 90ET0467-03. Any opinion, findings, conclusions, or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the U.S. Department of Health and Human Services, Administration for Children and Families.

The contents of this news flash are intended to convey general information only and do not constitute legal advice. Any communication through this publication or through CAPLAW’s website does not constitute or create an attorney-client relationship. If you need legal advice, please contact CAPLAW or another attorney directly.