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17 <br /> instruction capabilities may be a substantially different use of funds, online instruction itself is not a <br /> substantially different use of public funds than classroom instruction. <br /> May a State receiving a payment transfer funds to a local government? <br /> Yes,provided that the transfer qualifies as a necessary expenditure incurred due to the public health <br /> emergency and meets the other criteria of section 601(d) of the Social Security Act. Such funds would be <br /> subject to recoupment by the Treasury Department if they have not been used in a manner consistent with <br /> section 601(d)of the Social Security Act. <br /> May a unit of local government receiving a Fund payment transfer funds to another unit of <br /> government? <br /> Yes. For example, a county may transfer funds to a city,town,or school district within the county and a <br /> county or city may transfer funds to its State,provided that the transfer qualifies as a necessary <br /> expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of <br /> the Social Security Act outlined in the Guidance. For example, a transfer from a county to a constituent <br /> city would not be permissible if the funds were intended to be used simply to fill shortfalls in government <br /> revenue to cover expenditures that would not otherwise qualify as an eligible expenditure. <br /> Is a Fund payment recipient required to transfer funds to a smaller, constituent unit of government <br /> within its borders? <br /> No. For example, a county recipient is not required to transfer funds to smaller cities within the county's <br /> borders. <br /> Are recipients required to use other federal funds or seek reimbursement under other federal programs <br /> before using Fund payments to satisfy eligible expenses? <br /> No. Recipients may use Fund payments for any expenses eligible under section 601(d) of the Social <br /> Security Act outlined in the Guidance. Fund payments are not required to be used as the source of <br /> funding of last resort. However, as noted below,recipients may not use payments from the Fund to cover <br /> expenditures for which they will receive reimbursement. <br /> Are there prohibitions on combining a transaction supported with Fund payments with other CARES <br /> Act funding or COVID-19 relief Federal funding? <br /> Recipients will need to consider the applicable restrictions and limitations of such other sources of <br /> funding. In addition,expenses that have been or will be reimbursed under any federal program, such as <br /> the reimbursement by the federal government pursuant to the CARES Act of contributions by States to <br /> State unemployment funds, are not eligible uses of Fund payments. <br /> Are States permitted to use Fund payments to support state unemployment insurance funds generally? <br /> To the extent that the costs incurred by a state unemployment insurance fund are incurred due to the <br /> COVID-19 public health emergency, a State may use Fund payments to make payments to its respective <br /> state unemployment insurance fund, separate and apart from such State's obligation to the unemployment <br /> insurance fund as an employer. This will permit States to use Fund payments to prevent expenses related <br /> to the public health emergency from causing their state unemployment insurance funds to become <br /> insolvent. <br /> 2 <br />