GAO Update on COVID-19 Relief Funds Spending by States and Localities

GAO Reports & Testimonies

Published February 12th, 2026

Detected February 13th, 2026

Summary

The GAO has released an update on the spending of COVID-19 relief funds by state and local governments. As of March 31, 2025, states had spent 80% of their funds, and localities had spent 84%. Recipients had until December 31, 2026, to spend the remaining funds.

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What changed

The U.S. Government Accountability Office (GAO) has published an update regarding the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. The report indicates that as of March 31, 2025, states had obligated nearly all of their $195.8 billion in awards, with only $10.4 million remaining unobligated. Localities similarly obligated nearly all of their $127.8 billion in awards, with $101 million left unobligated. Treasury has begun recouping funds that were not obligated by the December 31, 2024, deadline.

While states reported spending 80% ($156.3 billion) and localities 84% ($107.2 billion) of their awards as of March 31, 2025, recipients generally have until December 31, 2026, to fully expend the funds. This report serves as an informational update for government agencies on the status of these funds and their utilization, with no new compliance actions required beyond existing reporting and expenditure deadlines.

What to do next

Ensure all SLFRF funds are expended by December 31, 2026.
Continue to adhere to reporting requirements for SLFRF usage.

Penalties

Treasury has begun recouping funds that were not obligated by the December 31, 2024, deadline.

Source document (simplified)

GAO-26-108587 Published: Feb 12, 2026. Publicly Released: Feb 12, 2026.

Fast Facts

Treasury awarded billions of dollars to state and local governments to help cover COVID-19 costs. This Q&A provides an update on the status of this funding.

As of March 31, 2025:

States reported spending $156.3 billion, or 80% of their funds

Localities reported spending $107.2 billion, or 84%

Recipients have until Dec. 31, 2026, to spend the funds.

Recipients were required to obligate their funds (i.e., commit them to projects) by Dec. 31, 2024. Nearly all the funds were obligated, and Treasury has begun recouping funds that weren't.

U.S. 100-dollar bills scattered around with COVID germ clusters layered over them.

Highlights

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 arkinj@gao.gov.

Full Report

Full Report (17 pages)

GAO Contacts

Jeff Arkin Director Strategic Issues arkinj@gao.gov

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Sarah Kaczmarek Managing Director Office of Public Affairs media@gao.gov

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Budget and Spending Local governments Natural disasters Premium pay Revenue loss Surface transportation Tribal governments Unemployment insurance pandemics Territories and possessions Federal spending