Subsection 601(d) of the Social Security Act, as added by section 5001 of the CARES Act, states that the funds can cover only those costs of the State, Tribal government or unit of local government that:
- Are necessary expenditures incurred due to the public health emergency with respect to COVID-19;
- Were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and
- Were incurred during the period that begins on March 1, 2020 and ends on Dec. 31, 2021.
Funds may not be used for a special shareholder dividend, corporate bonuses or to offset lost revenue. Chugach is also subject to reporting and auditing requirements by Treasury to assess how funds are used and assure compliance with the CARES Act.
Funds received must cover costs that were incurred by Dec. 31, 2021. All unspent funds must be returned to the Department of the Treasury.