# Plain Language Summary of H.R. 2736

This bill would create a new rule for how state and local governments can use federal coronavirus relief money. Specifically, it says that cities, counties, and states cannot start spending money from the American Rescue Plan (the 2021 relief package) until they've completely used up all the money they received from the earlier CARES Act (the 2020 relief package). In other words, it's a "use it all first" requirement—governments would have to finish spending their older relief funds before they could tap into newer funds.

The practical effect is that this bill would slow down how quickly local governments can access and spend their most recent federal aid. If a city or county still has unspent CARES Act money sitting around—whether because they were being careful about how to use it, waiting for the right projects, or just hadn't gotten around to obligating it yet—they'd be locked out of their American Rescue Plan funds until every penny of the older money was committed to something. This could create a bottleneck, especially for communities that were being cautious or strategic about their spending, forcing them to rush to obligate old funds just to access new ones.

For everyday people, this matters because it could delay local government projects and services funded by federal relief money. A city might have a better plan for how to use 2021 relief funds but would be forced to commit 2020 funds first, potentially leading to less efficient spending or projects that don't address current community needs as well. The bill essentially prioritizes clearing out old money over allowing governments to respond flexibly to changing circumstances.

To amend the Social Security Act to prohibit State and local governments from obligating any coronavirus relief funds provided by the American Rescue Plan Act of 2021 until all coronavirus relief funds made available by the CARES Act are obligated, and for other purposes.

Rep. Mace, Nancy [R-SC-1]

 <p>This bill prohibits a state, territorial, tribal, or local government from obligating any COVID-19 relief funds provided by the American Rescue Plan Act of 2021 until such government obligates all its relief funds made available by the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).</p>