The Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (the Act), signed by the President on Friday, March 6, provides $8.3 billion in much needed multi-year funds to battle the coronavirus public health crisis. While there are many important aspects of the Act, below we focus on the Act’s grants for construction, alteration, or renovation of non-federally owned facilities.

State and Local Level Preparedness and Response Capability – The Act allocates $3.1 billion to the Secretary of Health and Human Services (the Secretary) for the Public Health and Social Services Emergency Fund to use in part to fund construction, alteration, or renovation of non-federally owned facilities to improve preparedness and response capability at the state and local level. Similarly, the Act permits the government to use part of the $2.2 billion Centers for Disease Control and Prevention (CDC) allocation for the construction, alteration, or renovation of non-federally owned facilities to improve preparedness and response capability at the state and local level.

Production of Vaccines, Therapeutics, and Diagnostics – The government may use part of the Public Health and Social Services Emergency Fund for the construction, alteration, or renovation of non-federally owned facilities for the production of vaccines, therapeutics, and diagnostics where the Secretary determines that such a contract is ecessary to secure sufficient amounts of such supplies. Given the reported diagnostic test shortage, this could be a path forward for the Secretary to expedite production of diagnostic tests. Also, grants under this Act may be instrumental in expediting the vaccines and therapeutics to the public.

As the government confronts this crisis, companies may need to provide a rapid response to state and local level entities as well as the federal government for the construction, alteration, or renovation of non-federally owned facilities. Companies seeking these funds may require immediate assistance with grant proposals and with follow-on compliance requirements. Our experience with government grants allows us to partner with our clients to navigate the grant proposal and compliance requirements at the federal, state, and local level.

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