NOTES TO THE FINANCIAL STATEMENTS 170 

Note 29. COVID-19 Activity 

On March 11, 2020, a novel strain of the Coronavirus, also known as COVID-19, was declared a pandemic by the 

WHO. As a result, a national emergency was declared in the U.S. concerning the COVID-19 outbreak on March 13, 2020. 

The global spread of COVID-19, which commenced in early spring of 2020 and continued throughout FY 2022 resulted in a 

severe global health and economic crisis. In FY 2021 Congress passed the CAA, which was signed into law on December 27, 

2020, and the ARP on March 11, 2021. Both acts, along with several bills, provided additional funding to help supplement 

the COVID-19 relief efforts that started in FY 2020 including the CARES Act on March 27, 2020. The CARES Act was 

subsequently modified in legislation in April, June, and July of 2020 to add funding and adjust programs for continued 

pandemic response. 

The COVID-19 related legislation provided supplemental appropriations totaling $4.5 trillion for federal entities to 

respond to COVID-19 since the beginning of the pandemic. The $4.5 trillion includes enacted rescissions, returns of unused 

permanent and indefinite authority, and obligation adjustments. Significant impacts of these programs on the government’s 

FYs 2022 and 2021 Balance Sheet and financial results are discussed below. For additional information regarding COVID-19 

relief efforts please refer to Treasury, HHS, Education, DOT, USDA, SBA, DHS, and DOL’s financial statements. 

The government invested in SPVs for the purpose of enhancing the liquidity of the U.S. financial system. As of 

September 30, 2022, and 2021, Treasury had $17.8 billion and $25.6 billion, respectively, of equity investments in SPVs 

established through the FRBNY and FRBB. Treasury’s funds remaining in the SPVs funded under the CARES Act cannot be 

used for further lending, asset purchase, or extensions of credit. The FYs 2022 and 2021, FV net gain of $0.7 billion and $3.8 

billion, respectively, from these investments is included in Treasury’s net cost. See also Note 7—Investments. 

Treasury’s COVID-19 appropriations provided funding for a variety of emergency relief programs. The state, local, 

territorial, and tribal programs provided payments to cover eligible costs incurred in response to the pandemic through 

several funds including: 1) SLFRF; 2) ERA; and 3) HAF. During FY 2022 and FY 2021, Treasury disbursed an aggregate of 

$125.8 billion and $277.7 billion, respectively, in appropriated and obligated funds to states, local, territorial, and tribal 

governments related to the programs discussed above to cover eligible costs that recipients incurred in response to the 

pandemic. Of the aggregate amounts disbursed, Treasury initially recorded $115.8 billion and $276.7 billion as an advance 

during FY 2022 and FY 2021, respectively, within the line “Advances and Prepayments”, and recorded the remaining $10.0 

billion and $1.0 billion disbursed in FY 2022 and FY 2021, respectively, as costs. Treasury subsequently recognized $146.6 

billion and $89.5 billion of this advance as an expense for the fiscal years ended September 30, 2022 and 2021, respectively, 

to reflect the estimated amount of eligible costs incurred during those years by recipients. Two other Treasury COVID-19 

programs include the American Industry and Financial Markets programs provided financial assistance payments to 

passenger air carriers and contractors to provide payroll support to aviation workers during the pandemic and the CDFI 

programs provided immediate assistance and quick deployment of capital to specialized organizations that provide services to 

low-income communities and those that lack access to financing. Treasury’s net costs related to COVID-19 activity totaled 

$164.4 billion and $110.2 billion in FY 2022 and FY 2021, respectively. The increase in Treasury’s COVID-19 net costs is 

mainly due to the expense recognition of support to state, local, territorial, and tribal programs. See also Note 9—Advances 

and Prepayments and Note 20—Commitments. 

Treasury’s taxpayer support programs provided a refundable tax credit (recovery rebate), referred to as an EIP and other 

taxpayer support programs to eligible recipients in every state and territory and at foreign addresses. Refunds of federal taxes 

and other payments and individual and other tax credits in FY 2022 and FY 2021 (related to the CARES Act, CAA, and 

ARP) totaled $13.1 billion and $569.5 billion, respectively, to eligible taxpayers. It should be noted that these credits are 

included in net costs in addition to the $164.4 billion and $110.2 billion, respectively noted in the previous paragraph. The 

financial statements impact of these and other programs can be found within Note 19—Collections and Refunds of Federal 

Revenue and Note 27—Disclosure Entities and Related Parties. 

HHS’s COVID-19 appropriations provided support testing, contact tracing, containment, mitigation to monitor and 

suppress the spread of COVID-19, as well as support COVID-19 vaccination programs and addressing disparities in 

obtaining quality healthcare. Certain programs also assisted households with paying for drinking water and wastewater 

services, as well as provide direct payment to participating eligible pharmacies and healthcare providers for up to eight free 

over-the-counter COVID-19 tests. Funding provided broad support including payments to assist eligible health care providers 

for health care related expenses or lost revenues attributed to the COVID-19 pandemic. In addition, HHS’s advances and 

prepayments primarily represent payments made for the COVID-19 Accelerate and Advance Payments program which was 

recorded as an advance on the Balance Sheet of $1.3 billion and $67.0 billion as of September 30, 2022, and 2021. The 

financial statements impact of the advance can be found within Note 9—Advances and Prepayments. HHS’ net cost for 

operations other than CMS increased by $41.0 billion during FY 2022 primarily due to the Public Health and Social Services 
171 NOTES TO THE FINANCIAL STATEMENTS 

Emergency Fund. HHS’s outlays related to COVID-19 activity totaled $130.1 billion and $89.7 billion in FY 2022 and FY 

2021, respectively. 

Education’s COVID-19 appropriations provided funding for a variety of programs administered primarily through grant 

programs. The COVID-19 relief legislation and administrative actions also provided support for student loan borrowers 

primarily by temporarily suspending nearly all federal loan payments. These COVID-19 loan modifications are a component 

of subsidy expense, which reduced the overall loan receivable balances. The significant financial statements impact of these 

programs can be found within Note 4—Loans Receivable, Net and Loan Guarantee Liabilities. Education’s outlays related to 

COVID-19 activity totaled $80.2 billion and $48.7 billion in FY 2022 and FY 2021, respectively. The increase in Education’s 

COVID-19 costs is due to loan modifications, reestimates (subsidy expense), and grant expenses. 

Several DOT programs received COVID-19 appropriations in support of maintaining and continuing the operations and 

business needs of various transportation systems in response to COVID-19. These programs include the Federal Transit 

Administration’s Transit Infrastructure Grants, the Federal Aviation Administration’s Grants-In-Aid for Airports and Airport 

Relief Grants, FHWA’s Highway Infrastructure programs, Federal Railroad Administration’s Grants to Amtrak, and Office 

of the Secretary’s Aviation Manufacturing Jobs Protection program. DOT’s net costs related to COVID-19 activity totaled 

$32.1 billion and $23.5 billion in FY 2022 and FY 2021, respectively. 

USDA’s COVID-19 appropriations provided funding and extended various programs and activities. It extended 

modifications to federal nutrition assistance programs for children, pregnant women, and older adults. As well as provided 

funding for programs to support agricultural producers, growers, and processors. USDA’s net costs related to COVID-19 

activity totaled $27.2 billion and $77.0 billion in FY 2022 and FY 2021, respectively. The decrease in USDA’s COVID-19 

costs is due to less spending in pandemic related programs. 

SBA provided emergency and immediate economic relief and assistance through disaster response programs, funded by 

COVID-19 appropriations. These programs include: 1) PPP; 2) CARES Act Debt Relief Program; 3) EIDL Grants; 4) the 

Business Loan Fee Waiver and Debt Relief program; 5) the Targeted EIDL and Supplemental EIDL Advance programs; 6) 

the Restaurant Revitalization program; 7) the Shuttered Venue Operators Grants program; and 8) the Community Navigator 

Pilot program. SBA’s outlays related to COVID-19 activity totaled $23.7 billion and $345.9 billion in FY 2022 and FY 2021, 

respectively. The decrease in SBA’s COVID-19 outlays is due to COVID-19 program applications closing, programs 

expiring, and program applications no longer being accepted. 

DHS’s COVID-19 appropriations supported DHS components by providing funding to several programs which 

included the expansion of medical support, provided COVID-19 test kits, developed assessments for risk management 

efforts, research and development, disaster relief, and the analysis for national threats and hazards. DHS’s outlays related to

COVID-19 activity totaled $20.3 billion and $33.9 billion in FY 2022 and FY 2021, respectively. 

DOL’s COVID-19 appropriations provided funding for several unemployment programs. DOL has spent approximately 

$10.7 billion and $332.9 billion, respectively, on COVID-19 relief in FY 2022 and FY 2021. The decrease in DOL’s 

COVID-19 related spending is due to the decreases in unemployment benefits. DOL’s net costs for COVID-19 programs for 

the year ended September 30, 2022, and 2021, was $9.7 billion and $313.0 billion, comprised mostly of unemployment 

benefits expenses for programs implemented in FY 2020 and ending in FY 2021.