DOF Notifies Legislature of $1.8 Billion Transfer to Support COVID-19 Response

Late Thursday, the Department of Finance (DOF) notified Senate and Assembly budget and appropriations committee chairs of the Newsom Administration’s intent to transfer $1.831 billion to the Disaster Response-Emergency Operations Account (DREOA) to support the state’s ongoing response efforts to COVID-19 through the end of the fiscal year on June 30, 2020. DOF details allocations of the $1.831 billion transfer as follows:

• $1.3 billion for procurement of personal protective equipment (PPE), including masks, medical equipment, gloves, and gowns.
• $251.7 million for hospital and medical surge to establish and support over 3,000 beds.
• $30 million for hotels for healthcare workers and staff who care for or come into contact with COVID-19 patients in the medical system and who cannot self-isolate at home. These frontline workers will be provided free or low-cost hotel accommodations.
• $159.4 million for state response operations and other support activities, including the general public call center.
• $98.4 million for testing and contact tracing activities being ramped up statewide.

DOF further indicates that it anticipates federal FEMA reimbursement of approximately 75 percent. In its letter to legislative leaders, DOF also discusses anticipated expenditures identified through the May Revision, including $500 million for PPE procurement, $347.2 million for additional hospital and medical surge, $50 million for food purchases and food bank supports, $17.3 million for the general public call center, and $575 million to support statewide testing and contact tracing.

DOF’s full letter is available here.