Cash Management Improvement Act (CMIA)
Why enact CMIA?
The Cash Management Improvement Act of 1990 (CMIA) was passed to improve the transfer of Federal funds between the Federal Government and the States, Territories, and the District of Columbia.
What were the key issues?
Specifically, two recurrent intergovernmental problems needed attention:
Who is covered?
The program applies to the 50 States, the District of Columbia, and the Territories of American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands. The term "State" will be used hereafter to refer to these 56 entities.
What is covered?
All Federal funds transfers to the States are covered. However, only major assistance programs (large-dollar programs) are included in a written Treasury-State Agreement (TSA), which specifies how the Federal funds transfers will take place. In FY 1994, the first year of CMIA, 20 major programs were covered under TSAs. Today, more than 100 different Federal programs are included in TSAs with an average of approximately 20-25 programs per State.
What are CMIA's objectives?
(1) Efficiency -- To minimize the time between the transfer of funds to the States and the payout for program purposes.
What are the key components of CMIA?
What are future plans?
Are State Fiscal Relief Payments made under Section 401(b) of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (Act) covered under the Cash Management Improvement Act (CMIA)?
No. The purpose of the payments made under Section 401(b) of the Act is to provide temporary fiscal relief to States. Under Treasury regulations, CMIA applies to the transfer of funds between the Federal Government and States for Federal assistance programs included in the Catalog of Federal Domestic Assistance (CFDA). Payments made under Section 401(b) are not a made under a program included in the CFDA.