WASHINGTON (AP) — The $2.2 trillion federal rescue package could fail to deliver badly needed financial aid to thousands of smaller cities and counties where a majority of Americans live, according to documents and interviews with local officials.

The coronavirus outbreak has blown holes in the budgets of communities as the costs of battling it skyrocket and critical sources of revenue like sales and income taxes plummet.

The Coronavirus Relief Fund uses a formula based on population to parcel out tens of billions of dollars to the states while allowing cities and counties with more than 500,000 residents to apply directly to the Treasury Department for cash infusions. But localities below that population threshold are in limbo.

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