The CARES Act is very specific about the use of the funds. They must be used “to prevent, prepare for, and respond to coronavirus, domestically or internationally, for the 2020 Federal election cycle.” The award instructions and EAC’s Guidance on Use of HAVA Funds for Expenses Related to COVID-19 provide many examples and answer questions about the use of CARES Act and other HAVA funds to address the pandemic. See the EAC website for the guidance at: https://www.eac.gov/electionofficials/guidance-use-hava-funds-expenses-related-covid-19.

HAVA, in Section 101(b)(2), specifically states that 101 funds cannot be used to pay costs associated with any litigation, except to the extent that such costs otherwise constitute permitted uses of a payment under this section. Therefore, they cannot be used to cover the costs of a lawsuit brought against an action the state takes such as moving a primary or changing voting processes. However, if the litigation pertained to a state's actions to mitigate the effects of the pandemic on federal elections and the litigation resulted in a judgement or order requiring the state to implement certain changes in their administration of those elections, the funds could be used to carry out those required changes

Insurance (including cyber insurance) is an allowable expense per HAVA 101(b)(1)(B) and 2 CFR §200.447. Costs must be allocated based on the benefit to the improvement of the administration of elections for Federal Office, per 2 CFR § 200.405 and HAVA 101(b)(1)(B). An allocation methodology representative to the benefit of federal elections should be included when allowing and allocating cyber insurance costs. An expenditure for cyber insurance should follow the limitations set by §200.447 as well as general allocation principles for HAVA grants. 

For additional guidance on insurance please see the FAQ titled “May a state use HAVA funds to lease or purchase buildings or equipment?”