This study aims to examine how changes in external guidelines and government funding affected resource allocation within elderly care during the COVID-19 pandemic, as well as to understand the managers' strategies and the staff's experiences of resource distribution during this period. An abductive research approach has been applied and data was collected through qualitative, semi-structured interviews with eight representatives, including financial managers within Halmstad Municipality, as well as managers and staff within elderly care. The results show that the pandemic placed high demands on rapid adjustment and flexibility in budget work, as previous years' budgets could no longer be used as a basis. The state contributed with extra financial support, which enabled urgent purchases and strengthening of the workforce. The structure and routines of the operations were also clearly influenced by the external guidelines from, among others, the Public Health Agency of Sweden and the National Board of Health and Welfare. This led to isomorphic changes, where operations began to act in similar ways. Staff experienced increased workloads, longer working hours, and stress due to staffing shortages and new protective routines. The conclusion is that government support and more flexible financial management played an important role during the crisis. But both institutional inertia and rapid regulatory changes affected the organizations' ability to adapt. For future crises, increased preparedness is needed, such as a crisis reserve and clear strategies for rapid resource allocation, in order to maintain good quality in the work and at the same time take care of the staff.