Report: State and Local Governments Left Out of New Federal Aid Package

Congress is reportedly close to finalizing a new COVID-19 aid package of up to $450 billion, but state and local governments are left out.

CoronaVirusCongress and the Trump administration are racing to finalize a new deal that would provide $450 billion in emergency coronavirus-related funding, with passage expected in the coming days.

The package provides $300 billion for the small-business payroll program, $50 billion for a small business disaster fund, $75 billion for hospitals, and $25 billion for coronavirus testing.

Democrats are pushing to include much-needed aid for state and local governments, but U.S. Senate Majority Leader Mitch McConnell and Treasury Secretary Steven Mnuchin said that relief for state and local governments will have to wait until the next round of aid.

According to CBS News:

But Mnuchin and McConnell reiterated on the call with senators that money for state and local governments as well as food stamps wouldn’t be included in the package, according to the GOP aide.

“The president is willing to consider that in the next bill, but wants to get this over the finish line with a focus on small businesses, hospitals and testing,” Mnuchin said.

As counties work to protect their residents, local businesses, and economies from the detrimental effects of the COVID-19 pandemic, they are making significant financial investments to address immediate public health and safety needs. At the same time, counties are experiencing massive and unprecedented declines in revenue as a result of the economic downturn.

As previously reported on Conduit Street, the National Association of Counties last week submitted a letter to the U.S. House Speaker and Minority Leader, expressing the urgency of front line funding to county governments in any developing aid package. MACo joined over 40 state county associations in co-signing the letter.

For continuing coverage, visit NACo’s dynamic COVID-19 resource page, and stay tuned to Conduit Street.

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Previous Conduit Street Coverage: Counties to Congress: Help Needed Here, On Front Lines

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