The Senate passed a $483.4 billion economic relief measure on Tuesday that would replenish the Paycheck Protection Program (PPP), which ran out of funding last week, and provide additional funding to hospitals facing financial shortfalls due to COVID-19. The bill will be voted on in the House today, April 23. The bill does not include funding for states and localities, but the Trump Administration has said that more funding for local governments could be included in the next round of relief aid.
On Wednesday House Speaker Nancy Pelosi
the next round of relief needs to focus on state and local governments. Calling upcoming legislation the “Heroes Act,” Pelosi said “we (need) this assistance to state, county and local government, and to do so in a significant way. To recognize the lost revenue that they have from a lack of a stream of revenue because of the economy, and secondly the outlays that they make in order to address the coronavirus tragedy.”
Senate Majority Leader Mitch McConnell said yesterday he “would certainly be in favor of allowing states to use the bankruptcy route” to deal with unbalanced budgets due to coronavirus and decreased revenues. He also said further relief funding legislation will have to wait until lawmakers return to Washington (the week of May 4, at the earliest). "I think the next debate, which I assume will relate to state and local government relief, needs to be when the Senate is back in session with full participation.” Senate Minority Leader Chuck Schumer Tweeted in response, “
Our states are united. America's governors—Democrats and Republicans—are demanding help. Firefighters, police, sanitation workers, teachers, and more will be laid off if you ignore them. Stop being political. Wake up to the problem.” In addition, President Trump tweeted earlier this week that, “
After I sign this Bill, we will begin discussions on the next Legislative Initiative with fiscal relief…to State/Local Governments for lost revenues from COVID 19, much needed Infrastructure Investments for Bridges, Tunnels, Broadband, Tax Incentives for Restaurants, Entertainment, Sports, and Payroll Tax Cuts to increase Economic Growth.”
, Treasury Secretary Steve Mnuchin said earlier this week he supports looking at providing support to states and local governments as part of the next round of relief efforts. Mnuchin has also
that the Administration is “sensitive to the economic impacts of putting on debt,” in the face of future economic relief packages.
The House is expected to vote today on the new House Oversight Select Investigative Subcommittee called the “
Select Subcommittee on the Coronavirus Crisis
,” which will be chaired by House Majority Whip Jim Clyburn (D-SC).
Speaker Pelosi is letting go of a plan that would have amended House rules to allow remote voting and committee work during the extent of the pandemic. House Majority Leader Hoyer (D-MD) previously
on Congress to identify secure ways to conduct committee working and voting remotely, while House Republican Leader McCarthy (R-CA)
strong opposition to such changes.
The Senate Environment and Public Work Committee (EPW) is
an “Information-Gathering Process” on draft water infrastructure legislation. Commentators told the Committee that more funding is needed than is currently included in draft legislation, especially for water agencies due to the coronavirus pandemic. Diane VanDe Hei, CEO of the Association of Metropolitan Water Agencies
the pandemic has already devastated drinking water systems and is projected to reduce total revenue by $13.9 billion. VanDe Hei noted nearly $5 billion of that sum will come from losses from increased customer delinquencies, with an additional $500 million reduction coming from utilities that decided to halt water service shutoffs for nonpayment during the public health emergency. All stakeholders are invited to provide written comments on the legislation, which will be accepted until Friday, May 1 at 4:00 p.m. ET, and should be emailed to
Bills and Letters of Interest
- Rep. Doggett (D-TX) letter urging the importance of the maintenance of effort provisions included in the Families First Coronavirus Response Act to protect Medicaid coverage for families.
- Sens. Rosen (D-NV) and Wyden (D-OR) letter requesting that state-legal and indirect cannabis small businesses are allowed access to SBA emergency loan and grant programs.
- Sens. Brown (D-OH) and Portman (R-OH) sent a letter to Treasury Secretary Mnuchin seeking guidance on how state and local governments can use funds from the Coronavirus Relief Fund.
- Coronavirus Relief for States Act, introduced by Reps. Perlmutter (D-CO) and Morelle (D-NY).
- Undertaking National Initiatives to Tackle Epidemic Act (UNITE Act), introduced by Rep. Garamendi (D-CA).
Yesterday the Treasury Department published
for state, territorial, local, and tribal governments on the use of funds under the Coronavirus Relief Fund. The final guidance clarifies that the Fund may only be used to cover costs that are necessary expenditures incurred from March 1 to December 30, 2020 with respect to the pandemic; and were not accounted for in the budget most recently approved as of March 27 for the state or government. The Guidance clarifies the Fund may not be used to cover lost revenue. Treasury also published a
document on the guidance, which explains that “States receiving a payment [may] transfer funds to a local government [with populations under 500,000], provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria.”
The Centers of Medicare and Medicaid Services (CMS) and the Assistant Secretary of Preparedness and Response (ASPR) released the
COVID-19 Healthcare Workforce Toolkit
to help state and local healthcare decision makers maximize workforce flexibilities when facing the pandemic. CMS also released
on additional blanket waivers for long-term care hospitals, rural health clinics, federally qualified health centers, and intermediate care facilities.
The National Governors Association sent a
to congressional leadership outlining their requests and priorities for states and local governments in the next relief package.
The Association of California Water Agencies (ACWA) sent a
to House and Senate leadership requesting that forthcoming COVID-19 relief bills address the needs of local government agencies, including special districts and cities.
The seven state and local government organizations, including ICMA, NACo, USCM, and NGA, sent a
to Congress calling that immediate relief to state, territorial, and local governments be included as part of a COVID-19 relief package.