Mayors and county officials on Thursday said the direct federal aid that’s part of the Biden administration’s emergency coronavirus relief proposal should go to even the smallest jurisdictions, which have so far been left out of relief spending officials say is urgently needed.
Only 38 of the nation’s cities have received direct federal aid from the multi-trillion dollar packages approved by Congress last year, according to U.S. Conference of Mayors President Nan Whaley.
Officials from the National League of Cities and the National Association of Counties joined Whaley in advocating for quick enactment of the $1.9 trillion plan which includes $350 billion for state and local governments.
The direct aid would be only about one-third of the $900 for state and local governments that the House passed last year and the Senate blocked.
Whaley, who is the mayor of Dayton, Ohio said she “enthusiastically” supports the smaller amount of direct federal aid because it’s “a rescue package” covering immediate need. She said cities will expect a “relief package” later this year.
Senate and House Democrats are preparing budget resolutions that would enable the Senate to approve the plan without Republican support.
Senate Majority Leader Chuck Schumer, D-N.Y., said Thursday, “Our preference is to make this important work bipartisan—to include input, ideas, and revisions from our Republican colleagues, or bipartisan efforts to do the same.”
“But if our Republican colleagues decide to oppose this urgent and necessary legislation, we will have to move forward without them,” Schumer said.
Democrats said the report released by the Commerce Department Thursday that the economic growth slowed in the fourth quarter highlights the need for more federal stimulus.
The 4% growth in the fourth quarter was not enough to prevent the economy from shrinking by 3.5% in 2020, making it the worst year for the nation since 1946.
House Ways and Means Committee Chairman Richard Neal, D-Mass., said the relief programs passed Congres in 2020 “likely prevented an even sharper, immediate decline in personal income last year.”
“We must learn from the lessons of 2020 and pass additional, big relief legislation as soon as possible,” said Neal. “Failing to act, or doing too little, will only set our economy, workers, and families up for greater hardship in both the near- and long-term future.”
Schumer has proposed legislation co-authored by Sen. Kirsten Gillibrand, D-N.Y., that would divvy up the local relief fund into a 50/50 split with half committed to cities, towns, and villages, and half committed to counties.
Their Direct Support for Communities Act would allocate 70% of the local aid for distribution through the federal Community Development Block Grant program and 30% for distribution by the states within 30 days to communities not entitled to CDBG funding.
The mayors and county officials who joined Whaley Thursday in calling for congressional action emphasized the need for quick passage.
Clark County, Nev., which includes the city of Las Vegas, is facing a $1.2 billion shortfall after having already spent all of its $374 million in reserves, according to County Commission Chair Marilyn Kirkpatrick.
“We couldn't wait,” Kirkpatrick said. “People were out of jobs. Folks did not have food. They didn't have gas to get anywhere. They had no daycare. So it really has taken a toll on us on the local government side.”
Clark County already has spent $130 million on rental assistance, Kirkpatrick said. “And we still have 19,000 people that could face eviction on March 1.”
Congress recently approved $25 billion for housing authorities to prevent evictions but the local officials emphasized the need for aid to local governments of all sizes.
Mayor Vince Williams of Union City, Ga. who is the first vice president of the National League of Cities, said Congress should include “every local government with no minimum population threshold for eligibility.”
Congress also should use “familiar and proven government revenue sharing programs such as Community Development Block Grants,” Williams said.
The mayors and county officials also want to avoid mixing federal funding for states with allocations for local and county governments, as was done last year.
The officials also want to be able to use federal funds to cover their revenue shortfalls that were caused by the pandemic.
