Trump Signs Coronavirus Aid Package—But Democrats Say More Help Needed for States and Cities

House Speaker Nancy Pelosi, accompanied by House Minority Leader Kevin McCarthy, and other legislators, participate in a bill enrollment ceremony for the CARES Act, after it passed in the House, on Capitol Hill, Friday, March 27, 2020 in Washington.

House Speaker Nancy Pelosi, accompanied by House Minority Leader Kevin McCarthy, and other legislators, participate in a bill enrollment ceremony for the CARES Act, after it passed in the House, on Capitol Hill, Friday, March 27, 2020 in Washington. AP Photo/Andrew Harnik

 

Connecting state and local government leaders

The House approved the Coronavirus Aid, Relief, and Economic Security Act on Friday and President Trump later signed the measure into law. But lawmakers said they expect to address the growing financial needs of local governments in a fourth bill.

President Trump on Friday signed the historic $2 trillion economic relief package meant to provide funding for hospitals, businesses, and state and local governments financially affected by the coronavirus pandemic.

The wide-ranging bill is the largest emergency aid package ever passed by Congress, but as they passed the measure House Democratic leaders said more money will be necessary to fully address the economic crisis brought on by the outbreak and indicated they intend to pursue additional funding for state and local governments in a subsequent bill.

Included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act is $290 billion to cover direct payments of $1,200 to many American taxpayers, $260 billion to expand unemployment benefits, $180 billion in hospital and healthcare related spending, as well as $510 billion for loan and loan guarantees for businesses and state and local governments. The measure also includes an additional $150 billion that provides direct aid to state and local governments.

Out of the $150 billion economic stabilization fund for state and local governments, states are guaranteed at least $1.25 billion each though some states will receive far more. A breakdown by the National Conference of State Legislatures shows California, Texas, Florida and New York will get the most money, with each receiving between $15 billion and $7.5 billion.

Ahead of Friday’s vote, House Speaker Nancy Pelosi said lawmakers would aim to address known shortfalls in a fourth bill to be taken up at a later time.

“We know we must do more. We know that this cannot be our final bill,” Pelosi, a California Democrat, said on the House floor. “For our fight against the coronavirus our state and local governments will need vastly more support for preventing and caring for and responding to the crisis.”

Economists and budget officers have warned that state and local governments are currently absorbing the brunt of the costs associated with responding to the outbreak.

In addition to spending more during the outbreak to fund unemployment or to purchase personal protective equipment, state and local governments will also eventually face reduced tax revenues along with the economic downturn, as personal income taxes and sales taxes decline.

The $150 billion for state and local governments will likely not be enough to close the expected gap in lost revenue, said Tim Bartik, a senior economist with the W.E. Upjohn Institute for Employment Research.

“Own-source general revenue for state/locals is about $2.4 trillion annually. If this declines by 10% then the revenue hole is $240B,” Bartik wrote on Twitter.

In addition to added expenditures, he estimated state and local governments could easily need $400 billion to cover annual expenses.

Economists at the Economic Policy Institute similarly said state and local governments “will clearly need substantially more federal support to avoid being a drag on recovery later in the year.”

The needs of state governments will vary depending on the extent of infection in their communities, as well as the impacts the outbreak has on prominent industries in their region. Because of this, federal aid would be most useful if state and local governments are given flexibility to use federal dollars that have already been appropriated, wrote Brookings Institution economists this week. They advocated for the federal government to provide more funding through community block grant programs or by picking up the entire tab for Medicaid expenditures for the duration of the pandemic.

The coronavirus aid package is the third bill passed by Congress in response to the growing pandemic.

OTHER STORIES on Route Fifty:

Andrea Noble is a staff correspondent with Route Fifty.

NEXT STORY: California, New York Extend Mortgage Relief to Homeowners

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.