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Posted on: April 1, 2020

Urgent Effort: Securing Fedal Funding of all NJ Municipalities

Our partners at the National League of Cities (NLC) have launched an effort to secure CARES Act funding for all COVID-19 impacted municipalities, regardless of size.  NLC Executive Director Clarence Anthony has written to U.S. Treasurer Steve Mnuchin, requesting a favorable interpretation of the new law.

Should the Treasurer fail to provide a timely and favorable interpretation, legislative action will be needed. And your action can help to make that a reality. Please consider the following:

Congress Members who represent municipalities under the 500,000 population threshold can sign on to a (Letter to Speaker Pelosi) authored by two of their colleagues.

Time is of the essence. Please urge your member of Congress to sign the letter by filling out this form by COB Wednesday, April 1.  

Our partners at the National League of Cities (NLC) have launched an effort to secure CARES Act funding for all COVID-19 impacted municipalities, regardless of size.  NLC Executive Director Clarence Anthony has written to U.S. Treasurer Steve Mnuchin, requesting a favorable interpretation of the new law.

Specifically, Section 601(d), provides:

“A State, Tribal government, and unit of local government shall use the funds provided under a payment made under this section to cover only those costs of the State, Tribal government, or unit of local government that— 

(1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19);

And, Section 601(g)(2) of the CARES Ac states:

“LOCAL GOVERNMENT—The term ‘unit of local government’ means a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level with a population that exceeds 500,000.”

The particular issue is whether the prepositional phrase “with a population that exceeds 500,000” modifies all the political subdivisions listed (a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level) or modifies only the political subdivision immediately preceding it, “other unit of general government below the State level”.

 

The issue is important because it determines which political subdivisions are entitled to receive direct funding under the Coronavirus Relief Fund in Section 601.


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