News Flash

Home

Posted on: October 16, 2020

Hopes for Federal COVID Aid Package Dim ... Again

On Wednesday, Treasury Secretary Steve Mnuchin, the administration’s point person on COVID relief, stated, “At this point getting something done before the election and executing on that would be difficult, just given where we are in the level of details.”

In the past two weeks, President Trump first ordered his team to break off talks, then sent them back to the table, and finally called for a bigger bill than previously put forward. Recently, Senate Majority Leader Mitch McConnell stated he has no intention of accepting a deal that exceeds his previous, $500 billion, proposal. This latest news may not be the last we hear about this before Election Day. But it is no cause for optimism.

 We will continue to keep you posted on further developments. For now, we urge you to speak with your Federal Representatives. In addition to thanking them for their past support for direct aid to local governments, please remind them of these four principles: 

  1. Aid should be fair and appropriate funding for each and every local government, with no minimum population threshold for eligibility. Residents should not tolerate a preventable decline in local government operations as a result of being excluded from emergency federal aid.   
  2. Aid should be directly allocated through familiar and proven government revenue-sharing programs. Relying on a Community Development Block Grant (CDBG) framework would eliminate the time-consuming need to stand up a completely new administrative or regulatory framework, as was required by the Coronavirus Relief Fund (CRF). CDBG is also the most familiar revenue-sharing mechanism for states and localities operating at reduced capacities due to staff furloughs and layoffs. 
  3. Entanglement of state and local funding should be minimized. Unclear legislation and regulations burdened the CARES Act CRF from the start, resulting in confusion, delays, and infighting among primary and secondary grant recipients. Federal aid for states and localities should be allocated from three clearly set-aside funds for state government, municipal government, and county government. Overall federal aid for municipal governments and county governments should be provided at equal levels. 
  4. Eligible expenditures should be targeted to the widespread health and economic consequences of COVID-19, including unavoidable revenue shortfalls resulting from federal, state, and local measures to contain the spread of coronavirus. 

Contact: Jon Moran, Senior Legislative Analyst, jmoran@njlm.org, 609-695-3481 x121.

Facebook Twitter Email

Other News in Home

Gov. Murphy Signs Plastic Ban into Law

Posted on: November 11, 2020

2019 Senior Freeze Deadline Extended

Posted on: November 2, 2020

Hospital Propety Tax Bill Held from Vote

Posted on: November 2, 2020

Vegetation Management Bill Advances

Posted on: September 21, 2020

Hospital Property Tax Bill Advances

Posted on: September 21, 2020

Governor Takes Action on Bills

Posted on: September 21, 2020

MIllioniares' Tax to Bolster State Budget

Posted on: September 21, 2020

State Budget Deliberations Begin

Posted on: September 11, 2020

Final NJ Census Push in Full Swing

Posted on: September 9, 2020

Census 2020- Time Is Running Out

Posted on: September 8, 2020

Proposed Budget Holds ETR/CMPTRA Level

Posted on: August 25, 2020

Week of August 17: COVID-19 Update

Posted on: August 25, 2020

Local Aid Crucial for Economic Recovery

Posted on: August 25, 2020

Week of August 10: COVID-19 Update

Posted on: August 14, 2020

Time is Running Out for the 2020 Census

Posted on: August 14, 2020

Week of August 2: COVID-19 Update

Posted on: August 9, 2020

COVID-19 Research Volunteers Needed

Posted on: August 6, 2020

Storm Update from NJBPU

Posted on: August 5, 2020

Week of July 27: COVID-19 Update

Posted on: August 5, 2020

Week of July 13: COVID-19 Update

Posted on: July 19, 2020

Murphy Ok's COVID-19 Borrowing Bill

Posted on: July 19, 2020

Interim State Budget Enacted

Posted on: July 6, 2020

Bridge Budget Bill Introduced

Posted on: June 26, 2020

Week of June 8, 2020 Covid-19 Update

Posted on: June 12, 2020

Week of May 25: COVID-19 Update

Posted on: May 29, 2020

Week of May 18: COVID-19 Update

Posted on: May 22, 2020

State Budget Update

Posted on: May 22, 2020

Call for Federal Lifeline

Posted on: May 22, 2020

DEP Launches "Mask Up!" Campaign

Posted on: May 20, 2020

Week of May 11 COVID-19 Update

Posted on: May 15, 2020

HEROES Act Includes Hometown Help

Posted on: May 15, 2020

Week of May 4 COVID-19 Update

Posted on: May 8, 2020

Week of April 27 COVID-19 Roundup

Posted on: May 1, 2020

Gov. Murphy OK's May 2 Park Reopening

Posted on: April 30, 2020

Possible Help for Seasonal Businesses

Posted on: April 30, 2020

New Federal Help for Local Businesses

Posted on: April 29, 2020

Week of April 20 COVID-19 Update

Posted on: April 24, 2020

Week of April 12 COVID-19 Update

Posted on: April 17, 2020

ABC Extends Retail License Terms

Posted on: April 17, 2020

Congress Considers Local Aid Bills

Posted on: April 17, 2020

Primary Election Day Moved to July 7

Posted on: April 9, 2020

COVID-19 Rundown: Week of March 30

Posted on: April 3, 2020

April 1 Is Census Day

Posted on: April 1, 2020

CARES Bill Follow-up

Posted on: March 30, 2020

COVID-19 Update Week of March 22

Posted on: March 27, 2020

Federal CARES Act Analysis Continues

Posted on: March 27, 2020

CARES Act Preliminary Snapshot

Posted on: March 26, 2020

COVID-19: Free Informational Webinar

Posted on: March 24, 2020

State Freezes Spending

Posted on: March 25, 2020

March 23, 2020 Daily COVID-19 Update

Posted on: March 23, 2020

Governor Signs EO on Elections

Posted on: March 19, 2020

COVID-19 Bill Package

Posted on: March 15, 2020

Emergency Procurement Guidance

Posted on: March 15, 2020

March 13, 2020 COVID-19 Update

Posted on: March 13, 2020

State & Local COVID-19 Briefing

Posted on: March 10, 2020

Coronavirus Task Force Established

Posted on: February 11, 2020

Plastic Bag Ban Bill Advances

Posted on: January 31, 2020

Governor Delivers State of the State

Posted on: January 21, 2020

Lame Duck Roundup Week of January 13

Posted on: January 21, 2020

Treasury Funding Release Reported

Posted on: January 21, 2020

Gov. Approves Lead Service Line Bill

Posted on: January 10, 2020

Governor Signs Legislation

Posted on: January 10, 2020

DLGSA Extends CY 2020 Budget Deadlines

Posted on: January 3, 2020

Addressing a Toxic Culture

Posted on: January 3, 2020

Expungement Revisions Up for Final Vote

Posted on: December 13, 2019