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Federal Government

Posted on: December 18, 2020

State and Local Aid Excluded From COVID Relief Legislation

Congress continues to negotiate the details of a $900 billion COVID relief package, which will be attached to the $1.4 trillion omnibus spending package that funds the government through September. The current funding bill expires at midnight tonight and given the time and lack of agreement, a brief government shutdown may occur.

Aid to state and local governments is currently not included in the bill. Among the remaining sticking points are FEMA funding, which some senators view as backdoor funding for state and local governments, and efforts to limit the Federal Reserve’s ability to restart pandemic relief.

The broad outline of the COVID relief bill includes $600 stimulus checks to many individuals, a $300 increase in weekly unemployment benefits, and $325 billion for small business relief.

Congress is expected to stay through the weekend to complete these critical funding measures. While disappointed in the lack of funding for state and local governments, we will continue to monitor and report as details emerge.

Contact: Paul Penna, Legislative Analyst, ppenna@njlm.org, 609 695-3481, x110.

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