Schneider Urges Treasury to Help Local Governments by Promptly Issuing Guidance, Disbursing Coronavirus Aid Funds to States

Today, Congressman Brad Schneider (D-IL) urged the U.S. Treasury to help struggling local governments by promptly finalizing guidance and beginning to disburse funds authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act to states as soon as possible. The CARES Act does not allow for localities with populations under 500,000 to receive stabilization funds directly and instead states will need to issue sub-grants to meet the needs of smaller communities.

"Our state and local governments are on the frontlines of the coronavirus crisis, providing vital services on the ground to our communities," said Schneider. "The CARES Act authorized more than $150 billion to help meet their needs, but the legislation relies on our states to distribute the funding to smaller units of local government. Our state leaders urgently need communication, clarity, and guidance from Treasury to effectively plan and inform our localities of the help that is in the pipeline. The coronavirus knows no boundaries, and we cannot allow a slow federal response to leave our smaller municipalities and local governments behind."

In the letter to Secretary Mnuchin, Schneider also urges Treasury to define the term "necessary expenditures" as broadly as possible to assure that local governments are fully empowered in how they use their allocated funds.

Yesterday, Schneider joined with more than 120 bipartisan colleagues in a separate letter to Speaker Pelosi urging that future COVID-19 relief packages include direct funding for localities with populations under 500,000, or to lower the threshold for direct funding through the Coronavirus Relief Fund.

Full Schneider letter text:

April 3, 2020

Dear Secretary Mnuchin:

I write to you on behalf of the state and local governments around the country that are facing unprecedented fiscal pressures due to the outbreak of novel Coronavirus (COVID-19). I urge you to expeditiously issue guidance per Sec. 5001 of P.L. 116-136, the Coronavirus Aid, Relief and Economic Security (CARES) Act, that will ensure states can most effectively make subgrants to smaller units of government within their state. I also ask that you define the term "necessary expenditures" as broadly as possible to assure that local governments are fully empowered in how they use their allocated funds.

As you are aware, the CARES Act included $150 billion for state and local governments. States, counties, and municipalities throughout the country are anxiously waiting on these funds to help navigate this ever-expanding public health crisis. Treasury's fast disbursal of funding from the Coronavirus Relief Fund will promptly help alleviate the difficulties these communities are facing.

I understand the Department of the Treasury is actively working to finalize guidance and appreciate your diligence in completing your work as soon as possible. Our state and local governments are on the frontlines, providing vital services on the ground to their respective communities. We must support them, especially smaller communities, during this difficult time.

Thank you again for your timely consideration of this request. I look forward to continuing to work together to ensure our states, and the communities that comprise them, have the resources they need to survive this crisis and soon transition to a robust recovery.

Sincerely,

Bradley S. Schneider

Member of Congress