New Virus Relief Proposal Includes Less Aid for States and Localities

Brian Skinner COVID-19, Local Government, State Fiscal & Economic Policy

Speaker Pelosi

 

Route Fifty — By Bill Lucia — September 29, 2020 

State and local governments would see a combined $417 billion in direct federal aid under an updated coronavirus relief proposal that House Democrats revealed on Monday, a sum that is well short of the amount included in an earlier version of the plan, but that also might be more palatable to Republicans so far skeptical of doling out more assistance to them.

House Democrats in May passed the Heroes Act, which included $875 billion in emergency assistance to states and local governments to help them cover costs related to the virus and to backfill lost budget revenues. But that legislation, and the prospect of funneling that much money to states, counties and cities, has proven to be a nonstarter with Republicans, who control the Senate.

Talks between the two sides over a relief package stalled out in recent weeks, but are now being rekindled with discussions between White House officials and Democrats.

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