Week Ending August 21, 2020

Still No Action on Further Pandemic Relief

• Why is Congress Waiting to Provide Fiscal Relief for State and Local Services?
• House Democrats Will Vote to Protect Postal Service Operations on August 22

Why is Congress Waiting to Provide Fiscal Relief for State and Local Services?

Still no deal has been reached between the Congress, the White House negotiators and the GOP on any further COVID-19 pandemic relief, despite the increasing need for additional federal support to respond to the worsening public health crisis and deteriorating fiscal conditions at the national, state and local levels. Without substantial relief, states, localities and school districts face dire conditions, including more layoffs, greater reductions in vital public services and even bigger obstacles to respond to the ongoing pandemic health crisis.

Although the House of Representatives acted more than three months ago, the Senate has done nothing. The House-passed Heroes Act (H.R. 6800) provides more than $1.2 trillion to states and local governments and school districts, increases Medicaid payments to states and protects workers on the front lines. It also gives front-line workers premium pay, needed unemployment and food assistance and subsidizes 100% of the cost of COBRA health care for those who have lost their jobs, but the bill continues to languish in the Senate, which is in recess until September.

• Maintaining State and Local Services is Imperative: Without substantial federal assistance, states, cities, towns and school districts cannot provide vital services, fight the coronavirus, or help re-open our economy. Federal support to states, cities and towns is essential for maintaining the public services that communities depend on, including public safety, health care, schools and sanitation. Without assistance there will be more cuts in critical services and layoffs of millions of workers, many of whom are on the front lines and still fighting the pandemic. Functioning public services such as health care and transportation will make it possible to safely re-open our economy, help businesses, and get people back to work.
• Economic Stability for All is at Risk: National, state and local economies are all connected. Denying aid will force devastating cuts in food assistance, unemployment benefits, health coverage and other supports for struggling families, while they still need help. We need public services like health care, education and transportation to function in order to support the economy. House Budget Committee Chairman John Yarmuth (D-Ky.) released a new report on the dire need for at least $900 billion in state and local assistance, which covers the cause of the crisis and explains the threat to economic recovery if nothing is done.
• Pandemic Fight is Dependent on Aid: Federal support for state and local services is needed because of the coronavirus pandemic and the financial crisis it caused. All American communities – big cities and small towns, rural and urban, “blue states” and “red states” – need assistance to maintain vital services. As a direct result of the pandemic, states and communities have seen a huge reduction in revenues, while costs like unemployment insurance and health care have skyrocketed. Federal assistance is a direct response to the pandemic, which is why it has the support of mayors and governors of both political parties.
• Bankruptcy Should NOT be an Option: Do not get sidetracked by misguided issues. It is irresponsible and wrong to suggest states can simply file for bankruptcy. It’s not about pensions or fiscal management. No one should exploit this crisis to advance a political agenda. All states and communities have been hurt by the pandemic and the shutdown, and we should respond as Americans by taking bipartisan action to save jobs, maintain essential services and safely reopen our economy.

What You Need to Know: The Senate must act as soon as possible and pass a plan that provides at least $1 trillion in direct, flexible aid to state and local governments, increases funding for Medicaid, and provides additional support for schools to ensure safety and to meet the needs of students learning remotely. It’s not an option to allow more Americans to lose their jobs and essential public services to be shut down. Communities can’t afford to wait. Congress must fund the front lines immediately.