NLC Responds to Misleading Claims on Federal Aid Available to Local Governments

August 3, 2020

Washington, D.C. – Yesterday, members of the Trump Administration and Senate Majority Leader Mitch McConnell publicly claimed that more than $100 billion in CARES Act funding was still left for local governments to address ongoing budgetary challenges resulting from the nationwide shutdown in response to the COVID-19 pandemic. White House Chief of Staff Mark Meadows claimed that there is still “over $100 billion available for state and local” governments, while Leader McConnell said that “the 150 billion already sent to state and local governments hasn’t been used by most states.” In response, National League of Cities (NLC) Executive Director Clarence Anthony issued the following statement:

“The CARES Act funding is woefully insufficient to put our economy back on the road to recovery, most of that funding has already been obligated and small cities and rural areas have been left out entirely. In fact, 70 percent of CARES Act funds allocated to state and local governments has already been obligated through the end of the year, with only 10 percent going toward aid for local governments.

“Since the beginning, small cities and rural areas have been completely shut out from receiving federal aid, and without any commitment of economic relief from the federal government, they are at serious risk of having their local economies wiped out.

“If Congress fails to come to terms with the dire budgetary realities that local governments are facing, it will undermine our efforts to revitalize the national economy and create an economic ripple effect that will be felt by our communities for years to come.”

For additional background information, read NLC’s latest CitiesSpeak blog post outlining why few unobligated dollars remain for cities and towns waiting for aid.

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The National League of Cities (NLC) is the voice of America’s cities, towns and villages, representing more than 200 million people. NLC works to strengthen local leadership, influence federal policy and drive innovative solutions. Stay connected with NLC on FacebookTwitterLinkedIn and Instagram.