As the United States Senate begins work on the House-passed “One, Big, Beautiful Bill Act” (H.R. 1), the National League of Cities (NLC) sent a letter (PDF) to all senators urging reconsideration of key provisions from the House bill that are important to local governments. The House bill contains provisions with negative consequences for local governments, including possible delays and cancellations of economically important projects underway at the local level.
As such, we urge the Senate to consider the following changes:
- Reverse changes to clean energy tax credits to preserve the utility of the Elective Pay provision for local governments.
- Prevent clawback of congressionally authorized program funding already awarded to local governments and being used to create economic opportunities.
- Eliminate proposed 10-year moratorium on state and local government regulation of artificial intelligence.
- Preserve state flexibility and minimize funding cuts to Medicaid to ensure the program can be tailored to local priorities.
NLC leadership shared the following statements regarding these priorities:
“While the House bill preserves and improves several policies and programs important to local governments (—) most importantly, preserving the tax-exempt status of municipal and private activity bonds, which are key to financing infrastructure projects in communities (—) other provisions would hinder the ability of local governments to meet the needs of their communities.
“For example, in Athens, we’ve invested in solar panels and geothermal energy for our fire station and are planning to take advantage of the direct pay tax credits with this project. Our region is also committed to purchasing electric vehicles and installing charging stations. The proposed changes to direct pay in the House bill will jeopardize these and thousands of projects and committed investments underway or planned in communities across Ohio and the U.S., leading to job losses and higher energy costs to taxpayers.”
– Mayor Steve Patterson, City of Athens, Ohio and President, National League of Cities
“America’s cities, towns and villages need predictability when it comes to their partnership with the federal government. This includes being able to count on federal grant funding that has been awarded to local communities for important projects or for Medicaid, which spans all levels of government and provides health coverage to approximately 79 million Americans. The proposed cuts to Medicaid would result in 10.9 million people losing health insurance by 2034, according to the Congressional Budget Office. Local governments must balance their budgets every year, and therefore disruptions to committed federal funding will mean that local taxpayers shoulder more of the financial burden.”
– Clarence Anthony, CEO and Executive Director, National League of Cities
The Senate can restore the balance in the local-federal partnership by changing key provisions in the House-passed tax bill that would have negative economic and fiscal impacts on local residents and businesses.
NLC and local officials from the nation’s more than 19,000 cities, towns and villages look forward to working with Congressional leaders on this important legislation which, with key changes, will support local economic growth, job creation, American investment and innovation, and healthy communities.
About NLC
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 Facebook, X, LinkedIn and Instagram.
