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Federal Call to Action: House Releases $3 Trillion Stimulus Plan, Includes $375 In Direct Aid to Local Government

Posted on May 12, 2020 by John LaMacchia

House Speaker Nancy Pelosi has released the HEROES Act (HR 6800). It is $3 trillion stimulus plan that would send nearly a trillion dollars to state and local governments. The most significant portion of this proposal is that it would allocate $375 billion in direct assistance to local governments of all sizes to address the fiscal impacts from the public health emergency caused by the coronavirus. View the estimated amount your community would receive under the HEROES Act.

Act now through the Michigan Municipal League’s Action Center.

Local governments – $375 billion

  • $250 billion awarded within 30 days of enactment to all municipalities and counties
    • $125 billion to municipalities using a modified CDBG formula
      • $87.5 billion to entitlement municipalities
      • $37.5 billion to non-entitlement municipalities. These funds will be awarded to states, which must make awards to non-entitlement cities based solely on population within 30 days of receipt.
    • $125 billion to counties based on population
  • $125 billion awarded one year after the date of enactment to all municipalities and counties
    • $62.5 billion to municipalities using a modified CDBG formula
      • $43.75 billion to entitlement municipalities
      • $18.75 billion to non-entitlement municipalities. These funds will be awarded to states, which must make awards to non-entitlement cities based solely on population within 30 days of receipt.
    • o $62.5 billion to counties based on population

Additionally, states would receive $500 billion in aid to deal with the affects of COVID-19. For a full summary of the bill please click here. For a summary of the state and local allocation please click on the following link. HEROES Act State and Local Relief Funds Summary

Call To Action!

In anticipation of the federal government beginning this conversation, the League has reached out to each member of the Michigan delegation asking them to go on record supporting direct assistance to all local governments in Michigan. Now it is time for you to help us weigh in!

We have partnered with the National League of Cities on their “Cities are Essential” campaign. This campaign is calling for $500 billion in direct federal aid and economic relief to support communities on the frontline of America’s response to COVID-19. The House released plan is recognition that our messaging on supporting local government is making a difference and we need to continue our advocacy on this issue.

We encourage each one of our members to reach out directly to their member of congress and ask them to support this effort to provide flexible direct assistance to communities of all sizes in Michigan. You can also utilize the action tool through the “Cities are Essential” campaign by clicking here. This will allow you to send a letter directly to your congressperson, download a letter of support you can sign and even send your congressperson a tweet!

It is anticipated that the House will vote as soon as this Friday so please reach out as soon as possible. Thank you for your support and stay healthy!

John LaMacchia is the Assistant Director of State and Federal Affairs for the League handling transportation, infrastructure, energy and environment issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

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