Inside208

Federal Stimulus Passes House-Senate Action Next

Posted on March 1, 2021 by Dene Westbrook

The U.S, House voted on H.R. 1319 over the weekend, sending the proposed $1.9 trillion American Rescue Plan Act stimulus proposal to the U.S. Senate, where consideration is expected to begin this week.  Both chambers face a looming March 14th deadline to act or risk expiration of the current enhanced unemployment benefits.

A key component of the House-passed legislation is $350 billion dedicated to support state and local governments.  According to information provided by the National League of Cities, this federal aid program would provide support for all 19,000 municipal governments across the country, the first time the federal government has offered this level of support to local governments. The following is a breakdown supplied by NLC prior to House action Friday:

$350 billion for states, municipalities, counties, tribes, and territories.

  • $130 billion for local governments split evenly between municipalities & counties.
  • $65 billion allocated through modified CDBG formula 
  • $45.5 billion for entitlement communities (+50k population)
  • $19.5 billion for non-entitlement communities (-50k population)

No minimum population threshold

No deadline for spending funds

Can be used for replacing lost revenue

Can be transferred between jurisdictions or to non-profit partners

In addition to this direct aid for local budgets impacted by the pandemic, the proposal also offers the following supports:

Housing

  • $25 billion for rent and utility assistance
  • $5 billion for homeless intervention
  • $10 billion for homeowner mortgage assistance
  • $100 million for housing counseling

Education

  • $128.5 billion for grants to State and Local Educational Agencies

Transportation

  • $50 billion for FEMA to reimburse for PPE
  • $30 billion for transit
  • $8 billion for airports
  • $3 billion for Economic Development Administration

Michigan Municipal League members are strongly encouraged to contact Senators Stabenow and Peters to urge their continued support for Michigan’s local governments impacted by the current health crisis.  It is especially important to share your community’s story…specific data on your budget situation and the efforts your community has undertaken to reduce costs and/or respond to revenue shortfalls, relay how you spent any CARES funding that you may have received, and share what unmet needs still remain within your budget or the needs of your residents.  NLC also posted this blog to help explain why the need for emergency local relief is so important.  Please reach out today!

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

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