News Flash

Federal Government

Posted on: April 24, 2020

Local Governments Seek Support, Flexibility in Next Federal COVID-19 Bill

When Congress passed the Coronavirus Aid, Relief, and Economic Security Act - $2.2 Trillion CARES Act - it included a $150 Billion State and Local Stabilization Fund. Minus funding for U.S. Territories, and autonomous Tribal Governments, about $139 Billion is being distributed to the States, for their own use (55%) and for redistribution to ‘qualifying’ local governments (45%). 

The State of New Jersey is slated to receive $3.444 Billion. Of that total, a minimum of $1.894 Billion is earmarked for State use. The balance - $1.550 Billion - COULD be distributed to ‘qualifying’ local government. 

On Wednesday, the U.S. Treasury released official guidance. These funds can only be used to fund extraordinary costs, caused by COVID-19. These must be costs not anticipated in each entity’s current operating budget. They cannot be used to cover revenues not collected, as a result of the financial impact of the Coronavirus on taxpayers. And, they cannot be used to supplement other federal funding to be delivered to states and localities, through FEMA, pursuant to declared states of emergency. 

Yesterday, noting these limitations, Governor Murphy lamented the minimal value of the stabilization aid.

Our federal partners at the National League of Cities (NLC) have been hard at work to secure support for funding for all of America’s municipalities, and for greater flexibility in the use of that aid. We detail the problems and the prospects for solutions in this Town Crier blog post.

Contact: Jon Moran, Senior Legislative Analyst,, 609-695-3481 x121.

Facebook Twitter Email

Other News in Federal Government

Local Aid Crucial for Economic Recovery

Posted on: August 25, 2020

Time is Running Out for the 2020 Census

Posted on: August 14, 2020

Call for Federal Lifeline

Posted on: May 22, 2020

HEROES Act Includes Hometown Help

Posted on: May 15, 2020

Week of May 4 COVID-19 Update

Posted on: May 8, 2020

Possible Help for Seasonal Businesses

Posted on: April 30, 2020

New Federal Help for Local Businesses

Posted on: April 29, 2020

Congress Considers Local Aid Bills

Posted on: April 17, 2020

CARES Act Information Update

Posted on: April 3, 2020

CARES Bill Follow-up

Posted on: March 30, 2020

Federal CARES Act Analysis Continues

Posted on: March 27, 2020

Delays on Gateway Continue

Posted on: March 10, 2020

FEMA to Delay New Flood Insurance Rates

Posted on: November 8, 2019