Governors say states should get $500 billion more to address shortfalls

By: Emily Makings
9:07 am
April 13, 2020

On Saturday, the National Governors Association (NGA) asked Congress to increase federal aid funds for state governments and make them more flexible.

The third coronavirus aid bill (CARES Act) that was passed in March included $150 billion to be shared by state, local, and tribal governments. The funds must be used for needs related to the public health emergency, and they must be used for new costs that were not anticipated in the most recent state or local budget.

(Washington is expected to receive about $2.953 billion. The Tax Foundation has updated estimates of how that will be allocated among the state government, King County, Pierce County, Snohomish County, and Spokane County. Note that the City of Seattle will also be eligible for funding, which could reduce the share allocated for King County.)

Now the NGA wants Congress to amend this provision to allow the funds to be used “for replacement of lost revenue, and these funds should not be tied to only COVID-19 related expenses.”

The NGA also wants an additional $500 billion for “all states and territories to meet the states’ budgetary shortfalls that have resulted from this unprecedented public health crisis. This critical stabilization funding for states must be separate from much-needed fiscal stabilization for local governments.”

Categories: Budget , Categories.
Tags: CARES Act , COVID-19 , other federal action on COVID-19