As you continue to lead your community through the COVID-19 pandemic, we wanted to give you an update about what is happening with the next federal recovery aid package, and ask you to contact your congressional member in support of a bill being negotiated.
Today, Senator Schumer, Senator Gillibrand, and Representatives Delgado and Zeldin have introduced bipartisan legislation formula that will provide counties with direct and flexible recovery aid, which is what we have been advocating for.
The Direct Support for Communities Act will create a local relief fund to be split 50/50 between local governments. Counties would receive 50% of the funds allocated counties based on population. The exception to that formula is that a current CDBG entitlement county would receive its entitlement amount if it is higher than what that county would receive under an allocation based on population.
The other 50% would be allocated for cities, towns, and villages. Of that funding pool, 70% would go to Community Development Block Grant (CDBG) entitlement communities using the CDBG formula through the Department of Housing and Urban Development (HUD) to allocate the funding. The remaining 30% for cities, towns, and villages would be sent to states, which would be required to sub-allocate the entire amount within 30 days to all non-entitlement communities in the state based on population.
This proposal has been championed by Senator Schumer because it is in the best interest of New York State, and our counties and local governments. That’s why we are encouraging each member of our bi-partisan delegation to support these efforts.
While you are contacting your representative, please also ask them to support modifying the CARES Act funding of $150 billion for state and local governments (with populations over 500,000) to allow these funds to be used in an unrestricted basis, including replacing lost revenue and covering COVID-19 expenses.
Please reach out to your congressional member, Senator Charles Schumer and Senator Kirsten Gillibrand in support of including state and local fiscal relief in the next stimulus package.
John F. Marren Daniel P. McCoy
NYSAC President President of the County Executives Association