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On Sunday, December 27, President Trump signed into law a nearly 6,000-page end-of-year legislative package that included 12 FY 2021 spending bills totaling $1.4 trillion, a $908 billion COVID-19 relief package, the Water Resources Development Act (WRDA), and an energy package, among other policy provisions.

This document highlights the provisions of the COVID-19 relief package most relevant to state and local governments.

As previously reported, the package does not include significant resources for state and local governments, aside from funding through a new Housing and Rental Assistance program and potentially through CDC funding for distribution and administration of the COVID-19 vaccine.

The legislation extends by one year the deadline for state and local governments to use monies provided by the Coronavirus Relief Fund (CRF), but does NOT provide any additional flexibility for utilization, such as revenue loss.

Additionally, while many reports anticipated the legislation might provide additional Federal Emergency Management Agency (FEMA) Disaster Relief funds that could potentially be tapped by local governments, it did not do so, nor did it waive existing cost share requirements. The bill does provide $2 billion (100 percent federal match) to be paid through the FEMA Disaster Relief Fund for the express purpose of helping an “individual or household […] meet disaster-related funeral expenses.”
Stay safe and healthy,
Pat Soldano
President; Policy and Taxation Group
[email protected]
712 H Street NE Suite 1091
Washington DC 20002
About Policy and Taxation Group
Policy and Taxation Group is your voice in Washington on economic freedom. We advocate for policies that allow American families to fully enjoy the economic liberties and benefits of a robust free market unique to our nation. For over 25 years, we have been the loudest voice in the nation’s capital on eliminating the death tax. This ill-conceived tax has a destructive impact on families, family businesses, job creation, and the national economy.
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