Alert: $350 Billion in Local and State Aid Included in Reconciliation Plan

The House Committee on Oversight and Reform Committee votes on the state and local aid provisions and amendments starting February 12 at noon.

By Elizabeth K Kellar | Feb 10, 2021 | ARTICLE

The House Committee on Oversight and Reform has provided topline reconciliation provisions for state and local government aid, including $350 billion in direct aid for all municipalities, states, tribes, and territories.  Local governments would receive $130 billion, equally divided between municipalities and counties.  This has been a top priority for ICMA and the national associations of local and state governments.  

The $65 billion for municipalities would be allocated to all 19,000 cities, towns, and villages according to a modified Community Development Block Grant (CDBG) formula:   

  • $45.5 billion split among all municipalities that are designated CDBG entitlement cities (generally cities with populations above 50,000).
  • $19.5 billion split among cities not designated CDBG entitlement cities (generally cities with populations below 50,000 residents).

The funds can be used to address revenue losses and there is no deadline for spending down the funds. Statements of support are welcome and can be sent to advocacy@nlc.org no later than Thursday, February 11, 5:00 p.m. EST.

Advertisement

You may also be interested in