Big 7 Sets the Record Straight on CARES Act Spending

Treasury report focused on state spending to date, failing to account for allocated funds and forecasted losses.

Aug 3, 2020 | ARTICLE

ICMA joined with the Big 7 national associations representing local and state governments to set the record straight on state expenditures from the Coronavirus Relief Fund (CRF) approved by Congress in March as part of the CARES Act.

The Big 7 joint statement reads, in part, that "while the Treasury report focused on state spending to date, it fails to account for allocated funds and forecasted losses, which are due to the historic drop in GDP and record high unemployment," according to the National Governors Association, National Conference of State Legislatures, National Association of Counties, National League of Cities, The Council of State Governments, The United States Conference of Mayors, and ICMA.

"We note that the CRF funds were not distributed until late April and that the next two months were spent in the development of 'evolving' guidance and FAQs that were not completed until the end of June.  Yet the reporting period for the Treasury report in question ended June 30.  With this timeframe in mind, we strongly hold that state and local governments have moved expeditiously and responsibly in the use of funds and their timely deployment." 

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