“The CARES Act designates funds from the Coronavirus Response Fund for states and local governments with populations over 500,000. The understanding was that smaller local governments that did not meet that population threshold would receive funds from the state’s share directly.”
A clause in the law “could restrict a state from disbursing funds at all to local governments with a population under 500,000,” according to the email from Kent Scarrett, executive director of the Ohio Municipal League.
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In a telephone call, a U.S. Treasury official confirmed that states can grant funds to local governments so long as those funds are used in the same way as it is used by the states as outlined in the statute, according to the call to action to Ohio municipalities.
“However, there is now concern that the language defining how those funds could be used is too restrictive. The U.S. Treasury is reviewing the language and says it will provide a final determination and guidance on this issue.”
The National League of Cities is leading lobbying efforts on Capitol Hill.
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“We urge our members to call their members of Congress and echo this request. Without direct funding, smaller local governments will be unable to continue providing critical services to their residents during this time of crisis,” Scarrett concluded.
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