Coalition Supports State and Local Aid

Abstract

We write today to offer our enthusiastic endorsement of the budget reconciliation language providing $350 billion in flexible aid for our states, cities, counties, tribes, and territories. We encourage the House and Senate to swiftly pass this urgently needed aid. Many states and localities have seen their revenues plummet as a result of the pandemic even as costs have risen sharply to fight the virus and to help millions of struggling people and businesses. State revenues are down some 7 percent compared to before the pandemic even as the need for state services has skyrocketed with one in three adults struggling to meet household expenses. Meanwhile, many cities and counties have been hit even harder. The average city with falling revenues has seen collections drop by 21 percent, even as costs have soared, and counties face similar conditions.