On December 21, Congress reached a deal on a new stimulus package addressing the ongoing COVID-19 pandemic. Unfortunately, direct flexible funding for local governments did not make it into the final bill. However, the bill did contain funding for several programs benefiting residents and businesses – most notably an additional round of $600 direct stimulus payments as well as $300 in weekly supplemental unemployment insurance through March 14, 2021.

Other funding items include:

• $25 billion for rental and utility assistance;
• $325 billion in small business aid, including another $284 billion in Paycheck Protection Program (PPP) loans;
• $54.3 billion for public schools;
• $45 billion for transportation;
• $13 billion for the Supplemental Nutrition Assistance Program (SNAP); and
• $7 billion for broadband, including $3.2 billion dedicated to low-income broadband emergency subsidies and another $300 million for rural broadband.

The bill also provides covered employers a tax credit for providing emergency paid sick leave or emergency paid FMLA Leave under the Families First Coronavirus Relief Act. The tax credit will apply to leave taken between January 1, 2021, and March 31, 2021. Unfortunately, this tax credit does not apply to public employers.

As we learn more about how these funds will be distributed, we will pass the information along.

President-elect Joe Biden has publicly stated that more relief is forthcoming. NLC and AWC will continue to advocate on behalf of cities to make direct, flexible federal funding available to cities in Washington and across the country.