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Feb 11

February 11, 2021 TML Coronavirus Update #172

Posted on February 11, 2021 at 2:50 PM by TML Staff

Urgent Updates


What’s the latest from the National League of Cities regarding future stimulus legislation?


According to NLC, “the House Oversight and Reform Committee provided new details on the state and local government aid section of the COVID-19 emergency aid reconciliation package. The state and local section meets NLC’s top legislative priority of delivering federal emergency aid to every city, town, and village, with no minimum population requirement.”


NLC staff are reporting the following details:

-$350 billion in total for all cities, counties, states, tribes, and territories. Of that amount, $130 billion is set aside for local governments, equally divided between cities and counties.

-The $65 billion for cities will be allocated to all 19,000 cities, towns, and villages according to a modified Community Development Block Grant formula.

-Under the modified formula, $45.5 billion will be split among all cities that are designated CDBG entitlement cities (generally cities with a population of at least 50,000) and $19.5 billion will be split among non-entitlement cities (generally cities with a populations below 50,000).

-There will be no deadline for spending down funds.

-Lost revenue replacement will be an eligible expenditure.

-The U.S. Treasury Department will allocate funds similarly to CDBG, with entitlement cities’ share determined by that formula and non-entitlement cities’ share based on population.


The Oversight and Reform Committee will vote on the state and local aid section, including amendments, tomorrow (February 12). Following passage, the section will be delivered to the House Budget Committee to be assembled into the broader emergency aid package.


Further Updates


What’s the latest from the comptroller on sales tax allocations?


Texas Comptroller Glenn Hegar announced yesterday (February 10), that “he will send cities, counties, transit systems, and special purpose taxing districts $1.05 billion in local sales tax allocations for February, which is 0.7 percent more than in February 2020.”