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Crow Co-Leads Bipartisan Effort Aimed at Helping Local Governments

May 1, 2020

The FLEX Act would amend the law to allow for additional flexibility for state and local governments to spend federal COVID-19 relief funds

Today Congressman Jason Crow (D-CO-06) joined Congressman Don Bacon (R-NE-02) in co-leading bipartisan legislation aimed at helping local governments utilize funding already allocated under the three previously passed bipartisan legislation packages. H.R. 6652 ‘‘Flexibility for Localities and Eligibility Expansion Act of 2020'' (FLEX Act) amends current language to allow additional flexibility for state and local governments to spend previously approved federal relief funds to offset lost revenue due to the health emergency from COVID-19.

The current guidance prohibits the use of COVID-19 relief funds to offset lost revenues, thereby hurting America's cities during this crisis. The CARES Act allocated $150 billion for state, local and tribal governments but requires these funds only be used to reimburse local governments for direct costs incurred from COVID-19 response actions. As a result of these restrictions, most of these funds remain unused. At the same time, stay at home orders and other public health measures have halted sales tax from economic activity and cut off state and local governments from one of their primary sources of revenue. As a result, cities and towns across America require an immediate infusion of cash to offset lost revenue in order to sustain essential services.

"Our cities and states are on the front lines of this pandemic. As Congress works to address this crisis, we must make sure that legislation is driven not by ideology or party lines, but the needs of our communities. I'm proud to work on this bipartisan effort with my colleague Congressman Bacon to make sure that cities and states can use much-needed CARES Act relief to address their budgetary challenges caused by COVID-19," said Rep. Crow. "The coronavirus has impacted every facet of American life and caused unprecedented shortfalls at the state and local level. As we plan for recovery, we must ensure that our local leaders have the tools they need to keep critical municipal and state services up and running."

"If we don't address these shortfalls now, our local leaders will be standing on the brink of having to make decisions that would result in laying off police, firefighters, and other essential services. We cannot allow that to happen," said Rep. Bacon. "The largest city in my district, the City of Omaha, was scheduled to host to the NCAA Men's College World Series, U.S. Olympic Swim Trials, Berkshire Hathaway Stockholders Meeting, and other events that attract thousands of people into restaurants and bars, generating critical revenue. Without these events Omaha is estimated to lose nearly $35 million this year in tax revenue, negatively impacting the city's operations including first responder departments."

The legislation comes on the heels of Crow's op-ed in The Denver Post with Aurora Mayor Mike Coffman where they called on Congress to support state and local governments in the next stimulus relief package.

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