LOC News
Stimulus Package – Off the Table Until November…Maybe??
Throughout the summer and fall, multiple interests across the nation have been lobbying Congress for an additional stimulus package for business, individuals and local governments. The National League of Cities, in partnership with many groups, has pressed for direct financial assistance to cities, towns and villages. Their efforts have helped keep these incredibly important resources included in the stimulus conversation despite many efforts to drop the funding from negotiations.
Recently, the funding gap has closed in the negotiations between Democratic and Republican leaders. Initially, the two camps were separated by more than $2 trillion, with the relief package proposed by Democrats at more than $3 trillion, and Republicans unwilling to go beyond $1 trillion, and leaving out any assistance for local governments. Under the most recent offers, less than $600 million separated the stimulus packages, represented by $2.2 trillion from Democrats and $1.62 trillion from Republicans. Both proposals carried a local government share within the overall relief package. On Twitter this week, President Trump initially called off any further negotiations until the after the election, effectively shutting the door on further communications. The president later shifted course and offered support for additional stimulus checks and assistance for the airline industry.
Communication between House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Steve Mnuchin renewed late this week, but whether the conversation is solely for an airline assistance package, or whether it becomes a more comprehensive package, is still in doubt. Given the timeline for the election and the highly politicized nature of election year politics, an additional stimulus package at this point is a longshot.
Contact: Jim McCauley, Legislative Director - jmccauley@orcities.org
Last Updated 10/9/20