Coronavirus and the States: Congress to Send States Money; Layoffs Hit Midwest

Read Stateline coverage of the latest state action on coronavirus.

The $2 trillion stimulus package moving through Congress would provide $150 billion to states, territories, local and tribal governments. It appears to allow some flexibility in how states could spend the money but does not address state revenue shortfalls brought on by stunted economic activity.

For example, it would allocate $5 billion for the Community Development Block Grant program, including expansion of community health facilities, child care centers, food banks and senior services. That leaves room for local governments to decide which programs get how much money, within existing guidelines.

However, the package does not address diminished tax collections created by the slowing of state revenues during the crisis, according to the Federal Funds Information for States organization.

Money in the overall package would be distributed based on population, but no state would get less than $1.25 billion, and 45% of a state’s money would be set aside for local governments in places with over half-a-million residents.

If a state doesn’t use up its 45% for localities, the money would revert to the states, according to the National Conference of State Legislatures.

There is $3 billion in total for the District of Columbia, Puerto Rico, Virgin Islands, Guam, the Northern Mariana Islands and American Samoa. Tribal governments would get $8 billion.

Here are some highlights: