Middle Class Health Benefits Tax Repeal Act of 2019

Floor Speech

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Ms. KAPTUR. Mr. Speaker, H.R. 748 contains a critical provision that will be used to assist state and local governments in their response to the crisis engulfing our nation. Indeed, local governments are bearing the heavy burden of response with dwindling resources while helping terrified Americans manage as best they can. As the entities closest to the ground, these local governments are on the front line of the fight, and we must ensure they have adequate funding.

This provision, Section 5001 of the CARES Act, provides that Treasury will provide assistance directly, and not through the State intermediary to units of local government with more than 500,000 people. The provision, allows for a significantly broad definition of local governments and specifies that ``[t]he term `unit of local government' [includes] . . . other unit of general government below the State level with a population that exceeds 500,000.'' Section 5001 explicitly allows any government that represents more than 500,000 and includes regional councils of government which are chartered under state law.

In Ohio, Chapter 167 of the revised code provides broad authority for a regional council of government to act as a local unit of government, to plan, enter cooperative agreements related ``to matters affecting health, safety, welfare, education, economic conditions, and regional development.'' See Ohio Revised Code, Sec. 167.03.

In drafting and approving H.R. 748, the House and Senate intended section 5001 to be administered liberally, and for Treasury and the Courts to construe the statute broadly so as to encompass all local government entities with more than 500,000 citizens to act directly, and not through the intermediary of a state government. In fact, the State of Ohio has specifically devolved local authority to the regional council of governments to act in the general welfare interests of their citizens as a unit of general government.

As Treasury promulgates regulations to implement this statute, the law intends for these regional councils of government to act as a general unit of local government, and envisions them to be eligible to certify and receive the state stabilization dollars.

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