Dear Secretary Mnuchin:
I write to you on behalf of the state and local governments around the country that are facing unprecedented fiscal pressures due to the outbreak of novel Coronavirus (COVID-19). I urge you to expeditiously issue guidance per Sec. 5001 of P.L. 116-136, the Coronavirus Aid, Relief and Economic Security (CARES) Act, that will ensure states can most effectively make subgrants to smaller units of government within their state. I also ask that you define the term "necessary expenditures" as broadly as possible to assure that local governments are fully empowered in how they use their allocated funds.
As you are aware, the CARES Act included $150 billion for state and local governments. States, counties, and municipalities throughout the country are anxiously waiting on these funds to help navigate this ever-expanding public health crisis. Treasury's fast disbursal of funding from the Coronavirus Relief Fund will promptly help alleviate the difficulties these communities are facing.
I understand the Department of the Treasury is actively working to finalize guidance and appreciate your diligence in completing your work as soon as possible. Our state and local governments are on the frontlines, providing vital services on the ground to their respective communities. We must support them, especially smaller communities, during this difficult time.
Thank you again for your timely consideration of this request. I look forward to continuing to work together to ensure our states, and the communities that comprise them, have the resources they need to survive this crisis and soon transition to a robust recovery.