Letter to Chairman Neal and Ranking Member Brady - Joyce Calls on Congress to Expand Coronavirus Relief Fund Flexibility for State and Local Governments

Letter

Dear Chairman Neal and Ranking Member Brady;

Thank you for your continued leadership on behalf of the American people and for your efforts to provide relief to communities negatively impacted by the outbreak of COVID-19. We/I write to you today to bring an issue to your attention and call on Congress to rectify it in any additional coronavirus relief legislation that the U.S. House of Representatives may consider.

When Congress passed, and President Trump signed into law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, we sought to provide financial assistance to states and local communities that were in dire need. The CARES Act established the Coronavirus Relief Fund (CRF) program to direct financial assistance to communities to make any expenditures that were necessary to combat COVID-19. The problem is that the funding can only be used for expenses that were incurred during the period between March 1, 2020 and December 30, 2020.

After speaking with the Treasury Department, it is clear this restriction also applies to the delivery of products or the rendering of services. For example, if a township purchases an Emergency Medical Service vehicle with CRF assistance and that vehicle is not delivered until after December 30th, it would be deemed an illegal purchase. Due to the increase in demand for certain products, we are experiencing slower response times for private industry to process, manufacture, and deliver orders. We/I believe Congress should amend the CRF program to extend the amount of time states and local governments have to use the funding to obtain products and services to December 31, 2021.

As the country continues to navigate the spread of COVID-19, we must build upon the work we accomplished together in the Spring in order to provide more flexibility to our local communities. Thank you again for the work that you both have done as leaders of the Ways and Means Committee, and we urge you to consider this request.