No Muni Provisions but Provides Direct Aid to State and Local Governments
House Leadership has introduced a slimmed down HEROES Act, a $2 trillion dollar stimulus package in response to the recent pressure by the House Problem Solvers Caucus. The package, a compromise bill that is $1 trillion less than the original HEROES Act introduced this summer, will face a tough, if not impossible path for passage in the Senate.
The package, while providing over $400 billion in direct aid to state and local governments and no municipal bond provisions, would work to revert the cap on the state and local tax deduction (SALT) stemming from the 2017 Tax Cuts and Jobs Act, and a likely non-starter in the Senate.
The bill text can be viewed here.
Key Provisions:
- State Fiscal Relief – $238 billion in funding to assist state governments with the fiscal impacts from the public health emergency caused by the coronavirus, including $755 million in CARES Act Coronavirus Relief Fund repayment for the District of Columbia
- Local Fiscal Relief – $179 billion in funding to assist local governments with the fiscal impacts from the public health emergency caused by the coronavirus
- Tribal Fiscal Relief – $9.5 billion in funding to assist Tribal governments with the fiscal impacts from the public health emergency caused by the coronavirus
- Fiscal Relief for Territories – $9.5 billion in funding to assist governments of the Territories with the fiscal impacts from the public health emergency caused by the coronavirus.
- Assistance to Multi-State Transportation Agencies – $100 million for assistance to multi-state entities that are involved in the transportation of passengers or cargo and are suffering revenue losses due to the public health emergency caused by the coronavirus.
- Community Development Financial Institutions (CDFI) – $1 billion for economic support and recovery in distressed communities by providing financial and technical assistance to CDFIs.
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