Legislation introduced by U.S. Sens John Cornyn (R-TX) and Alex Padilla (D-CA) to re-allocate unspent COVID-19 relief dollars toward infrastructure and disaster relief passed in the Senate last week.
The State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act would make several categories of infrastructure investments and disaster relief eligible for COVID relief dollars while extending the deadline to use relief funding. Previously offered as an amendment to the infrastructure bill, the legislation was supported by U.S. Sens. Lisa Murkowski (R-AR), Ron Wyden (D-OR), John Kennedy (R-LA), Patty Murray (D-WA), Mark Kelly (D-AZ), Jeanne Shaheen (D-NH), Rick Scott (R-FL), and Dan Sullivan (R-AR).
“In 2020, states and cities across the country delayed or canceled transportation improvement projects totaling about $12 billion,” Cornyn said. “This legislation puts decision-making power at the local level and gives these leaders more flexibility to invest in the most critical projects for their communities, whatever those might be. This will give communities in Texas and all other states the ability to use pandemic relief funding when and where it’s needed most. I want to thank Senators on both sides of the aisle who have worked with Senator Padilla and myself on this.”
The American Rescue Plan Act made water, wastewater, and broadband infrastructure eligible for COVID funds. The new legislation would provide additional flexibility for states, tribes, and local governments to spend their allocation of Coronavirus State and Local Fiscal Recovery Funds up to $10 million or 30 percent of the funds. The bill also allows these funds to be used to provide emergency relief from natural disasters. It creates a process for local officials to decline the funds if their jurisdictions did not see budget shortfalls during COVID, an option currently not available to them under the American Rescue Plan.
“Each region of the country has unique local challenges in responding to the COVID-19 pandemic. This bill will provide state, local, tribal, and territorial governments the flexibility they need to better use federal resources to care for and serve their residents. This will ultimately help strengthen our response to the continued fight against COVID,” said Sen. Padilla.
The bill is endorsed by the National Governors Association, National Congress of American Indians, the U.S. Conference of Mayors, the National League of Cities, American Road & Transportation Builders Association, National League of Cities, Association of Metropolitan Planning Organizations, and the American Association of State Highway and Transportation Officials, among others.