WASHINGTON, D.C. – Congressman Clay Higgins (R-LA) is cosponsoring H.R. 7065, which requires states to distribute Coronavirus Relief Funds (CRF) to rural communities and smaller cities and towns.
The CARES Act appropriated and delivered $150 billion to help state and local governments offset Coronavirus-related losses in revenue. However, a report by the National League of Cities showed that 32 states were withholding federal funds from local governments while others lacked a detailed process for administering the funds.
This bill requires states to certify to the Department of the Treasury by June 12, 2020, that they have a detailed process in place for redistributing a portion of those funds to local governments within their jurisdiction. If states do not make the certification by June 12, the Inspector General of the Department of Treasury will reclaim 25% of CRF funds previously provided to the state.
Congressman Higgins issued the following statement:
“We have already appropriated a significant amount of money for states and local governments through the CARES Act. However, much of that funding has been hoarded by state governments. Before any additional dollars are allocated, the existing $150 billion in Coronavirus Relief Funds must be appropriately distributed at the state and local level. This bill ensures that happens in a timely manner.”
